International Federation of Accountants Importance of ...


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  • Code serves as foundation for all codes of ethics developed and enforced by member bodies. Code endorses concepts of objectivity, integrity, and professional competence Code applicable to all professional accountants
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  • International Federation of Accountants Importance of ...

    1. 1. International Federation of Accountants Importance of Reliable Financial Reporting in the International Context October 2005
    2. 2. <ul><li>Over 2.5 million professional accountants worldwide represented by over 160 IFAC member bodies in 119 countries </li></ul><ul><li>Contributes to every sector and aspect of the global economy </li></ul>The International Accountancy Profession The Profession
    3. 3. <ul><li>Achieved through: </li></ul><ul><li>Market-driven policies </li></ul><ul><li>Transparency </li></ul><ul><li>Sound corporate governance </li></ul><ul><li>Credible financial reporting </li></ul>Economic Stability and Growth The Global Environment
    4. 4. Building a Global Financial Infrastructure <ul><li>Transparent financial reporting process </li></ul><ul><li>Adherence to internationally recognized standards </li></ul><ul><li>Well-designed regulatory structure </li></ul><ul><li>Consistent application of regulations </li></ul><ul><li>Robust corporate governance </li></ul>The Global Environment
    5. 5. Financial Reporting Process <ul><li>Contributes to financial decision making </li></ul><ul><li>Characterized by integrity by all those in the financial reporting supply chain </li></ul><ul><li>Focuses on public interest </li></ul><ul><li>Investors have role </li></ul>The Global Environment
    6. 6. IFAC Standard Setting <ul><li>International Auditing and Assurance Standards Board (IAASB) </li></ul><ul><li>Ethics Committee </li></ul><ul><li>International Public Sector Accounting Standards Board </li></ul><ul><li>Education Committee </li></ul><ul><li>Member Body Compliance Program </li></ul>IFAC Standard Setting
    7. 7. IAASB <ul><li>Develops high-quality auditing, assurance and related services standards </li></ul><ul><li>Members include practicing accountants, academics, and representatives of business and government </li></ul><ul><li>Has a thorough and transparent due process </li></ul><ul><li>Obtains public input through CAG, as do other IFAC standard-setting committees </li></ul>Standard Setting - IAASB
    8. 8. Ethics Committee <ul><li>Develops Code of Ethics applicable to accountants in public practice, business and government </li></ul><ul><li>Code requires all accountants to act with integrity </li></ul><ul><li>Code features principles-based approach </li></ul><ul><li>No member body or firm is allowed to apply less stringent standards </li></ul><ul><li>Current focus on updating guidance on independence </li></ul>Standard Setting - Ethics
    9. 9. International Public Sector Accounting Standards Board (IPSASB) <ul><li>Strives to improve public sector financial management and accountability </li></ul><ul><li>Issues authoritative international public sector financial reporting standards </li></ul><ul><li>These standards help to build credibility in financial reporting by governments </li></ul>Standard Setting – Public Sector
    10. 10. Education Committee <ul><li>Develops standards and guidance for education and development of professional accountants worldwide </li></ul><ul><li>Strives to achieve global quality and consistency in accounting education </li></ul><ul><li>Underpins all standard-setting </li></ul>Standard Setting - Education
    11. 11. Member Body Compliance Program <ul><li>Statements of Membership Obligations serve as the foundation </li></ul><ul><li>Requires incorporation of IFAC and IASB standards by member bodies </li></ul><ul><li>Requires that member bodies have quality assurance and disciplinary programs </li></ul><ul><li>Provides global snapshot of the profession with information posted on IFAC website. </li></ul>IFAC Compliance Program
    12. 12. Value of International Standards <ul><li>Contributes to -- </li></ul><ul><li>Efficient functioning of capital markets </li></ul><ul><li>Greater comparability of information </li></ul><ul><li>Investor confidence </li></ul>Conclusion
    13. 13. International Federation of Accountants