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IFAC

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IFACStrengthening Organization

Advancing Economics

IFAC refers to the International Federation of Accountants.

It 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.

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History of IFACFormation 07 October 1977 in Munich, Germany, at the 11th World Congress of Accountants

Type :INGO

Legal status :Association established under Swiss Civil Code

Purpose :Strengthening the worldwide accountancy profession

Headquarters :New York City, United States

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History of IFACLocation Geneva, Switzerland

Region served Beginning 51 but now 130 countries and jurisdictions worldwide

Members Beginning 63 but now 175

Official language English

CEO Fayezul Choudhury (From 2013 to present)

Main organ Council

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President of IFAC

IFAC is led by its President, who is nominated by a member body and appointed by the IFAC Council. From its foundation it has been presided by 17 presidents.

The First president was Reinhard Goerdeler, Germany (1977–1980)

The present president is Olivia Kirtley.(2014 to present)

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Mission of IFAC

IFAC serves the public interest and strengthens the accountancy profession by:

Supporting the development of high-quality international standards.Promoting the adoption and implementation of these standards.Building the capacity of professional accountancy organizations. Speaking out on public interest issues.

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Vision of IFAC

The global accountancy profession be recognized as essential to strong and sustainable organizations, financial markets, and economies.

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IFAC Strategic Plan for 2016-2018

Charting the Future of the Global Profession

This strategic plan for 2016-2018 aims to prepare the global accountancy profession for the inevitable turbulence and corresponding opportunities, while highlighting the unique position and economic benefits of IFAC’s activities.Building on the 2015 strategic plan, which explains how IFAC plans to maximize opportunities and minimize risk, Charting the Future of the Global Profession responds to macro trends with significant implications for the profession and outlines IFAC’s planned activities in response

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The promulgation of International Standards.

Features independent boards for education & public sector accounting.

Serves as an international model.

IFAC includes the organizing of the World Congress of Accountants.

Functions of IFAC

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Roles of professional Accountants on Business

Governing the organization (such as, approving annual budgets and accounting to the stakeholders for the company’s performance)

Appointing the chief executive; and determining management’s compensation

Oversight over all matters relating to the company’s financial health

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Roles of professional Accountants on Business(cont.)

Protectors of public interests.

Provide independent assurance to management.

Competing Demands .

Evolving role in evolving an environment

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Recent Developments

to revise terminology in addition to improving clarity.

to make some significant alterations to the Auditor Independence Process.

The codes of the International Federation of Accountants have been revised recently. The new changes in IFAC are:

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Reports Call for Nominations for the IFAC Board and Committees in 2018

Published: Nov 22, 2016 Related: IFAC Guidance & Support Tools

The Accountancy Profession: Fighting Fraud and Corruption Open Letter to His Holiness Pope Francis.

Published: Nov 17, 2016

Related: Build Trust

IFAC Response to the PIOB Consultation


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Reports (cont.)

The 2030 Agenda for Sustainable Development .A Snapshot of the Accountancy Profession's Contribution


IFAC Professional Accountants in Business Committee. Response to COSO's Enterprise Risk Management Exposure Draft

Published: Oct 10, 2016

Related: risk management & internal control

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Reports (cont.) PAIB Committee Response to the IESBA Proposed Changes to the Code of Ethics for Professional

Accountants Addressing Conflicts of Interest

Published: Mar 30, 2012

Related: business ethics, PAIB

Evaluating and Improving Internal Control in Organizations. International Good Practice Guidance

Published: Jun 28, 2012

Related: risk management & internal control, PAIB, International Good Practice Guidance

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Standard Setting Boards of IFAC

International Auditing and Assurance Standards Board or IAASB.

International Ethics Standards Board for Accountants or IESB.

International Public Sector Accounting Standards Board or IPSASB.

International Accounting Education Standards Board or IAESB.

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International Auditing and Assurance Standards Board

The International Auditing and Assurance Standards Board or IAASB is an independent standard-setting board that develops the international of auditing. IAASB issues International Standards on Audit covering various services offered by professional accountants worldwide like auditing, review, other assurance, quality control and related services.

The IAASB's current strategic themes include:

1. Supporting global financial stability Enhancing the role,

2. relevancy and quality of assurance in an evolving world

3. Facilitating adoption and implementation of the standards it sets

The Public Interest Oversight Board (PIOB) oversees the work of the IAASB and its CAG( Consultative Advisory Group) to ensure that the activities of the IAASB follow due process and are responsive to the public interest.

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Consultative Advisory Group (CAG)

The IAASB Consultative Advisory Group (CAG) is an integral and important part of the IAASB's formal process of consultation. Representatives of CAG member organizations provide advice on numerous areas, including:

The IAASB's agenda and project timetable (work program), including project priorities;

Technical projects; and

Other matters of relevance to the activities of the IAASB.

The CAG's objective and scope of activities, membership and composition, and operating procedures are set out in its Terms of Reference. The Public Interest Oversight Board (PIOB) oversees the work of the CAG

http://www.iaasb.org/download/IAASB-Amended_CAG_Terms_of_Reference.pdf

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Public Interest Oversight BoardCreation of the PIOB in 2005 was triggered by a series of corporate scandals including the collapse of Enron and WorldCom in the United States and of Parmalat in Europe. These undermined public confidence in the conduct and competence of audit practitioners, leading to demand for an overhaul of the IFAC including an independent oversight body to ensure that all standards are in the public interest.

The PIOB oversees the public interest activities of three independent standard-setting boards supported by IFAC: the International Auditing and Assurance Standards Board (IAASB), the International Accounting Education Standards Board (IAESB) and the International Ethics Standards Board for Accountants(IESBA). The PIOB also oversees the IFAC's Compliance Advisory Panel.

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International Ethics Standards Board for Accountants

The International Ethics Standards Board for Accountants develops a Code of Ethics for Professional Accountants to be followed by professional accountants throughout the world. The IESBA periodically issues revised standards. In 2016 the IESBA issued a revised Code of Ethics for Professional Accountants to be effective from July 15, 2017.

The board also provides adoption and implementation support, promotes good ethical practices globally, and fosters international debate on ethical issues faced by accountants

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International Ethics Standards Board for Accountants

The Strategy and Work Plan lays out four inter-connected strategic themes that articulate the board’s vision over the medium to longer term:

maintaining a high quality Code of Ethics for Professional Accountants (the Code) for application by professional accountants globally;

promoting and facilitating the adoption and effective implementation of the Code;

evolving the Code for continued relevance in a changing global environment; and

increasing engagement and cooperation with key stakeholders.

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International Public Sector Accounting Standards Board

The International Public Sector Accounting Standards Board or IPSASB develops the International Public Sector Accounting Standards (IPSAS). IPSAS’s are a set of accounting standards for use by public sector entities around the world in the preparation of financial statements.

IPSAS aims to improve the quality of general purpose financial reporting by public sector entities, leading to better informed assessments of the resource allocation

These standards are based on International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).

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International Public Sector Accounting Standards Board

The IPSASB’s forward strategy from 2015 has a single strategic objective:

Strengthening public financial management and knowledge globally through increasing adoption of accrual-based International Public Sector Accounting Standard

Developing high-quality public sector financial reporting standards

Developing other publications for the public sector; and

Raising awareness of the IPSASs and the benefits of their adoption.

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Features of International Public Sector Accounting Standards Board

There are 38 standards on the accrual basis of accounting and one standard on the cash basis of accounting (source: IPSAS Handbook published March 2011).

When the accrual basis of accounting underlies the preparation of the financial statements the financial statements will include:

the statement of financial position

the statement of financial performance

the cash flow statement

the statement of changes in net assets/equity

the notes to the financial statements , or annex.

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IPSAS Adoption by BangladeshThe government of Bangladesh has expressed both commitment and willingness to adopt the cash basis IPSAS. Bangladesh has also taken an initiative to prepare the financial statements in accordance with the cash basis IPSAS. The first set of IPSAS based statements for the core ministries (excluding specialized organizations) and the specialized organizations are planned to be produced by the fiscal year 2007-2008 and 2009-2010 respectively.

The government considers the adoption of the cash basis IPSAS a point of departure towards implementing the accrual basis of accounting in the long run.

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International Accounting Education Standards Board

The International Accounting Education Standards Board (IAESB) is an independent organization within the fold of the International Federation of Accountants (IFAC). The board develops guidance to improve standards of education in accountancy.

The main areas of focus are the key elements of accreditation and the requirements of accountants for continuing professional education. The board also sponsors studies or papers about accounting education that promote discussion and debate on accounting education and development issues.

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International Accounting Education Standards Board

The IAESB’s objective is to serve the public interest by:

Establishing a series of high-quality standards and other publications reflecting good practice in the education, development, and assessment of professional accountants;

Promoting the adoption and implementation of the International Education Standards;

Developing education benchmarks for measuring the implementation of the International Education Standards; and

Advancing international debate on emerging issues relating to the education, development, and assessment of professional accountants.

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Other Bodies

In addition to the standards boards, IFAC also features the following bodies:

The Compliance Advisory Panel the Developing Nations Committee.

The Nominating Committee.

The professional Accountants in Business Committee.

The Small and Medium Practices Committee.

The Trans-national Auditors Committee.

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Criteria for Becoming a MemberThe IFAC Board has the authority and responsibility for determining the criteria and procedures by which organizations are admitted as Members of IFAC.Admission Process:IFAC staff guide candidate PAOs in the admission process with the advice and oversight of the IFAC Compliance Advisory Panel (CAP) . The admission process includes:

1. An initial expression of interest by the PAO (professional accountancy organization )and the establishment of an ongoing dialogue with IFAC

2. Developing an understanding of the IFAC admission criteria and the IFAC Statements of Membership Obligations (SMOs);

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Criteria for Becoming a Member(cont.)

3. Completing an initial SMO Action Plan, with guidance from IFAC;

4. Seeking sponsorship from an existing IFAC Member;

5. Submitting application package materials, sponsor’s report, and an application fee;

6. IFAC’s assessment of the PAO and application materials; and

7. Consideration of the application by the Compliance Advisory Panel and IFAC Board followed by vote by the IFAC Council.

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Some selected Members of IFAC

BangladeshInstitute of Chartered Accountants of Bangladesh(ICAB)

Institute of Cost and Management Accountants of Bangladesh(ICMAB)

IndiaInstitute of Chartered Accountants of India(ICAI)

Institute of Cost Accountants of India(ICAI)

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PakistanInstitute of Chartered Accountants of Pakistan(ICAP)

Institute of Cost and Management Accountants of Pakistan(ICMAP)

Sri LankaInstitute of Chartered Accountants of Sri Lanka(ICASL)

NepalInstitute of Chartered Accountants of Nepal(ICAN)

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ChinaChinese Institute of Certified Public Accountants(CICPA)

CanadaCanadian Institute of Chartered Accountants (CICA)

Certified General Accountants Association of Canada(CGA-Canada)

AustraliaChartered Accountants Australia and New Zealand(CAANZ)


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United KingdomAssociation of Accounting Technicians(AAT)

Association of Chartered Certified Accountants(ACCA)Chartered Institute of Management Accountants(CIMA)

United StatesAmerican Institute of Certified Public Accountants(AICPA)

Institute of Management Accountants(IMA)


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Value of Membership

IFAC is comprised of over 175 Members and Associates in over 130 countries and jurisdictions*, representing almost 3 million accountants in public practice, education, government service, industry, and commerce. IFAC Members and Associates are professional accountancy organizations (PAOs) recognized by law or general consensus within their countries as substantial national organizations.

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Become part of the global voice of the profession; Obtain access to information, resources, and support to help strengthen the profession locally,

regionally, and nationally; and Provide input on critical global issues and contribute to the global agenda.

In addition to the above, IFAC Members influence the operations, strategy, leadership, and membership of IFAC by voting on many different matters during all IFAC Council meetings.

IFAC Member and Associate status brings with it a great deal of value. Members and Associates:

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Recent Activities of IFAC Enhanced Reporting Policy Position Paper Updated; Focuses on Importance of Integrated

Reporting. Jan 10, 2017

IPSASB Staff Issue Emissions Trading Schemes Background Paper. Jan 09, 2017

Speeches & Presentations by Sanjay Rughani, CEO, Standard Chartered Bank Tanzania, and Deputy Chair, IFAC Professional Accountants in Business Committee.

Dec 02,2017

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Recent Activities of IFAC (cont.)

IFAC Announces Rachel Grimes of Australia as IFAC President. Nov 22, 2016

Accountancy Profession Leaders Sought for Volunteer Positions on IFAC Board and Committees.

Nov 22, 2016

IFAC President Responds to Pope Francis' Call to Action. Nov 17, 2016

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Overview of IFACIFAC Provides structures and processes that supports the development of high quality international standards .

In the area of Auditing, Assurance& quality control.

Public Sector Accounting

Accounting education.

Ethics.

IFAC Supports

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IFAC develops and provides Internationally recognized standards, that is helpful for both private & public sector.

IFAC also provides some tools and guidance. Such as ISA Modules, Practice management, Sustainability framework etc.

IFAC also provides regulation & public policy.

IFAC supports four standards setting boards. They are IAASB, IAESB, IPSASB & IESBA.

Overview of IFAC (cont.)