To meet their sustainability commitments, companies are increasingly focused on financing sustainability-related transition projects that require extensive capital at lower cost.
The annual A4S Summit is a unique global gathering to catalyse action on sustainability in the finance community.
Through the series of events that make up the Summit, A4S brings together leaders in finance for discussion, insight and action. Participants will explore the trends shaping our world and the practical actions that can be taken to build a resilient, sustainable economy.
Exploring the IESBA Code - A Focus on Technology looks at challlenges professional accountants might face when applying the conceptual framework of the IESBA Code to technology-related matters.
To guide professional accountancy organizations (PAOs) in how they can act today to prepare their current and future members to seize opportunities presented by emerging trends, IFAC has published a new report with insights from its Professional Accountancy Organization Development and Advisory Group. These insights address four emerging trends—sustainability-related reporting, anti-corruption efforts, sound public financial management, and technological change—that will help PAOs ensure their own and their members’ resilience, relevance and adaptability today and into the future.
The PAO Development and Advisory Group encourages PAOs to consider how their educational programming can respond to these trends, and engage accordingly with their education stakeholders. Actioning some or all of the insights in the new report will help PAOs improve their value proposition and the attractiveness of the profession, while helping address issues that are fundamental to the public interest.
Insights from the PAO Development & Advisory Group
This new report will guide professional accountancy organizations in how they can act today to prepare their current and future members to seize opportunities presented by emerging trends using insights from the IFAC Professional Accountancy Organization Development and Advisory Group. These insights address four emerging trends—sustainabilityrelated reporting, anti-corruption efforts, sound public financial management, and technological change—that will help PAOs ensure their own and their members’ resilience, relevance and adaptability today and into the future.
Public financial management (PFM) reforms will only be achieved through finance professionals with the right skills and knowledge.
Governments are implementing PFM reforms in a bid to improve the accountability, transparency, governance and integrity of revenues and spending. But many reforms have addressed structures, systems and processes rather than people and capabilities, according to ACCA (the Association of Chartered Certified Accountants) and the International Federation of Accountants (IFAC).
A new joint ACCA/IFAC report – released at the World Congress of Accountants (WCOA) held in Mumbai India 18-21 November – aims to boost PFM reforms across the globe.
A Global Guide for Professionalisation in Public Sector Finance outlines what professionalisation means in public sector finance, sets out the benefits of professionalisation, and offers a high-level roadmap to support global good practice in professionalisation.
Discussing the global guide ahead of a panel discussion at WCOA, Joseph Owolabi, ACCA President, said: ‘Professionalisation brings credibility, trust and confidence in public finances by supplementing the systems and public finance processes with the right skills for accountability, transparency, good governance and external scrutiny. A professionalised workforce within a finance function supplies more than accounting information. They bring wide value to public sector finances – providing improved revenue collection, effective budgetary controls, and the data required to support policy decision making.’
Kevin Dancey, IFAC CEO, said: ‘We are looking to rebalance the focus so that it is not only on the process but also on the people. The value of the accountancy profession, whether in the public or private sectors, comes from the experience, skills, judgement and ethical behaviour of its people. By increasing the number of professional accountants working in the public sector, we will no doubt add to the credibility and effectiveness ofPFM, and reinforce trust in public services and spending.'
Achieving professionalisation brings multiple benefits to the economy, governments and individuals. A key benefit for economies is greater financial credibility; for governments improved financial management discipline; and for individuals gaining access to diverse career options.
The report acknowledges that achieving professionalisation is not straightforward or easy. It requires political will, structures, adoption and implementation of complex policies plus continuous development and improvement.
The report has case studies of good practice from Tanzania, the UK, Cyprus, the Philippines Pakistan, Malaysia and Wales.
Alex Metcalfe, ACCA’s Head of public sector, said: ‘Political leadership and commitment for professionalisation is the most important factor for sustaining PFM reforms over time. In some countries, there is a lack of recognition that change is needed at all. In other countries, PFM reforms have concentrated on moving from cash-based to accrual-based accounting. But now more effort is urgently required to professionalise public finance staff and provide opportunities for training for professional qualifications.’
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 180 members and associations in 135 jurisdictions, representing more than 3 million accountants, in public practice, education, government service, industry and commerce.
About ACCA
ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants.
We’re a thriving global community of 241,000 members and 542,000 future members based in 178 countries and regions, who work across a wide range of sectors and industries. We uphold the highest professional and ethical values.
We offer everyone everywhere the opportunity to experience a rewarding career in accountancy, finance and management. Our qualifications and learning opportunities develop strategic business leaders, forward-thinking professionals with the financial, business and digital expertise essential for the creation of sustainable organisations and flourishing societies.
Since 1904, being a force for public good has been embedded in our purpose. In December 2020, we made commitments to the UN Sustainable Development Goals which we are measuring and will report on in our annual integrated report.
We believe that accountancy is a cornerstone profession of society and is vital helping economies, organisations and individuals to grow and prosper. It does this by creating robust trusted financial and business management, combating corruption, ensuring organisations are managed ethically, driving sustainability, and providing rewarding career opportunities.
And through our cutting-edge research, we lead the profession by answering today’s questions and preparing for the future. We’re a not-for-profit organisation. Find out more at accaglobal.com
Professionalisation of the workforce is one of the most important steps in achieving step change in public sector financial management
As a global systemic risk, climate change has become a focal point for corporate sustainability disclosure. Getting to Net Zero: A Global Review of Corporate Disclosures analyzes disclosure trends in emissions reduction targets and transition plans of the 40 largest exchange-listed companies in 15 jurisdictions, for a total of 600 companies. The jurisdictions include G7 countries and 8 non-G7 countries for the 2020 reporting year.
With the emergence of widespread economic and political uncertainty in 2022 in the wake of the COVID-19 pandemic, IFAC highlights the interconnection between global cooperation, the sustainability agenda, the need for strong public financial management (PFM) and the fight against corruption. IFAC’s 2022 G20 Call to Action builds off the four priorities from IFAC’s 2020 G20 Call to Action and the two key actions set out in 2021 to emphasize that we cannot make progress on any of these issues in isolation.
“Tremendous interconnectivity is required if we are to make any significant progress toward achieving the UN’s Sustainable Development Goals. This is not just within the accountancy profession, but also between the profession and other UN SDG stakeholders. We commend the efforts of the G20, and also call on G20 leaders to do even more,” said CEO Kevin Dancey.
“At the same time, the accountancy profession will continue to deploy its unique skills and competencies to support strong and sustainable public and private sector organizations, and strong and sustainable financial markets and economies. This is our public interest mandate.”
IFAC’s 2022 Call to Action and its focus on sustainability-related reporting standards, public financial management, and anti-corruption aligns with IFAC’s IMPACT approach. Introduced earlier this year, the IMPACT approach identifies the most important issues currently facing the accountancy profession, private & public organizations, and global financial markets & economies, and provides a framework for the profession to be able to work together to help drive constructive change. The IMPACT approach is a guide for where the accountancy profession should be headed, and a tool for increased collaboration and cohesion within the profession.
To strengthen global economies, societies, and the environment, and to continue to address challenges resulting from the COVID-19 pandemic, IFAC calls on G20 leaders to:
1. Make Sustainability a Reality, Not Just a Goal
Support the IFRS Sustainability Disclosure Standards
Implement policies for an inclusive transition
Balance climate with broader ESG and reporting
Recognize the role of professional accountants in developing decision-useful sustainability information
2. Support Public Financial Management and Fight Corruption
Support professionalization in the public sector and adoption of IPSAS
Implement crucial multilateral commitments against corruption and related issues
Look to the global accountancy profession as central partners
3. Work Together for Collective Prosperity
Minimize regulatory fragmentation to drive economic growth
Understand the importance of global public health and its interplay with PFM
Resolve global conflicts and focus on long-term issues
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 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.
Sustainability-Related Reporting Standards, Public Finance Management, Fighting Corruption, and Collaboration All Crucial to Achieving Sustainable Development Goals.
