The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries, has opened nominations for the 2012 IFAC International Gold Service Award.

The IFAC International Gold Service Award was established in 2010 to recognize outstanding individual contributions to the accountancy profession, including protecting the public interest; exemplifying professional conduct and ethics; exceptional quality of work; and/or, contributions to a particular project or initiative. Candidates may or may not be members of the accountancy profession, and contributions may or may not be made through IFAC.

The recipients of the IFAC International Gold Service Award in 2011 were Sir David Tweedie (United Kingdom) and Professor Stephen Zeff (United States).The awards were presented on November 16, 2011, at IFAC’s annual Council Meeting in Berlin, Germany, by Göran Tidström, president of IFAC.

Nominations from IFAC member bodies must be submitted to the chief executive officer of IFAC by March 15, 2012. The nomination should consist of a completed nomination form, available on the IFAC website, and a cover letter. The cover letter should include reasons why the member body believes that the individual should receive an award and must be signed by the president and/or chief executive, or their equivalents, of the member body. If a member body wishes to include other supporting material, it should not exceed two pages. Nominations received in a format other than the stipulated form will not be considered.

In addition to nominations from IFAC member bodies, IFAC’s Nominating Committee will identify and recommend candidate(s) for this award. The Nominating Committee will review the nominations, make the necessary inquiries, and recommend candidate(s), if appropriate, to the IFAC Board, which will make the final selection(s), if any, during its meeting in June 2012. The chief executive officer of IFAC will notify the selected candidate(s) in writing, and the president of IFAC will present the award(s) at the annual IFAC Council Meeting, to be held November 14-15, 2012.

About IFAC
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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries, has issued an announcement to alert its members, Forum of Firms, other international organizations and the general public of its Call for Nominations for IFAC Boards and Committees in 2013 .

For the first time, all vacancies on the public interest activity standard-setting boards* are open for nominations by the public. This change is due to IFAC’s determination to ensure a transparent approach to filling available positions, while also achieving gender, regional, and professional balance, and is in response to the Monitoring Group’s 2010 effectiveness review of the IFAC Reforms.

“The caliber of the volunteer members on our boards and committees is what makes these groups so effective. That is why seeking high-quality nominations is at the core of our nominations processes,” said IFAC President Göran Tidström. “We aim to attract a wide variety of high-quality nominations, to ensure that we have a rich pool from which to find the right candidate for each position. We thank our member bodies and the public in advance for the thoughtful and valuable nominations we anticipate receiving this year.”

Both the Call for Nominations and its companion guide, Developing a Nominations Strategy, are designed to help IFAC stakeholders identify the most qualified person for nomination to each available position on the boards and committees. These in-depth documents, located on the IFAC website, contain strategic and practical advice for nominating organizations and other individuals that allows them to make more informed decisions in their selections and decisions, and to understand the requirements of the various positions.

Each year, approximately one-third of the 155 positions on the boards and committees have openings, though, for some of those positions, serving members may be reappointed. In addition, this year, the position of the IFAC Deputy President is open for nominations from member bodies. For more information about the Nominating Committee, its due process, or for guidance in selecting the best candidate, please visit the IFAC website.

All applications should be submitted before March 15, 2012 electronically via IFAC’s nominations database; instructions are provided on page six of the Call for Nominations.

About IFAC

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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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* The public interest activity standard-setting boards include the International Accounting Education Standards Board, the International Auditing and Assurance Standards Board, and the International Ethics Standards Board for Accountants.

The Board of the International Federation of Accountants recently approved proposed revisions to the Statements of Membership Obligations (SMOs) to be released for public comment. The SMOs form the basis of the IFAC Member Body Compliance Program. They serve as a framework for credible and high-quality professional accountancy organizations focused on serving the public interest by adopting, or otherwise incorporating, and supporting implementation of international standards and maintaining adequate enforcement mechanisms to ensure the professional behavior of their individual members.

The SMOs are issued under the IFAC Board’s authority, and the Compliance Advisory Panel (CAP), together with IFAC Compliance staff, is responsible for reviewing their continuing relevance and sufficiency.

“Since the SMOs were established seven years ago, the regulatory and standard-setting environments in which IFAC members and associates operate have further evolved. As a result, revisiting the SMOs was necessary to reflect those developments and their impact on the global profession,” explained Manuel Sanchez y Madrid, chairman of the CAP. “We redrafted the SMOs to clarify what is expected of IFAC members when they have varying degrees of responsibility for an SMO area. We also brought the SMOs in line with IFAC’s current strategic focus on adoption and implementation of international standards. In the revision project, we were guided by years of experience with the Compliance Program. We looked at how the SMOs have been interpreted and how the compliance assessment is performed by IFAC staff. As a result, I believe the proposed revised SMOs are easier to understand and apply.”

The SMOs and the Compliance Program are designed to assist IFAC in its mission of strengthening the global accountancy profession. The revised SMOs better articulate the obligations of IFAC membership, and the Compliance Program encourages IFAC members and associates in their ongoing efforts to achieve a higher quality of service.

How to Comment
The IFAC Board and the CAP invite all stakeholders to comment on the proposed revisions. To access the Exposure Draft and submit a comment, visit the IFAC website. Comments on the Exposure Draft are requested by March 5, 2012.

About the IFAC Member Body Compliance Program
IFAC members and associates are required to participate in the IFAC Member Body Compliance Program to demonstrate that they are maintaining their good standing and addressing the requirements of IFAC membership. The Program is the responsibility of the IFAC Compliance Staff, reporting to the Chief Executive. The program is overseen by the Compliance Advisory Panel, which—as one of IFAC's public interest activities—is overseen by the Public Interest Oversight Board (PIOB).

About IFAC
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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries, today commented on the European Commission (EC)’s proposed legislation, issued this week.

IFAC supports initiatives to continually improve audit quality, enhance the role of audit, and safeguard auditor independence, and believes that innovation and evolution are essential for this vital service to maintain its relevance and meet the needs of investors and other stakeholders. As such, IFAC supports the following measures proposed by the EC, which we believe are consistent with views widely expressed in response to the Green Paper:

Compliance with International Standards on Audit (ISAs). This is a significant step forward in convergence to high-quality international standards, which facilitate transparency, consistency, economic growth, and financial stability. IFAC notes that ISAs are designed for audits of entities of all sizes, and are capable of being applied in a manner proportionate with the size and complexity of an entity.

Strengthening of audit committees. Mechanisms and processes required to provide greater roles and responsibilities for audit committees in the spirit of ensuring their independence and technical competence. 

Enhanced dialogue between auditors and regulators. Stronger two-way communication between statutory auditors and oversight bodies supervising public interest entities and regulatory institutions, particularly in the financial services sector, will help in identifying and managing key risks, including systemic risks, and address audit issues that may arise beyond the formal components of the reporting process.

Greater transparency in auditor selection. Greater transparency in the appointment of statutory auditors and firms will enable greater insight for stakeholders into the selection processes, requirements, and expectations.

Greater cross-border mobility for auditors. Legal mechanisms to enable auditors to practice in multiple jurisdictions, including the creation of the European passport, in line with the move toward global regulatory convergence.

Enhanced auditor report.  While the ideal future content and format is not clear, IFAC supports the need to review the auditor report. The International Auditing and Assurance Standards Board has recently issued a consultation paper seeking broad stakeholder views on enhancing the quality, relevance and communicative value of auditor reporting on an international basis. 

However, there are several proposals that IFAC does not support, because there is not sufficient evidence that they will have a positive impact on auditor independence and audit quality, and that the benefits will outweigh the risks and costs. IFAC believes that further research should be conducted to support their feasibility and impact. These include:

Mandatory firm rotation.  Firm rotation puts sustainable, established relationships at risk rather than encouraging trust, longevity, and knowledge capital between client and firm. However, for public interest entities, IFAC does support mandatory partner rotation after a fixed period of time.

Prohibition of non-audit services. Independence is critical, and IFAC supports the independence framework described in the Code of Ethics for Professional Accountants. IFAC’s view is that, in performing both audit and non-audit services, audit firms obtain complementary knowledge and competence that ensures each of these services—such as tax services—can be provided efficiently and to the expected quality.

Further, IFAC believes that the proposed legislation, if passed by Parliament in its current form, could have a negative impact on the audit profession and professional accountancy organizations (PAOs). In particular:

PAOs’ role in audit oversight arrangements. Currently, in many countries, PAOs have been delegated an important role in regulation, continuing education, discipline, and other areas, and there is an appropriate balance between independent oversight and PAO support. Expertise and infrastructure have been established to support these areas; changes are unnecessary and will require rebuilding infrastructure.

Extraterritorial impacts. IFAC is concerned that the proposals will provide significant problems for global public interest entities (PIEs) that require global audit services. IFAC does not believe that requiring firms of a certain size to provide only audit services will enhance global quality and service capability of the profession. It therefore urges that the Parliament consider the implications legislative changes will have for non-European Union states and the global market for audits of multinational companies. 

Finally, IFAC’s view is that a number of the proposals in the proposed legislation were not widely supported by the responses to the EC Green Paper earlier this year.

IFAC responded to the European Commission (EC) Green Paper on Audit Policy: Lessons from the Crisis in December 2010.

About IFAC
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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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Over 60 representatives from 12 Commonwealth of Independent States (CIS) and Baltic countries met with leadership and staff of the International Auditing and Assurance Standards Board (IAASB), the International Accounting Standards Board (IASB), and the International Federation of Accountants (IFAC) to discuss adoption and implementation of International Standards on Auditing (ISAs) and International Financial Reporting Standards (IFRSs).

The event—jointly hosted by IFAC and the International Financial Reporting Standards Foundation (IFRS Foundation) on November 28 and 29, 2011, in London, with the support of the Institute of Chartered Accountants of England and Wales (ICAEW)—was an excellent example of the constructive cooperation in regard to the development, adoption, and implementation of high-quality auditing, assurance, and financial reporting standards. The event involved a series of meetings to discuss areas of particular interest for each country delegation, including translation and adoption of standards and membership of IFAC. These meetings were preceded by a half-day seminar with presentations by key IAASB and IASB members. The event was attended by representatives from Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyz Republic, Latvia, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan. Delegates included IFAC member bodies and associates, professional accountancy organizations, national standard setters, ministries of finance, regulators and securities market authorities, national banks, donor organizations, and other key stakeholders. The meeting was convened under the leadership of Mr. David Damant, former chair of the IAASB Consultative Advisory Group and former board member of the International Accounting Standards Committee (predecessor to the IASB).

During his presentation on the IAASB’s activities, Chairman Arnold Schilder spoke about development of audit and assurance standards and audit quality. He said, “In developing high-quality audit standards, achieving effective implementation, and enhancing audit quality, we need to have a strong dialogue and cooperation with users and with regulators.” Prof. Schilder highlighted the constructive relationship between the IAASB and the IASB, and gave examples of this cooperation, including mutual attendance at meetings and commenting on relevant exposure drafts. Prof. Schilder also discussed the activities of the IAASB to respond to the needs of small- and medium-sized entities (SMEs); current initiatives in areas including auditor reporting, reviews and compilation engagements, disclosures, and reporting on greenhouse gases; possible future efforts addressing professional skepticism and proportionality of International Standard on Quality Control 1; and the IAASB’s monitoring of emerging developments on integrated reporting. 

Jon Grant, IAASB member, discussed the adoption and implementation of the ISAs and some key success factors, including effective planning, cooperation with relevant stakeholders, and high-quality translations.

IASB Vice Chair Ian Mackintosh presented an overview of the IASB’s current work plan and its ongoing consultation on the future agenda. Over 100 countries now require or permit the use of IFRSs. Russia is expected to adopt IFRSs in the very near future. Mr. Mackintosh also discussed the recently signed Memorandum of Understanding between the IASB and IFAC, which outlines the bodies’ commitment to continue to work together and further their constructive dialogue.

Wei-Guo Zhang, IASB member responsible for the relationship with the CIS, discussed ongoing IASB projects in the areas of revenue, leases, financial instruments, and insurance. 

Paul Pacter, IASB member, informed the group about the IFRS for SMEs. Released in 2009, this self-contained International Financial Reporting Standard is designed to meet the needs and capabilities of SMEs.  To date more than 70 jurisdictions have adopted the standard.

About the IAASB
The IAASB develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by IFAC.

About the IASB
The IASB was established in 2001 and is the standard-setting body of the IFRS Foundation, an independent, private sector, not-for-profit organization. The IASB is committed to developing, in the public interest, a single set of high quality global accounting standards that provide high quality transparent and comparable information in general purpose financial statements. In pursuit of this objective the IASB conducts extensive public consultations and seeks the co-operation of international and national bodies around the world. The IASB has 15 full-time members drawn from 11 countries and a variety of professional backgrounds. By July 2012 the Board will be expanded to 16 members. Board members are appointed by and accountable to the Trustees of the IFRS Foundation, who are required to select the best available combination of technical expertise and diversity of international business and market experience. In their work the Trustees are accountable to a Monitoring Board of public authorities. For more information visit www.ifrs.org.

About IFAC
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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries, today participated in the signing ceremony of MOSAIC: Memorandum of Understanding to Strengthen Accountancy and Improve Collaboration, a memorandum of understanding (MOU) with the international donor community.

MOSAIC sets out the basis for improving cooperation and collaboration between IFAC, international donors, and the international development community. The MOU will provide the foundations for increasing the capacity of professional accountancy organizations (PAOs) and improve the quality of financial management systems in emerging economies.

IFAC Deputy President Warren Allen spoke at the event, calling the MOU “a significant step forward” for IFAC, the international donor community, and international organizations. “MOSAIC will help our organizations to align activities, focus on building the capacity of PAOs, and contribute to stronger systems of public financial management.” Speaking after the signing, Mr. Allen said, “Strong PAOs develop and support individual professional accountants in providing high levels of expertise, transparency, and accountability in the production of financial information—this is critical to decision making in both the public and private sectors and, thereby, supporting economic growth and stability.”

In addition to IFAC, signatories to the MOU include the Asian Development Bank, Inter-American Development Bank, African Development Bank, World Bank, and donor agencies from Sweden, Finland, the United States, the United Kingdom, New Zealand, and the GAVI Alliance.

“This MOU fully recognizes the crucial role of the accountancy profession in development and, in particular, the unique contributions and perspectives that IFAC and its members bring to public and private sector financial management issues,” said Joachim von Amsberg, vice president of Operations Policy and Country Services at the World Bank. “High-quality financial management, reporting, accounting, and auditing help attract foreign direct investment, growth and development of the SME sector, enhance transparency and accountability, development and delivery of public services, and enhance the effectiveness of foreign aid. All of these factors contribute to economic growth and, ultimately, poverty alleviation.”

The signing ceremony took place in Busan, South Korea, at the Fourth High Level Forum on Aid Effectiveness, hosted by the Organisation for Economic Co-operation and Development and convened to review global progress in improving the impact and value for money of development aid and to make new commitments to further ensure that aid helps to reduce poverty and support progress in meeting the Millennium Development Goals.

The MOU and a list of signatories are available on the IFAC website as are Mr. Allen’s remarks.

About IFAC

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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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On November 30, 2011, IFAC and members of the international development community signed MOSAIC: Memorandum of Understanding to Strengthen Accountancy and Improve Collaboration. MOSAIC sets out the basis for improving cooperation and collaboration between IFAC, international donors, and the international development community. The Memorandum of Understanding will provide the foundations for increasing the capacity of professional accountancy organizations and improve the quality of financial management systems in emerging economies.

The signing ceremony brought together a variety of interests, exhibiting the quality of mutual partnership intended by the wider High Level Forum (from which the New Global Partnership for Effective Development Co-operation emerged). There was a real sense of a deep understanding of the role and value of the MoU to effective development and to effective cooperation between interested parties.

Brian Atwood from the OECD DAC spoke eloquently about the significance of the profession to development across both the public and private sectors and its place in essential infrastructure. He was joined by Warren Allen from IFAC (speech attached below) and Joachim von Amsberg from the World Bank who echoed the importance of this step for both the profession and development partners.

Fredson Yamba from the Zambian Treasury spoke movingly about the rapid growth of a high quality accountancy profession following the formation of the Zambian Institute 30 years ago and its essential place both in government and in the private sector. He was followed by Terence Nombembe who highlighted the value of the parallel MoU which the donor community has with INTOSAI for strengthening supreme audit institutions around the world.