As world economies recover from the global financial crisis, the Third Annual Global Leadership Survey of the International Federation of Accountants (IFAC) revealed its membership as vocal advocates for small and midsize businesses, as well as for the adoption of global accounting and auditing standards. It also highlighted corporate governance enhancements in jurisdictions around the world.As world economies recover from the global financial crisis, the Third Annual Global Leadership Survey of the International Federation of Accountants (IFAC) revealed its membership as vocal advocates for small and midsize businesses, as well as for the adoption of global accounting and auditing standards. It also highlighted corporate governance enhancements in jurisdictions around the world.

"Our members took action to assist their jurisdictions during the crisis, lending their expertise to governments and businesses. Through a variety of outreach programs, they also let the public know what a valuable role the professional accountant plays in all the sectors we serve, especially in a time of crisis," says IFAC Chief Executive Officer Ian Ball. Mr. Ball noted that, in October and November 2009, IFAC received 105 responses to its online survey from the presidents and chief executives of accountancy institutes, and regional accountancy organizations and groupings. He adds, "Survey respondents believe that continued emphasis on effective implementation of international accounting and auditing standards and good corporate governance principles are critical issues for the future."

Public sector finance improvements. Because the financial crisis led to many governments' assuming an interventionist role in their economies through providing a range of guarantees and undertaking bailouts of major banks and other institutions, among other actions, the survey sought information on efforts to improve the transparency and accountability of governments for public sector finance. Many respondents reported their countries were in the process of adopting the International Public Sector Accounting Standards (IPSASs), which can provide the reliable information about government finances that is so important in the context of the crisis.

Corporate governance enhancements. When survey participants were asked whether there had been enhancements to corporate governance in their jurisdictions, the majority reported that there had either been improvements, that actions were in process, or that such changes were being considered. In particular, they reported the adoption of the Organisation for Economic Co-operation and Development's (OECD) good governance principles, but there was an extensive range of responses, from making it mandatory for companies of a certain size to create an audit committee, to introducing codes specific to small businesses.

Demand for accountants. IFAC's survey also asked about the demand for accountants throughout the broad spectrum of sectors in which they work, and found that the profession remains attractive to students and those already in the field. According to survey responses, the demand for accountants remains high, worldwide, with growing interest in the government and academic sectors. Participants believe the demand for accountancy professionals will grow in the coming years.

Unity of the profession. Finally, respondents believe in the importance of maintaining the unity of the accountancy profession, in order to play a role in the changing regulation of the financial sector internationally. They said that they believe that IFAC should continue in its roles as a voice of the global profession--such as its memoranda to the G-20 leaders on reform of the global financial system, including special consideration for the needs of SMEs (small and medium entities)--and as a global standard-setter for auditing and public sector accounting, and professional ethics and education. 

The full report is available in the Policy Position Papers and Reports section of IFAC's Publications and Resources site.

About IFAC
IFAC (www.ifac.org) is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 159 members and associates in 124 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce.

Over 200 delegates from more than 40 countries gathered in Beijing for the fourth annual IFAC SMP Forum (www.ifac.org/smp/index.php#Resources) of the International Federation of Accountants (IFAC) Small and Medium Practices (SMP) Committee--making it the largest gathering in the event's history. Co-hosted by the Chinese Institute of Certified Public Accountants (CICPA) and the Confederation of Asian and Pacific Accountants (CAPA), the conference covered topics ranging from how to accomplish sustainable growth during economic turbulence to ensuring that international standards are relevant to SMEs/SMPs, and included presentations from the World Bank and the Asian Development Bank.Over 200 delegates from more than 40 countries gathered in Beijing for the fourth annual IFAC SMP Forum (www.ifac.org/smp/index.php#Resources) of the International Federation of Accountants (IFAC) Small and Medium Practices (SMP) Committee--making it the largest gathering in the event's history. Co-hosted by the Chinese Institute of Certified Public Accountants (CICPA) and the Confederation of Asian and Pacific Accountants (CAPA), the conference covered topics ranging from how to accomplish sustainable growth during economic turbulence to ensuring that international standards are relevant to SMEs/SMPs, and included presentations from the World Bank and the Asian Development Bank.

In greeting attendees, IFAC's President Robert L. Bunting spoke of the CICPA as "an active and much-appreciated member of IFAC" and complimented its role in adopting and implementing international standards in China. This includes convergence of Chinese Accounting Standards (CAS) and International Financial Reporting Standards (IFRS) and accelerating plans to accept the recently issued clarified International Standards on Auditing (ISAs) from the International Auditing and Assurance Standards Board.

Turning his subject toward the global economic crisis, Mr. Bunting said, "I realize that, here in China, the story has been somewhat different; indeed your country has been a source of continued growth and contributed to the world economy's recovery. But because of the global nature of our business environment, your business sector has suffered from many of the same problems as other countries, relating to employment and general financial woes.

"And when a country suffers, chances are very good that SMEs, and the SMPs that support them, suffer more than the average. That is why this year's Forum is so critical," Mr. Bunting said. "Yes, IFAC understands that SMEs are engines for economic growth and ideas--but we also know that the SMPs who work with them are the first ‘go-to partners' for these entrepreneurs, with the knowledge of the issues they face and how they can be addressed. And that is why IFAC supports them as they help SMEs create a vision for change." He then spoke of the recent SME lending survey conducted by IFAC with The Banker magazine. It found that lenders were "highly influenced" by loan-applicant-SMEs who had external accountants providing assurance services and/or financial advice.

According to Sylvie Voghel, Chair, SMP Committee, "This event has provided a unique setting for representatives from IFAC member bodies, recognized regional organizations, acknowledged accountancy groupings, and other accountancy organizations and guests to exchange ideas." She added, "The result was impressive--new insights on ways for IFAC and the international profession to respond to a wide range of issues currently facing SMPs and SMEs, both in China, the world's most populous nation, and globally."

About IFAC
IFAC (www.ifac.org) is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 157 members and associates in 123 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce.

Good morning. As president of the International Federation of Accountants, IFAC, I want to thank you for joining us here this morning as we speak of issues that are critical not only to Brazil and Latin America but to the world. In addition, I want to extend greetings to our CReCER partner organizations - the World Bank, Inter-America Development Bank, IFAC member CFC and the six largest accounting networks - for all their work in the preparation of this week's program.

As I was preparing to travel to Brazil, the IFAC staff has helped by providing me background information about the economy and other issues that quite relate to the country I am visiting.  One of the things that step out in my mind about the background information I have received was the motto of São Paulo, "Non ducor, duco"; which as I understand correctly, means, "I am not led; I lead." This speaks directly to the independence and the spirit and leadership in São Paulo and its people, and it forms the perfect background for me today, in choosing the themes that I would like to share with you. 

There are four areas/four themes, of leadership that I would like to discuss. The first is: Speaking out as the global voice of the profession. The next is: Showing the way to an improved financial infrastructure. The third concerns: Supporting SMEs and micro-entities that need extra care; and, last, is: Sharing tasks when collaboration is appropriate.

The International Federation of Accountants (IFAC) and its Small and Medium Practices (SMP) Committee welcome the release of the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) by the International Accounting Standards Board (IASB). IFAC encourages its 157 member organizations to carefully consider how to use the standard in their respective jurisdictions.The International Federation of Accountants (IFAC) and its Small and Medium Practices (SMP) Committee welcome the release of the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) by the International Accounting Standards Board (IASB). IFAC encourages its 157 member organizations to carefully consider how to use the standard in their respective jurisdictions.

"This global accounting standard represents a very significant step on the path to global convergence of financial reporting practices by SMEs. It will contribute to enhancing the quality and comparability of SME financial statements around the world and assist SMEs in gaining access to finance," remarks IFAC Chief Executive Ian Ball, adding, "The beneficiaries will be not only SMEs, but also their customers, clients, and all other users of SME financial statements."

IFAC, largely through its SMP Committee, has been closely following and supporting this project since its inception. It has provided input to the IASB to assist it in reaching a solution that will contribute to the quality of SME financial reporting without placing costly and unnecessary compliance burdens on SMEs.

Sylvie Voghel, chair of the IFAC SMP Committee, points out, "This standard is a significant development; however, its issuance is not the end of the story, but rather the opening chapter. Consistent and effective implementation will demand a concerted international effort to mobilize the necessary support for companies and preparers. The development of free training materials by the International Accounting Standards Committee Foundation is a very positive step in this direction."  

Ms. Voghel adds, "The IASB will also need to monitor the implementation of the IFRS for SMEs and be prepared to revise and update it. Such flexibility is key to ensuring its continued relevance and usability."

IFAC is currently considering the role it can play together with its member bodies to facilitate implementation of the new standard.

About IFAC
IFAC (www.ifac.org) is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 157 members and associates in 123 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce.

Accountancy leaders from around the world discussed   the global financial crisis, the needs of small- and medium-sized enterprises, and the ways in which professional accountants can contribute to rebuilding economic stability at meetings hosted by the International Federation of Accountants (IFAC) last week in New York.

IFAC convened 40 leaders of accountancy institutes and regional accountancy organizations at its annual Member Body Chief Executives Meeting. Participants heard presentations from Svein Andresen, Secretary General of the Financial Stability Forum, and Nicolas Veron, research fellow at Bruegel, a European economic policy research organization, on the causes of the financial crisis and some of the short- and long-term issues to be addressed. Accountancy leaders from developed and developing countries, along with representatives of the firms, discussed how they were addressing the crisis, including their roles in supporting members of the profession on issues such as ethics, fair value accounting, and going concerns, and in contributing thought leadership to the development of new regulations and policies.

“There was broad agreement that now, more than ever, our profession must be unified in our approach to addressing economic issues,” emphasizes IFAC President Robert Bunting. “IFAC is working closely with its member organizations to determine the best way forward in addressing matters related to the crisis.”

“Our independent standard-setting boards, particularly the International Auditing and Assurance Standards Board and the International Public Sector Accounting Standards Board, are expediting their work on standards and guidance that will help accountants employed in public practice and in government to address the issues they face in the current environment,” states IFAC Chief Executive Officer Ian Ball.

At the IFAC Board meeting on February 19^th and 20^th,  Board members also focused on issues related to the global financial and economic crisis, resolving to identify those areas where the profession’s expertise would be most useful and to reach out to organizations addressing issues related to the crisis.

A significant part of the Board discussions concentrated on the issues facing small- and medium-sized practices and small- and medium-sized entities (SMEs). Board members approved a process for exploring how IFAC can best support this important sector of the global economy and a proposal on this topic will be presented to the Board in June.  All IFAC members and associates, regional accountancy organizations, firms, and professional accountants will be invited to provide their input.

In addition, the Board approved for release a study on national initiatives related to the financial reporting supply chain. Based on a survey of its member bodies, the new publication, Developments in the Financial Reporting Supply Chain: Results from a Global Study among IFAC Member Bodies, acknowledges that progress has been made, but also reports that greater attention needs to be given to the following: corporate governance; financial reporting and, in particular, the adoption of suitable reporting standards for SMEs; financial auditing; and the usefulness of financial reports.

In other actions, the IFAC Board approved Roger Tabor, a member of the Professional Accountants in Business (PAIB) Committee since 2004, as Chair of the committee. A past president of CIPFA, Mr. Tabor brings 22 years of director-level experience in a major public service organization and a broad range of finance and planning experience to his new role as PAIB Committee Chair.

About IFAC
IFAC (www.ifac.org) is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 157 members and associates in 122 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. The organization, through its independent standard-setting boards, sets international ethics, auditing and assurance, education, and public sector accounting standards. IFAC also issues guidance to encourage high-quality performance by professional accountants in business.

It is an enormous pleasure and privilege for me to be able to share time with you this morning in order to discuss convergence with international standards on auditing.  President CA Ved Jain, may I start these remarks by thanking you most sincerely for the opportunity to share time with you, with your Vice President, CA Uttam Prakash Agarwal, with your fellow guests and with your members: fellow chartered accountants of the Institute of Chartered Accountants of India. 

May I also take this opportunity to congratulate you on your election as a member of the Board of the International Federation of Accountants, which became effective last week on 13 November 2008.  Our global profession has been illuminated by the contribution of the Institute of Chartered Accountants of India and its many excellent nominees to IFAC boards and committees; it will be even more brightly illuminated by your presence at its Board meetings.  Under your leadership, the Institute of Chartered Accountants of India is the largest professional body of Chartered Accountants in the World, with a strong tradition of service to the public interest and to the Indian economy.  Members of your Institute are increasingly working overseas, to the benefit of the economies of the countries in which they work. 

I am particularly delighted at the MOU signed yesterday between the Institute of Chartered Accountants of India and my own professional body of the Institute of Chartered Accountants in England and Wales.  This foreshadows a time of great development of our wonderful profession in India and the UK and of even more outstanding service to our two great nations.  May I congratulate you on your outstanding leadership of the Institute of Chartered Accountants of India, which will shine throughout the years ahead as a major milestone in the development of the Indian profession and the Indian economy. 

One of the epithets applied to the Institute of Chartered Accountants of India is "partners in nation building."  To me, this is an excellent characterisation of the contribution of our profession of accountancy to the world.  Our profession is concerned with adding value to economies, in particular in creating an investment climate of trust.  An investment climate of trust is key to raising capital on the national and international markets.  It is key to the provision of energy, water, education, healthcare, food, and employment.  Indeed, it is key to the fight against poverty-a fight which is so important to us all.

High standards of auditing are an essential component of an investment climate of trust, and it is my firm belief that trust will be higher if all nations adopt and implement International Standards on Auditing as the standards to be followed by auditors in their own country.  I am most encouraged by the progress which has been made in India towards the adoption of International Standards on Auditing and would strongly encourage you to complete this process at the very earliest opportunity.  Indeed, I am delighted to have been told that this is your firm intention.

Mid-sized enterprises, compared with their small and large counterparts, face unique challenges in virtually all aspects of their businesses, including strategic management, organizational and financial structure, corporate governance, risk management and internal control, management accounting, and business reporting. Recognizing that professional accountants in business play an important role in each of these business areas, the Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has released a new publication entitled The Crucial Roles of Professional Accountants in Business in Mid-Sized Enterprises.

This information paper features interviews conducted by Eric Krell, an experienced financial journalist, with 10 senior-level professional accountants in business on their experiences in mid-sized enterprises. The interviews illustrate the critical roles that professional accountants in business play in identifying and addressing the unique challenges that mid-sized enterprises face.

"While the professional accountants in business who were interviewed for this paper are from different enterprises all over the world, they confront similar challenges and their solutions point in the same direction," states Edward Chow, Chair of the PAIB Committee. "The experiences and the lessons that they share can help professional accountants in business and others in addressing similar issues, as well as in driving performance and creating value for their organizations."

This interview-based information paper is part of a larger PAIB Committee project on mid-sized enterprises. It will serve as the basis for the development of principles-based good practice guidance on the typical challenges that mid-sized enterprises confront and how professional accountants in business can help in responding to those issues.

The paper, along with a range of other publications on topics of interest to professional accountants in business, can be downloaded from the IFAC online bookstore. 

IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 157 members and associates in 123 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC sets international standards on ethics, auditing and assurance, education, and public sector accounting. It also issues guidance to encourage high quality performance by professional accountants in business.

This paper features interviews with 10 senior-level professional accountants in business on their experiences in mid-sized enterprises. The purpose of these interviews is to better understand the unique challenges that mid-sized enterprises confront and how professional accountants in business help address these challenges.

This paper presents the findings of focus group interviews on whether the proposed International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs), developed by the International Accounting Standards Board, is suitable for micro-entity financial reporting.

Good morning. I'm delighted to participate in ARENA 2007 here in Stockholm. I would like to thank your President, Peter Clemedston, and Secretary General, Dan Brannstorm, for inviting me to speak to you today.

I am honored to be sharing the stage with FEE President, Jacques Potdevin, and with Olivier Boutellis-Taft, FEE's Chief Executive.

I would also like to thank you for and to acknowledge FAR SRS' contributions as an IFAC member body. FAR SRS has been an active participant in the international profession since IFAC's founding.