The accountancy profession is strongly linked to national economic growth and improved living standards, and it contributes USD $575 billion annually to the global economy, according to a report by the International Federation of Accountants^® (IFAC^®), the global organization for the accountancy profession.

Fayez Choudhury, IFAC Chief Executive Officer, said, “This report highlights the scale of the profession’s importance to the global economy. It confirms a particularly exciting economic opportunity in the rapidly developing Asian and South American regions. And the findings verify the profound importance of IFAC’s mission—and that of the global profession—to help strengthen accountancy capacity in developing countries, where accountants have a significant role to play in strengthening the institutions and architecture that will improve peoples’ lives.”

For the first time, IFAC has definitively linked a strong accountancy profession to improved living standards for citizens.

Launched at the Singapore Accountancy Convention today, Nexus 2: The Accountancy Profession—A Global Value Add, a study conducted by the independent Centre for Economics and Business Research (Cebr), found that:

• Global regions with a higher share of accountants in total employment have a higher per capita GDP.
• The correlation between the share of accountants in total employment and the UN Human Development Index (HDI) is even stronger. The HDI measures a number of indicators including life expectancy, years of schooling, and income.
• The global accountancy ecology—which includes members of IFAC professional accountancy organizations (PAOs) as well as people who identify their roles as accountancy or accountancy support—contributes an estimated $575 billion gross value added (GVA) annually to the global economy and, of this amount, IFAC PAO members contribute 43%.
• Highly developed countries in North America and Europe dominate the GVA of the global accountancy ecology; Asia’s contribution is third highest.
• There are 640,000 members of IFAC PAOs in Asia—but with an estimated 2.6 million accountants employed in Asia in 2013, a significant opportunity exists to strengthen the profession in a unified voice.

“Professional accountants contribute to better information, reporting, measurement and decision making. When nations have a robust system to track the flow of money in government, within businesses, and between organizations, transparency and accountability are improved, organizations are strengthened, and economies are enhanced,” Mr. Choudhury said.

A panel of leading regional and global figures in the accounting profession presented the report’s findings to an audience comprised of leaders in the public and private sectors.

Methodology
Cebr calculated the gross value added (GVA) of the accountancy sector using official datasets, or where data was poorer, by comparing average wages and then computing GVA per capita across the economy.

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. It is comprised of more than 175 members and associates in 130 countries and jurisdictions, representing over 2.8 million accountants in public practice, education, government service, industry, and commerce.

About Cebr:
Centre for Economics and Business Research Ltd (Cebr) is an independent consultancy with a reputation for sound business advice based on thorough and insightful research. Since 1992, Cebr has been at the forefront of business and public interest research, providing analysis, forecasts and strategic advice to major UK and multinational companies, financial institutions, government departments and agencies, trade bodies and the European Commission.

The International Integrated Reporting Council and IFAC released the publication, which offers guidance for preparing integrated reports. It supports the International Integrated Reporting <IR> Framework by explaining materiality, and the corresponding materiality determination process, in the context of integrated reporting. It also outlines expectations for materiality-related disclosures.

The International Federation of Accountants^® (IFAC^®), the global organization for the accountancy profession, today announced its new Board members and associates, decided at its annual Council Meeting.

Four members were elected to IFAC’s Board: Bill Balhoff (United States), Alan Johnson (United Kingdom), Terence Nomembe (South Africa), and Dr. Zhiguo Yang (China). The IFAC Council also re-elected: Carol Bellringer (Canada), Norunn Byrkjeland (Norway), Pamela Monroe Ellis (Jamaica), and Prof. In-Ki Joo (Republic of South Korea).

Welcoming the new Board members, IFAC President Olivia F. Kirtley said, “Through our global membership, IFAC represents nearly three million professional accountants who work in the public interest to strengthen organizations and enhance the global economy. The new and re-elected Board members represent the depth and breadth of the profession’s talent, as well as its diversity.”

The IFAC Council also voted to admit new associates from Africa and Asia:

• Ordre des Experts Comptables et Comptables Agréés du Burkina Faso (ONECCA-BF)
• The Vietnam Association of Certified Public Accountants (VACPA)

IFAC Chief Executive Officer Fayez Choudhury said: “It is with pleasure that we welcome, after a comprehensive admission process, these IFAC associates. Our new associate from Burkina Faso is the first professional accountancy organization from that country to join IFAC, while VACPA is the second organization to join from Vietnam. We welcome them into the global profession and look forward to working together to advance IFAC’s mission of supporting global economic growth and development.”

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. It is comprised of over 175 members and associates in 130 countries and jurisdictions, representing approximately 2.8 million accountants in public practice, education, government service, industry, and commerce.

During a recent UN Conference on Trade and Development International Standards of Accounting and Reporting (UNCTAD ISAR) event, IFAC Immediate Past President Warren Allen detailed the important relationship between the accountancy profession and achieving the Sustainable Development Goals.

The accountancy profession is a critical partner in many of the 17 SDGs, including:

• #4 Quality education
• #8 Decent work and economic growth
• #9 Industry, innovation, and infrastructure
• #12 Responsible consumption and production
• #13 Climate action
• #16 Peace, justice, and strong institutions
• #17 Partnership for the goals

IFAC’s role in international standard setting, the development and support of the global accountancy profession, and global advocacy on public interest issues are also key in seeing the SDGs succeed.

The IFAC SMP Committee is pleased to respond to the IAASB Exposure Draft: Proposed International Standard on Auditing (ISA) 810 (Revised) —Engagements to Report on Summary Financial Statements.

To facilitate the contribution of professional accountants to integrated thinking—and help align capital allocation, corporate behavior, financial stability, and sustainable development—the International Federation of Accountants^® (IFAC^®), the global organization for the accountancy profession, today published Creating Value with Integrated Thinking: The Role of Professional Accountants.

The thought paper sets out a vision for integrated thinking and explores what professional accountants working in the public and private sectors can do in practical terms to facilitate it in their organization, regardless of whether their organization is planning to publish an integrated report. It identifies five key elements, which, if implemented, can lead to more effective organizations. This ultimately provides the basis for shifting from today’s financially oriented reporting to integrated reporting.

“Integrated reporting continues to gain global momentum and help change the way businesses think about creating value over time. But it is integrated thinking that will ultimately change corporate behavior and lead to more resilient organizations and greater trust in business and government,” said IFAC CEO Fayez Choudhury. ”Professional accountants—as business partners involved in organizational leadership and decision support—can use integrated thinking as a means of engaging those beyond the finance and accounting departments to facilitate resilient organizations that create value over the short, medium, and long term.”

The thought paper reflects integrated thinking as we understand it today, given that this is a period of experimentation for many organizations. It explores what integrated thinking involves, as well as its challenges and how they can be overcome, and advances a meaningful understanding of its role and power. Notably, the publication also discusses how integrated reporting both improves and is improved by integrated thinking.

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. It is comprised of more than 175 members and associates in 130 countries and jurisdictions, representing approximately 2.8 million accountants in public practice, education, government service, industry, and commerce.

This thought paper helps facilitate the contribution of professional accountants to integrated thinking—and help align capital allocation, corporate behavior, financial stability, and sustainable development. It sets out a vision for integrated thinking and explores what professional accountants working in the public and private sectors can do in practical terms to facilitate it in their organization, regardless of whether their organization is planning to publish an integrated report. It identifies five key elements, which, if implemented, can lead to more effective organizations.

The Call for Nominations for the Independent Standard-Setting Boards in 2017 was issued today. The Call sets out the upcoming opportunities for membership on the International Auditing and Assurance Standards Board^® (IAASB^®), International Accounting Education Standards Board™ (IAESB™), International Ethics Standards Board for Accountants^® (IESBA^®), and International Public Sector Accounting Standards Board^® (IPSASB^®).

For 2017, there are 22 vacancies on the independent standard-setting boards. Vacancies on the boards are open for nominations by all stakeholders, including professional accountancy and international organizations, governmental agencies, firms, and the public. Nominations of non-accountants for the public member vacancies are strongly encouraged. Travel support is available to qualified candidates from developing nations, self-nominees, and public members.

Candidates should have knowledge of the subject matters considered by a particular board, as well as English proficiency.  Each board meets up to four times per year and the required time commitment is approximately 200 to 800 hours per year, depending on the board, including preparation and travel time.  Although each candidate will ultimately be selected based on experience, nominations of highly qualified candidates from Africa, Middle East, and Latin America are strongly encouraged. Nominations of female candidates are particularly welcome.

Nominations can be submitted through the Nominations Database. All nominations should be submitted before January 31, 2016.

To provide nominating organizations and nominees with some insights on the nominations process and the value of serving on the standard-setting boards, the following documents are available on the Nominating Committee webpage: Developing a Nominations Strategy, and Giving Back to the Profession: The Value of Serving.  

The Nominating Committee follows an open and transparent process to select the most suitable candidates for the available positions, while also aiming to achieve gender, regional, and professional balance. For more information about the Nominating Committee, its due process, or guidance in selecting the best candidate, please visit the Nominating Committee web page.

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 IAESB
The IAESB develops education standards and guidance for use by IFAC member organizations under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAESB, and the IAESB 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 IAESB are facilitated by IFAC.

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

About the IPSASB
The IPSASB develops accounting standards and guidance for use by public sector entities. It receives support (both direct financial and in-kind) from the World Bank, the Asian Development Bank, the Chartered Professional Accountants of Canada, the South African Accounting Standards Board, and the governments of Canada, New Zealand, and Switzerland. It receives advice from the Public Interest Committee, which promotes the public interest in the IPSASB’s standard-setting activities. The structures and processes that support the operations of the IPSASB are facilitated by IFAC.

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. It is comprised of more than 175 members and associates in 130 countries and jurisdictions, representing approximately 2.8 million accountants in public practice, education, government service, industry, and commerce.

“International Federation of Accountants,” “IFAC,” “International Auditing and Assurance Standards Board,” “IAASB,” “International Accounting Education Standards Board,” “IAESB,” “International Ethics Standards Board for Accountants,” “IESBA,” “International Public Sector Accounting Standards Board,” “IPSASB,”  the IAASB logo, the IAESB logo,  the IESBA logo, the IPSASB logo, and the IFAC logo are trademarks or registered trademarks of IFAC in the US and other countries.

The IFAC SMP Committee is pleased to respond to the IAASB Exposure Draft: Proposed Amendments to the IAASB’s International Standards—Responding to Non-Compliance or Suspected Non-Compliance with Laws and Regulations. The Committee supports the IAASB and IESBA working together to consider amendments to International Standards in response to the IESBA project on NOCLAR.

The International Federation of Accountants^® (IFAC^®), the global organization for the accountancy profession, today released an updated Companion Manual, which has been revised to include the recently launched Guide to Compilation Engagements. The Companion Manual provides member bodies and other professional accountancy organizations with guidance on how they can make the best use of four implementation guides produced by IFAC’s Small- and Medium-sized Practices (SMP) Committee: Guide to Quality Control for Small- and Medium-Sized Practices (QC Guide), Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities (ISA Guide), the Guide to Review Engagements, and the Guide to Compilation Engagements. This includes reproducing, adapting, translating, or incorporating the guides into continuing professional development (CPD) courses and/or training programs.

The Companion Manual also includes a new orientation PowerPoint slide deck on the Guide to Compilation Engagements to introduce users to the value and benefits of compilation engagements, key elements in the Guide, and highlights from a practitioner perspective. Member bodies may have access to the slides for use in training and CPD courses. Email permissions@ifac.org for access.

The four guides provide non-authoritative guidance on applying ISQC™ 1, ISA™, ISRE™ 2400 (Revised), and ISRS™ 4410 (Revised), developed exclusively by the International Auditing and Assurance Standards Board^® (IAASB^®), and are intended as a supplement to help practitioners apply the standards consistently and effectively when developing their quality control systems and performing audit, review, and compilation engagements for small- and medium-sized entities (SMEs). See the IAASB Handbook for access to the standards ISQC™ 1 ISA™, ISRE™ 2400 (Revised), and ISRS™ 4410 (Revised).

The Guides can be downloaded from the SMP area of the IFAC website.

Download the Companion Manual.