With the increased volatility in the modern business environment and continuing effects of the financial and economic crises, effective management of risk in organizations—including good internal control—has taken on even greater importance. Effective management of risk helps organizations achieve their objectives, while complying with legal, regulatory, and societal expectations, and enables them to better respond and adapt to surprises and disruptions.

With these key issues in mind, the International Federation of Accountants^® (IFAC^®) today published a thought paper, From Bolt-on to Built-in, on managing risk as an integral part of managing an organization.

The paper positions the management of risk as an indispensable and integral part of decision making and subsequent execution in order for boards and management to ensure their organization makes the best decisions and achieves its objectives. The paper also a) demonstrates the benefits of properly integrating the management of risk, including internal control, into the governance, management, and operations of an organization; b) provides ideas and suggestions on how such integration can be achieved; and c) furnishes practical examples of how professional accountants in business can support their organizations with this integration.

“This paper recognizes what risk management was originally intended to do for an organization—help support effective decision making and improve performance,” said IFAC CFO Fayez Choudhury. “Too many organizations don’t realize how useful risk management can be if integrated properly. Without this step—building risk management into your organization—too many management teams are missing the point, and missing the benefits.”

The thought paper is applicable to all organizations—regardless of size or structure, public or private—seeking to improve how they manage risk.

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 2.5 million accountants in public practice, education, government service, industry, and commerce.

Effective management of risk helps organizations achieve their objectives, while complying with legal, regulatory, and societal expectations, and enables them to better respond and adapt to surprises and disruptions. This paper positions the management of risk as an indispensable and integral part of decision making and subsequent execution in order for boards and management to ensure their organization makes the best decisions and achieves its objectives.

The Wall Street Journal mentioned IFAC and Accountability. Now. coalition partners in an article on the increasing support for International Public Sector Accounting Standards (IPSAS) and the benefits of the Eurozone adopting IPSAS.

Access the article from WSJ.com: Europe Slow to Adopt New Accounting Standard Despite Greek Crisis

La Federación Internacional de Contadores^® (IFAC^®) ha publicado la versión en español de los siguientes documentos desarrollados para Contadores Profesionales en Empresas (PAIB):

• Marco Internacional: Buen gobierno en el sector público (ver documento completo)
• Marco Internacional: Buen gobierno en el sector público (ver resumen ejecutivo)
• Competente y Versátil: Cómo los Profesionales de la Contabilidad en Empresas Impulsan el Éxito Sostenible de las Organizaciones (ver documento completo)
• Competente y Versátil: Cómo los Profesionales de la Contabilidad en Empresas Impulsan el Éxito Sostenible de las Organizaciones (folleto del empleador)

La publicación Marco Internacional: Buen Gobierno de la Entidad en el Sector Público fue elaborada en conjunto entre IFAC y el Colegiado de Finanzas Públicas y Contabilidad (CIPFA por sus siglas en inglés), para mejorar y promover el gobierno efectivo en el sector público. El Marco promueve un mejor gobierno y gestión de las entidades en el sector público optimizando la toma de decisión y el uso eficiente de los recursos. Una mayor participación de las partes interesadas, un control estricto, y la supervisión de aquellos encargados de la responsabilidad principal frente a la definición de la dirección estratégica, las operaciones y la responsabilidad de una empresa, son aspectos que generan intervenciones más efectivas y mejores resultados para el público en general.

Competente y Versátil brinda apoyo a la profesión contable global, respondiendo a las expectativas cambiantes de la sociedad, los mercados financieros y las organizaciones, y promueve en las organizaciones el valor de los contadores profesionales en empresas. Dado que las necesidades organizacionales están evolucionando más rápido que nunca, los contadores profesionales deben adaptarse a estos cambios para poder ofrecer los mejores servicios a sus empleadores, y conservar la relevancia y confianza pública. Con esta publicación, el Comité de Contadores Profesionales en Empresas pretende brindar apoyo a la profesión contable global y ayudar a sus miembros a guiar a sus organizaciones en la creación de valor sostenible.

Estas traducciones al español son producto del marco de cooperación iberoamericana, conocido como el proyecto IberAm. Creado en el 2012, el proyecto IberAm—que incluye a la IFAC y sus organismos miembros Instituto de Censores Jurados de Cuentas de España, Federación Argentina de Consejos Profesionales de Ciencias Económicas y el Instituto Mexicano de Contadores Públicos—cuenta con la autorización de la IFAC para realizar traducciones y revisiones, con el objeto de alcanzar procesos sostenibles a largo plazo para traducciones únicas de alta calidad al español de los estándares internacionales y otras publicaciones de la IFAC. La Asociación Interamericana de Contabilidad, la organización regional de la IFAC para Latinoamérica y el Caribe, actúa como observador del proyecto. Adicionalmente, el proyecto involucra a un Comité de Revisión de expertos técnicos que representan a los organismos miembros de la IFAC en nueve países hispanoparlantes.

Seguiremos compartiendo otras traducciones al español de las publicaciones de IFAC.

Para acceder al resumen de las traducciones de las publicaciones IFAC, favor visitar la Base de datos de traducciones de la IFAC.

Acerca de la IFAC
La IFAC es la organización global para la profesión contable, dedicada a servir el interés público a través del fortalecimiento de la profesión y contribuir en el desarrollo de economías internacionales sólidas. La IFAC se compone de 175 miembros y asociados en 130 países y territorios, representando aproximadamente a 2,5 millones de contadores en la práctica pública, la educación, el gobierno, la industria y el comercio.

Acerca del Comité de PAIB
El Comité de PAIB trabaja para los organismos miembros de la IFAC y los contadores profesionales alrededor del mundo que se desempeñan en los sectores del comercio, la industria, los servicios financieros y la educación, además de los sectores públicos y sin ánimo de lucro. Su objetivo consiste en promover y contribuir en el valor de los contadores profesionales en empresas, creando mayor consciencia sobre los importantes roles que desempeñan los contadores profesionales, brindando apoyo a los organismos miembros para mejorar la competencia de sus integrantes, facilitando la comunicación y compartiendo las buenas prácticas e ideas.

The Institute of Cost Management Accountants of Pakistan recently held a webinar with IFAC Senior Technical Manager, Vincent Tophoff, on good governance, risk management, and internal control. 

En la encuesta global 2014 de la IFAC para las firmas pequeñas y medianas (SMP), se realizaron varias preguntas a profesionales ejercientes en firmas pequeñas y medianas (SMP) acerca de los desafíos que enfrentan, las tecnologías y factores del mercado que más probablemente los afecten en el futuro, los servicios de consultoría que proporcionan y sus resultados, tanto para 2014 como para la proyección del próximo año.

As part of ongoing efforts to promote the adoption and support implementation of international standards in accounting, auditing, ethics, and education, and the establishment of related quality assurance and investigation and discipline mechanisms, the International Federation of Accountants^® (IFAC^®) today released the Proposed IFAC Member Body Compliance Strategy, 2016-2018.

This proposed strategy incorporates fundamental upgrades to monitoring and reporting mechanisms. It will help professional accountancy organizations (PAOs) meet the IFAC Statements of Membership Obligations (SMOs), highlight adoption efforts in their jurisdictions, and help all global stakeholders understand adoption status, as well as improvements or setbacks, on a timely basis.

“Following more than ten successful years of the IFAC Member Body Compliance Program, the new strategy represents a turning point,” according to Fayez Choudhury, IFAC CEO. “The proposed changes to the Program, including the creation and publication of Dashboard Reports, will increase the accessibility and usability of relevant and up-to-date information, as well as leverage the Program's value as a global source of knowledge on the status of adoption of international standards and best practices by jurisdictions.”

The Program serves the public interest by promoting the adoption and supporting implementation of international standards. It influences the actions and drives the behaviors of IFAC member bodies around the world by focusing attention and resources on the role of PAOs in improving the quality of the accountancy profession, thereby supporting the IFAC mission and strengthening public confidence in the global profession.

In developing the strategy, the IFAC Compliance Advisory Panel (CAP) and IFAC staff follow an agreed-upon due process under the oversight of the Public Interest Oversight Board (PIOB).

How to Comment
IFAC invites all stakeholders to comment on the proposed strategy. Respondents are asked to submit comments electronically through an online survey or the IFAC website, using the “Submit a Comment” link. Although IFAC prefers that comments are submitted via the online survey or its website, responses can also be sent to IFAC staff at compliance@ifac.org. Comments and survey responses are requested by July 3, 2015.

About the IFAC Member Body Compliance Program
The IFAC Member Body Compliance Program is recognized as the global platform supporting adoption and implementation of international standards and best practices. It shapes agendas and actions with a goal of developing strong professional accountancy organizations and strengthening the accountancy profession around the world. The Program is the responsibility of the IFAC Compliance Staff, reporting to the Chief Executive. It is overseen by the Compliance Advisory Panel, which—as one of IFAC’s public interest activities—is overseen by the Public Interest Oversight Board.

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 2.5 million accountants in public practice, education, government service, industry, and commerce.

The International Federation of Accountants^® (IFAC^®) today published in the Spanish language the Handbook of International Public Sector Accounting Pronouncements – 2014 Edition, and the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities (Conceptual Framework).             

These Spanish translations were undertaken by faculty members from the Department of Accounting and Finance, Faculty of Economics and Business Administration, at the University of Zaragoza, Spain. They have been reviewed by an international committee consisting of public sector experts from Argentina, Chile, Mexico, Spain, and Uruguay.

“This Handbook provides a comprehensive set of accounting requirements and guidance developed specifically for preparers of public sector financial statements. Due to the increasing pace of adoption in Spain and Latin America of these standards, this Spanish language translation is especially welcome,” said Andreas Bergmann, Chairman of the International Public Sector Accounting Standards Board^®(IPSASB^®).

The Conceptual Framework provides the IPSASB with the concepts that will underpin the development of International Public Sector Accounting Standards™ (IPSASs™) and Recommended Practice Guidelines (RPGs) in the coming years. It enables the IPSASB to improve the consistency of its standard-setting by strengthening the linkage between IPSASs. Additionally, the transparency of the concepts underpinning the development of IPSASs and RPGs enhances the IPSASB’s accountability.

The Conceptual Framework also responds to key public sector characteristics in its approach to elements (the building blocks of financial statements), the measurement of assets and liabilities, and the presentation of financial reports, while focusing on service recipients’ and resource providers’ needs for high-quality financial reporting information for both accountability and decision-making purposes.

The publication of these Spanish translations is timely, in advance of the 2015 CReCER conference, “Preserving Economic Gains and Investing in the Future: Promoting Growth through Improved Financial Accountability,” May 5-8 in Quito, Ecuador.

CReCER, which represents the Spanish acronym for Contabilidad y Responsibilidad para el Crecimiento Economico (Accounting and Accountability for Regional Economic Growth), is a regional event focusing on accounting and auditing. It promotes improved financial and fiscal reporting policies and practices in the public and private sectors in Latin America and the Caribbean, in support of the region’s economic growth and development agenda. The conference is co-sponsored by IFAC, the World Bank, Inter-American Development Bank, and the Global Public Policy Committee.

Additional Spanish translations of IFAC publications will be forthcoming.

For an overview of translations of IFAC’s publications, please visit the IFAC Translations Database.

About the IPSASB
The IPSASB develops accounting standards and guidance for use by public sector entities. The structures and processes that support the operations of the IPSASB are facilitated by IFAC. The IPSASB 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.

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 over 175 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

Convened by the International Federation of Accountants^® (IFAC^®), the Accountability. Now. coalition, comprising civil society organizations, major international bodies, and the accountancy profession, met for the first time to develop strategies to encourage high-quality public sector financial reporting, greater government transparency and accountability, and empowered citizen engagement.

IFAC Chief Executive Officer Fayez Choudhury commented, “Poor public sector financial management can lead to economic stagnation and contraction; severe social problems that impact future generations; and a widened gulf between government and its citizens.

“IFAC initiated Accountability. Now. to help drive awareness of the critical need for high-quality, transparent, comparable public sector financial reporting, and the importance of engaging citizens in the process of holding governments to account.

“Some of the world’s poorest countries have the most to gain from having high-quality government reporting to better manage scarce public sector resources, attract investment, and promote accountability. IFAC will be focusing much of its efforts on helping these countries implement strategies to embrace high-quality reporting, based on International Public Sector Accounting Standards™, and encourage citizens to be part of the fiscal process.

“Understanding the true costs of government services, including all assets and liabilities, is central to good government and global growth. This is an issue that should be of concern to everyone, not just accountants and that’s the exciting part of Accountability. Now.

“The coalition represents a range of different organizations with the skills and experience to help push for a better social contract between governments and their citizens, at a time when there is enormous pressure on governments to work with tighter budgets and deliver better social outcomes,” Choudhury said.

In addition to the accountancy profession, represented by IFAC and the Big 6 accountancy firms, the coalition includes the Organisation for Economic Co-operation and Development and the Global Initiative for Fiscal Transparency, whose members include International Budget Partnership, International Monetary Fund, World Bank Group, and the Brazilian and Philippines Governments. 

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 2.5 million accountants in public practice, education, government service, industry, and commerce.