As the global voice of the accountancy profession, the International Federation of Accountants (IFAC) supports corporate reporting that better addresses a company’s ability to create long-term value and is decision useful for investors and other stakeholders. Specific regulatory requirements are necessary to harmonize reporting practice and deliver consistent, comparable, assurable, and decision useful sustainability information.

To this end, IFAC has submitted feedback in response to the European Commission’s European Sustainability Reporting Standards (ESRS). In its response, IFAC welcomes the standards while noting significant concerns regarding the need for interoperability that supports a global system for reporting. In addition to the ESRS, IFAC has also welcomed the International Sustainability Standards Board’s (ISSB) new standards and other important jurisdiction or regional initiatives, notably the U.S. SEC’s proposed climate disclosure rule. However, these approaches must align key concepts, terminologies, and metrics to avoid regulatory fragmentation, especially on matters of materiality.

“We strongly support efforts by the European Commission and ISSB to find areas of interoperability in their standards, starting with climate. However, substantive differences remain, so collaboration must continue. This is crucial for investors and all stakeholders who want interoperable ESRS and ISSB standards and connectivity between sustainability and financial information,” said IFAC CEO Kevin Dancey. “ISSB standards should function as a global baseline for all jurisdictions, including the EU for financial materiality, to adopt or align with. This is also why we need transparency—a navigation tool to help stakeholders know where the areas of alignment exist.”

Implementation by companies and enforcement by regulators of the new standards are essential to ESRS success. IFAC urges additional transitional reliefs to allow companies sufficient time to implement governance, processes, reporting capacity, and internal controls—all essential for high quality disclosure and its assurance.

As assurance brings trust and confidence to corporate reporting, IFAC encourages the European Commission to participate in ongoing stakeholder engagement with the International Auditing and Assurance Standards Board (IAASB) toward the goal of requiring use of the IAASB’s forthcoming new International Standard on Sustainability Assurance (ISSA) 5000 under the Corporate Sustainability Reporting Directive. The International Ethics Standards Board for Accountants’ (IESBA) work on establishing ethics and independence requirements for sustainability assurance practitioners is also vital to producing high-quality, reliable information.

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 more than 135 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

3:00 PM - 4:30 PM CEST | 9:00 AM - 10:30 AM EDT 

Today, the International Federation of Accountants (IFAC) released the second installment in a three-part publication series to help small- and medium-sized practices implement the International Auditing and Assurance Standards Board’s (IAASB) quality management standards. Installment Two: Developing a Detailed Implementation Plan provides a step approach to identifying your quality objectives; completing your quality risk assessment process; identifying existing, or creating new, responses to those quality risks; and implementing, documenting, and communicating your system of quality management.

Installment Two also:

• Addresses the eight components of the IAASB’s International Standard on Quality Management 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements;
• Contains an example case study to illustrate the transition from the International Standard on Quality Control 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements; and
• Includes multiple documentation aids covering independence, acceptance and continuance of clients and engagements, resources, and outside consultation, as well as a sample checklist for engagement quality reviews.

Installment One of the series addressed the mindset change the new standards require and the shift in focus from quality control to quality management. Installment Three, expected later this year, will cover monitoring and remediation. This series joins IFAC’s collection of available resources that support quality management implementation, including webinars, articles and videos, as well as the IAASB first-time implementation guides, all of which are available at ifac.org/qualitymanagement.

IFAC acknowledges and appreciates feedback from IFAC’s Small and Medium Practices Advisory Group and Forum of Firms representatives in the development of the series.

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 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce

3:00 PM - 4:30 PM CEST | 9:00 AM - 10:30 AM EDT 

As the global voice of the accountancy profession, IFAC has long supported the establishment of the International Sustainability Standards Board (ISSB) to develop a comprehensive global baseline of sustainability disclosures, endorsed by IOSCO, and used around the world. The goal is a global system for consistent, comparable, reliable, and assurable sustainability information that can be complemented by local standards or broader public policy needs.  

With today’s release of its first two standards, the ISSB has answered stakeholders’ calls to move with pace, to focus on the needs of investors and capital markets, and to build upon existing and respected frameworks and standards.   

IFAC CEO Kevin Dancey said, “In one sense, the finalization of S1 and S2 by the ISSB marks the beginning of the work to be done by the accountancy profession.  All professional accountants—whether working in business, as preparers or auditors, or serving as leaders of professional accountancy organizations—must now advocate for and implement these standards so that high-quality corporate reporting of sustainability-related information becomes a reality.   The ongoing work of the IAASB and IESBA will bring trust and confidence through high-quality—and hopefully mandatory—assurance.”  

“To that end, IFAC calls on the global accountancy profession to work with local regulators and stakeholders to support the adoption of ISSB standards, to help build capacity for their implementation alongside any local complementary reporting requirements, and to continue to contribute our expertise and feedback to the ISSB as its important standard setting work continues.”   

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. 

With the myriad of opportunities available to professional accountants across positions, locales and sectors with the ability to progress in many different roles, accountancy is a passport to meaningful and rewarding careers in both the private and public sectors. This was the theme of the latest meeting of IFAC’s Professional Accountants in Business (PAIB) Advisory Group held in New York City, which convenes a global and diverse group of professional accountants working in a variety of leadership positions in business and the public sector.  

A new article from IFAC explores five opportunities identified by the PAIB Advisory Group available to professional accountants to shape a career for themselves with lasting impact. By enabling digital transformation, connecting organizational goals to corporate sustainability targets and the sustainability development goals (SDGs), and by helping to manage short and long-term trade-offs, professional accountants are contributing to more resilient and sustainable organizations and economies.   

“The accountancy profession is evolving, and there has never been a better time to be an accounting and finance professional,” said Sanjay Rughani, IFAC PAIB Advisory Group Chair. "Professional accountants are critical to driving sustainable prosperity, and we are at a time of unprecedented opportunity to meet the increasing demands for finance and accountancy skills from our multiple stakeholders, including society at large.” 

Explore the five opportunities that make accountancy a passport to meaningful careers in the private and public sectors.  

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. 

About the PAIB Advisory Group 

Formed in 1977, the PAIB Advisory Group is comprised of volunteers with experience and expertise in the world of business and the public sector, nominated by the professional accountancy organizations that make up IFAC’s membership. 

Event will be held online July 13 from 1:00-2:00pm CEST / 7:00-8:00am EDT

According to a  Global Guide for Professionalisation in Public Sector Finance published by ACCA and IFAC, achieving professionalisation brings multiple benefits to the economy, governments and individuals. Public financial management (PFM) reforms will only be achieved if finance professionals have the right skills and knowledge and if the public sector is able to attract and retain the right people.

But this is becoming more challenging in a world where the public sector is increasingly competing for talent, despite the tangible advantages of a finance career in the public sector, as highlighted in the latest ACCA’s Global Talent Trends 2023: Public Sector report.

Join ACCA (the Association of Chartered Certified Accountants) and IFAC (the International Federation of Accountants) for a live global webinar to explore:

1. How governments are professionalising their finance functions and building their capacity and capabilities to improve public service outcomes and ultimately deliver value for citizens.
2. How to make public employment and management systems better able to attract, recruit and retain the best talents to achieve successful professionalization.

Helen Brand, chief executive of ACCA, said: “Professionalising the public finance function requires political will, the right structures and governance, adoption of appropriate policies, and a commitment to continuous development and improvement. Achieving professionalisation brings multiple benefits to individual professionals, governments, and the wider economy. It means greater financial credibility, improved financial management in the public sector, and greater access to diverse career options for individuals.”

"The professionalisation of public sector finance functions is crucial for effective governance and sustainable economic development. By nurturing a highly skilled and accountable workforce, we can increase transparency, efficiency, and trust in the management of public finances”, said Kevin Dancey, IFAC CEO. “Attracting top talent is key to enhance the profession's capacity to navigate complex financial and social challenges and drive positive change in the public sector."

The event will feature:  

• Tracey Carroll, First Assistant Secretary, Financial Analysis, Reporting and Controlling, Federal Ministry of Australia
• Lorena Rivero del Paso, Public Financial Management Advisor, IMF
• Dónal Mulligan, Policy Analyst, Public Employment and Management, OECD
• Alex Metcalfe, Global Head of Public Sector, ACCA
• Laura Leka, Principal, IFAC,

The event is free to attend and will be held in English via zoom. View the agenda and register now.  

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

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

Last month, IFAC was accepted as an Affiliate Member of the International Organization of Securities Commissions (IOSCO).  This marks a significant step in IFAC’s ability to work with other international organizations for the public interest, and to elevate the voice of the global accountancy profession with key global stakeholders.  IFAC is the sole representative of the accountancy profession within the IOSCO membership. 

IOSCO is the international body that brings together the world's securities regulators and is recognized as the global standard setter for the securities sector. IOSCO develops, implements and promotes adherence to internationally recognized standards for securities regulation.  IOSCO was established in 1983 and has 238 Members.   

IOSCO’s Ordinary members include securities regulators in over 130 jurisdictions.  The Affiliate Membership category includes self-regulatory organizations (SROs), securities exchanges and markets infrastructure, and other international bodies with a direct interest in securities regulation.   

Affiliate Member status enables IFAC to participate in the IOSCO Affiliate Members Consultative Committee (AMCC), which is a platform for Affiliate Members to provide important perspective into IOSCO’s regulatory policy work, as well as to share experiences and enhance cooperation amongst Affiliate Members.  IFAC can also participate as an observer at the IOSCO Presidents Committee meeting. 

“IOSCO is a global leader on key IFAC priorities like investor protection, corporate reporting, audit quality, sustainability and financial literacy,” said Kevin Dancey, Chief Executive Officer at IFAC. “By joining IOSCO as an Affiliate Member, IFAC looks to strengthening the accountancy profession’s engagement on these and other key topics at both the global and jurisdictional levels.” 

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.