October 2006
IA N EWSF B RIEFINGA FROMC THE I NTERNATIONALN F EDERATIONe wsOF A CCOUNT ANTS
In This Issue IFAC and Member Bodies Launch New 2 Education Board Issues New Standard on Auditor Global Resource for Accountants in Business Competence; Focuses on tarting October 2, 2006, commerce, industry, the pub- Ethics Education and IT professional accountants in lic sector, education, and the Education Board business gained access to a not-for-profit sector. Users of Proposes New Guidance S On Ethics Training new global knowledge resource: IFACnet will find high qual- 3 President’s Message IFACnet – A KnowledgeNet for ity, relevant information on Accountants in Business. IFAC a wide range of financial and 4 Ethics Standards Board Issues Revised Defini- collaborated with more than a management accounting topics, tion of a Network Firm dozen of its member organizations worldwide to including strategy, management, budgeting and IFAC Hosts Regional develop this web-based service. The project was planning, corporate governance, and risk man- Forum on Needs of initiated by IFAC’s Professional Accountants in agement. SMEs and SMPs Business Committee as a means to help mem- IFACnet makes use of advanced technology IFAC to Publish ber bodies, in addition to IFAC, enhance their specifically tailored to the accountancy profession. History of Organization services to this constituency. Individuals may access It carefully indexes, filters and sifts all the best and 5 IFAC Members Over- whelmingly Support IFACnet by going directly to www.ifacnet.com most relevant items of information available so Compliance Program or to the websites of IFAC and participating mem- that they can be delivered on demand to IFACnet IFAC Cosponsors ber bodies. users. The technology supporting IFACnet was Workshop on Building developed by Indez, a software company based Content Overview The Accountancy in Glasgow, Scotland. It features an enterprise Profession in Africa IFACnet provides one-stop access to leading edge search engine that is based on patented search 6 IAASB Approves First Set articles, good practice guidance, and tools and technology. Of Final Clarity Standards techniques targeted to accountants employed in IAASB Releases How to Participate Guidance on Member bodies may participate in two Adoption of ISAs with Limited Modifications Member Bodies Participating ways. Currently, thirteen IFAC member IAASB and INTOSAI in the IFACnet Launch organizations are participating in IFACnet Continue Close (As of September 15, 2006) by sharing their electronic knowledge Working Relationship American Institute of Certified Public Accountants resources. Other member bodies that IAASB Chair John Association of Chartered Certified Accountants have expressed interest in sharing their Kellas Reappointed resources will join IFACnet in the coming For Second Term Chartered Institute of Management Accountants months. In addition, all member bodies are 7 IPSASB Approves CMA Canada New Standards; CPA Australia welcome to incorporate a link to IFACnet Updates to Preface Hong Kong Institute of Certified Public Accountants on their websites. Information on web-site UN Adopts Inter- Institute of Certified Public Accountants in Ireland integration, branding and other topics is national Public Sector http:// Institute of Chartered Accountants in England and available in the IFAC MemberNet ( Accounting Standards membernet.ifac.org). IFAC Appoints New Wales IPSASB Technical Director Institute of Chartered Accountants in Ireland A Look Ahead 8 Committee Releases Institute of Chartered Accountants of India In the first quarter of 2007, IFACnet New Guidance to Support Institute of Management Accountants will be expanded to serve the needs of Professional Account- Koninklijk Nederlands Instituut van Register- small and medium accounting practices. ants in Business accountants (Royal NIVRA) By the end of 2007, it will offer custom- Two New Papers Focus on Sustainability Malaysian Institute of Accountants ized information for broader audiences of Reporting and PAIBs accountants. ❚ A Newsletter for the International Accountancy Profession OCTOBER 2006 2 I Focuses on Ethics Education and IT and Education Ethics on Focuses Competence; Auditor on Standard New Issues Board Education New Guidance on Ethics Training Ethics on Guidance New Proposes Board Education c ad tiue i acrac wt the with accordance in attitudes and ics eth values, developing professional maintaining and in practice good how achieve on to bodies member IFAC to ance Values, Ethics and Attitudes Professional Maintaining and Developing members. their for programs development professional ing continu and education ethics developing designed to assist IFAC member bodies Attitudes in and Ethics Values, Professional Maintaining (IEPS), and Developing to Approaches Statement Practice Education from expected attitudes and ethics ues, val professional and skills professional the and knowledge; technology mation infor relevant reporting; financial and includes havingadvancedlevelknowledge audit whichof 8, IES of requirements the meet professionals audit that ensure procedurespoliciesandto their modify to expected be IFACwill bodiesmember professionalsperformto competently. professionalattitudesvalues,auditforand which sets out the necessary skills, training, petence Requirements for Audit Professionals 8, (IES) Standard Education tional In July, the IAESB released a new Interna Professionals Audit for Requirements Competence fieldoftheinformation technology (IT). in guidanceupdated of draftexposure an informationpaper onethics education and an as well professionals,as audit of tence compe on Standard Education national Internew a released has (IAESB) Board nationalAccountingEducation Standards Inter the profession, accountancy the of programsforcurrentfuturemembers and A ing Education Standards Board Board Standards International new a proposed (IAESB) Education ing n September, the International A The proposed IEPS, IEPS, proposed The member bodies and others in in developing others education and training and bodies member support to program its of part s , provides guid Approaches to to Approaches ccount Com ------, , auditprofessionals. Thenew standard also tis dcto i a ieog com lifelong a is education Ethics making. decision and judgment ethical of development the in essential being ofas experience period practical a and learning workplace of importance the stresses IEPS proposed Programs Education Accounting Attitudes in and Ethics Values, of Professional Maintenance and Development the to paper, information published recently its in developed Framework,” Education “Ethics IAESB’s the on based education ethics to approach an of tion Attitudes and Standard Education International in requirements Inter new proposed a issued IAESB the September in paper, information this in proposalsand Buildingfindings theon report,commissioned IAESB. bythe on the findings of an independent research ics education programs. The paper is based educators, accounting and others in implementing eth organizations, accountancy regional bodies, member IFAC assist to in Programs Education Attitudes Accounting and Ethics Values, fessional Pro of Maintenance and Development the paper, information new a released it August, In accountants. sional developguidance on ethics education to for all workingprofes also is IAESB The Education Ethics ( IFACbookstorethe downloaded from be can 8 IES 2008. 1, July from effective is It partner. engagement audit the just notaudit professionals,all appliesto 8 IES ofcapabilities andcompetence. audit in andthattheyundergo assessment an experience practical of period a take under they that includingprofessionals, audit new of development programs and establisheseducationrequirementsthe for ww w.ifac.org/store
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3 President’s Message OCTO BER
Our International Profession and the Ties That Bind 200 6
f there is anything that I have learned sound accountancy profession is essential of Membership A Newsletter for the International Accountancy Profession Accountancy International the for Newsletter A over the past two years as IFAC’s to economic growth and development; Obligation) Self- I President, it is that unwavering integ- and to provide their support to the con- Assessment, have rity, steadfast commitment and a clear tinued strengthening of our profession in provided informa- and shared vision provide the ties that their nations. tion about member bind the international accountancy pro- organizations’ Strengthening and fession. It is, indeed, these ties that have Promoting High Standards responsibilities, enabled us better to fulfill our mission to The Public Interest Oversight Board’s including education serve the public interest and to progress an approval of the due process for the stand- and ethics require- agenda of change that has included devel- ard setting of the International Auditing ments of their Graham Ward oping the profession, strengthening and and Assurance Standards Board, Inter- members, auditing promoting high standards and expanding national Accounting Education Standards and accounting standards to be followed support, services, and relationships. Board, and International Ethics Stand- by professional accountants, and quality assurance and investigation and discipline Developing the Profession ards Board for Accountants sent a clear
Based on the membership of IFAC message that these independent IFAC programs to monitor compliance with member bodies, we are now 2.5 million standard-setting boards are acting effec- standards and requirements. This infor- members strong in 120 countries. There tively in the public interest. mation is being posted on the IFAC web- are, however, still countries that lack the As you will read elsewhere in this site as it is cleared by each member body. resources necessary to develop an account- newsletter, those boards are also address- Lastly, we have strengthened our ancy profession or whose accountants are ing some of the most difficult and press- standard setting by seeking the input not organized by professional institutes. ing issues for our profession today: clarity of increasing numbers of both the profes- Over the past year, through the Develop- of international standards, ethical train- sion and the investing public. The voice of ing Nations Committee, with the support ing of accountants, independence and the latter is heard through the Consulta- of the IFAC Board and leadership, we the operations of network firms, and the tive Advisory Groups and through open have made steady progress in reaching strengthening of governmental financial meetings which the public may attend. out to these countries and assisting them reporting. As they address these technical Also, the establishment of the Small and with their development work. issues, IFAC’s standard-setting boards, Medium Practices (SMP) Committee has including the International Public Sector given this constituency a louder, more Unwavering integrity, stead- Accounting Standards Board, are also formal and more effective voice in IFAC standard-setting activities. fast commitment and a clear continually striving to achieve conver- gence. They clearly recognize that using Expanding Support and Services and shared vision provide the a common set of standards (that meets A clear focus on the need for practical ties that bind the international national legal requirements) facilitates support for all members of the profession, accountancy profession. international dialogue and understanding especially professional accountants in busi- of financial reports, is cost-effective, and ness, those employed in SMPs and small Our Developing Nations toolkit, contributes to building fair markets and and medium entities (SMEs), and account- released last year, is providing the guid- investor confidence. ants in the public sector, has resulted in the ance and direction for countries such An additional impetus for conver- past year in the commitment of resources as Macedonia, Russia and Armenia to gence and high quality practices world- to several critical projects, including: advance the development of an organized wide has been the IFAC Member Body • An electronic KnowledgeNet for accountancy profession. The recent Africa Compliance Program. Part 1 of the Professional Accountants in Business, Region Learning Workshop (see page 5), program has resulted in the most com- enabling IFAC member bodies to and direct outreach by myself, together prehensive information available to date expand the resources they currently with IFAC’s Chief Executive and tech- on the regulatory and standard-setting make available to this constituency; nical directors, to countries such as Sri frameworks of our profession in countries • A practical guide on the implemen- Lanka, Morocco, Botswana, Pakistan, around the world – all of which is pub- tation of International Standards on and Senegal has helped government and licly available on IFAC’s website. Auditing for SMPs; industry leaders better to understand As indicated in the article on page 5, • A business planning guide for SMEs; what many of us already know: that a responses to Part 2, the SMO (Statements continued on page 4 A Newsletter for the International Accountancy Profession OCTOBER 2006 4 Revised Definition of a Network Firm Network a of Definition Revised Issues Board Standards Ethics foryour support. muchindeed, forcommitment this and ofprogress reality.a youThank veryall, ismandleadership madehas ourvision IFACandthe whosestaff professional ofintegrity, transparency andexpertise; theirown bodiesandlive IFACthe values whosupport internationalthe work of thousandsthe ofaccountants worldwide serveIFACon boards andcommittees; dredsofprofessional accountants who Group;activethe involvement ofhun estOversight BoardMonitoringandthe communityespecially– Publicthe Inter productivedialogue regulatorywiththe commitmentofourmember the bodies; nothave achievedbeen without strongthe T Relationships Collaborative page3 continued from Profession InternationalOur cost sharing, or or shares common profit ownership, at aimed clearly is and eration largercoopataimeda structureto is that classifies networkas belongfirms firms theif firms It parties. third to themselves present they how and operate networkshow on focuses definitionrevised The network.withinthe firm another of clientaudit an independentof ants the revisedthedefinition ofnetwork a in firm has (IESBA) Accountants for Board ards T hestrong progress wehave made could • • . Network firms are required to be be to required are firms Network . Code of Ethics for ProfessionalforAccountEthics of Code qualityfor Forumthe ofFirms. strengthenedA policyauditon accountantsbusiness;in trainingtheofprofessional in bers,academics, andothers involved ethicstoolkit An for IFAC mem h Itrainl tis Stand Ethics International the independence, of matters on ance provideguid clearauditorso with
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F SMEs and SMPs and SMEs of Needs on Forum Regional Hosts IFAC national level. national inter the at SMPs and SMEs and for support commitment continued its firmed Accountants, Pacific and Asian of Confederation the and Accountants lic Certi of Institute Kong Hong forum the at representatives IFAC region. Pacific Asia- the in those especially SMPs, and facing opportunities (SMEs) entities medium-sized and small- and challenges held a forum in Hong Kong to discuss the Committee (SMP) Practices Medium and July in Conference, at IFAC’swebsiteon page home committee the visitforum, the presentationsat made IFACthe ofwork viewtoCommitteeand SMP the aboutinformation more For setters needed.isfocus SME orwhere SMP an standard international of drafts continuesto regularly respond to exposure IFAC Additionally, SMPs. for resource knowledge web-based a and audits SME for Auditing on Standards International to guide a developing is It them. use to have that SMEs and SMPs to assistance nationalstandards and providing practical ingto shape formthe andcontent of inter help standards, accounting and auditing international with SMPs comply and and converge SMEs helping to approach two-prongeda taking is Committee SMP IFAC’s challenges, these address helpTo SMPs: and SMEs facing challenges cant signifi two identified countries 35 from participants forum 130 than more The www.ifac.org/smp • • of SMEs. of accountability and growth the support to ways new explore to continue should SMPs economy, globalized increasingly an In and compliance; of cost associated the reduce and needs users’ their for appropriate are that standards reporting financial need SMEs Developing Nations Consultative Consultative Nations Developing the and of SMP/SME IFAC 2005 success March the on ollowing wih a c-otd y the by co-hosted was which , 2006, .
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5 OCTOBER 2006 A Newsletter for the International Accountancy Profession -
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professional professional accountancy organizations in converging national and international and practices. standards Action IFAC plans will members be and developed assistance from associates, by the Compliance staff, to with address areas requiring further attention and development. During this phase of the program, the CAP will also provide feedback to the IFAC standard-setting Com Nations Developing the and boards necessary develop to them enable to mittee tools, guidance and resources members to and assist associates in the actions. required completing successfully For more member and information associate and responses to to at page its web visit Program, Compliance view the www.ifac.org/complianceprogram sustaining good governance and ethics. sustaining good governance The of Learning IFAC’s ongoing activities, led by Workshop its is Nations Developing Committee, to sup part of the accountancy port the development More information worldwide. profession on the Developing Nations Committee and the Learningis available Workshop on the IFAC website at developingnations cosponsored by IFAC and the United Nations Conference on Development. Trade and The was purpose to of the Workshop support improvements reporting in and boost financial capacity building and sustainability within the accounting and auditing profession in Africa. This will enable the to profession more effec and to good contribute governance tively and growth stability social and economic in Africa. Discussions at focused the Workshop on achieving high reporting, the needs quality of the accountancy financial in profession Africa, the role of govern development the and accountancy in ment of the and profession, the importance of ------
at the Africa Region Learn Region Africa the at ver 200 representatives from 37 African nations attended Africa Region the Learning Work donor funds; and donor regional broader Support cooperation. Reform and strengthen and strengthen Reform for frameworks institutional reporting; corporate in capacity accountancy Build sectors, and public the private in those African especially formal no where countries exists; profession and national regional Assist in bodies accessing professional • • • • • • elegates tions tions for supporting the development in including: Africa, the of profession D recommenda provided Workshop ing O shop in Nairobi, Kenya on 28-29. Representatives of September donor agencies, national governments, the accountancy profession, and the private attended the sector Learning Workshop, which also was sponsored by the World Bank and Board Board and to the Public Interest sight Over Board. Compliance staff IFAC of will knowledge with others with also work validate to countries associate and member the information submitted and to ter understand the bet issues facing national relevant international standards international into relevant their national standards. It also requires such organizations to submit a supplemental their report comparing national standards as such benchmarks the with international the pronouncements of the International Board. Standards Assurance and Auditing Steps Ahead The Compliance Advisory Panel (CAP), Compli Body Member the oversees which ance Program, will continue to report on the status of Part 2 to responses the IFAC and how the member has incorporated the has incorporated the member how and IFAC Cosponsors Workshop on Building The Accountancy Profession in Africa - - , are , which are are which , Assessment Assessment of the Regulatory
mplementation of IFAC’s Member Body Body Member IFAC’s of mplementation Compliance Program is continuing on IFAC of support the to thanks schedule, a direct responsibility for the SMO area, the the area, SMO the for responsibility direct a whether understand to seeks questionnaire programs programs in place to monitor compliance and requirements. standards with has organization responding the Where and and accounting standards to be followed by professional accountants, and quality assurance and and discipline investigation organization’s activities in each of the SMO SMO the of each in activities organization’s areas, including the education and ethics requirements of their members, auditing questionnaire questionnaire field test and their timely responses. quality high of submission Responses provide information on the Members and associates have demonstrated demonstrated have associates and Members a strong commitment to beginning the with their in program involvement the and Standard-Setting Framework Standard-Setting and website. on the IFAC available currently Quality of Responses the IFAC the website. This IFAC the complements more than 150 responses to the questionnaire, Part 1 and finalize the majority of these responses responses these of majority the finalize and the before end of 2006. Over 30 responses have been finalized and are posted on Over as 120 received of the end of 2006.September responses to Part The 2 Compliance were staff intends to review provided provided information on the regulatory and standard-setting frameworks under operate. they which SMO Self-Assessment follows Part 1 of the the of 1 Part follows Self-Assessment SMO associates and members in which program set set out in the ship Statements Obligations (SMOs) of which Member serve as a benchmark for their endeavors. The provides provides information on organiza IFAC of the challenges and progress activities, tions with respect to the requirements SMO SMO Self-Assessment Questionnaire now being posted on the IFAC website. The SMO Self-Assessment questionnaire the profession around the world. the world. around the profession Members’ and associates’ Part responses to 2 of the Compliance Program, the members members and associates. As a result, the public is able to benefit from increasing information access about the to state of Part 2 responses now available on IFAC’s website Part on IFAC’s now 2 available responses
IFAC IFAC Members Overwhelmingly Support Compliance Program I A Newsletter for the International Accountancy Profession OCTOBER 2006 6 IAASB Approves First Set of Final Clarity Standards Clarity Final of Set First Approves IAASB IAASB ChairKellasJohn IAASB rmr cnat ih h IAB Con IAASB the with contact primary the as serve to In continue will he addition, Commission. European adop the by their tion and standards those convergence with promote to and Auditing on Standards International develop quality high to efforts IAASB’s the lead to continue will Kellas Mr. IAASB, the of Chair As 2008. 31, December ending and 2007 1, January beginning a term for second Board IFAC the by been reappointed has 2004, January since (IAASB) J The the in input this considered IAASB the and developingpracticesmediumand nations, ber bodies, users of the standards, small and wide range of constituents, including mem T 2005.October in exposuredraftsissued as ConsultationClarity.onPaper ProposedStatementPolicy2004and its to responses through and 2005 in forum ity on Clar basedinternational an at received it input developed was It world. the around countries in used and translated more understandable, clearer, and better capable of standards being IAASB’s the international make to designed is tion obligationsconvention.attachedthe to conventiondrafting authoritythe and and Services Related andAssurance Con Auditing,Review,Other trol, Quality on Standards International approvedits amendmentsto also IAASB convention.The drafting ify clar its in redrafted (ISAs) Auditing on Standards International final of set first the approved (IAASB) Board Standards A e AS rcie cmet from comments received IAASB he • • The proposed redrafted standards were conven drafting clarity IAASB’s The eeomn o te ia standards. final the of development threeredrafted standards are: and Assurance Standards Board Board Standards Assurance and Auditing International the of man Chair as served has who Kellas, ohn the Riskthe ISA315, FinancialStatements ISA 300, inl uiig n Assurance and Auditing tional Interna the 2006, September in t its meeting in Montreal, Canada s of MaterialofMisstates Ident PlanningAuditanof ht e frh h clarity the forth set that ifyingAssessingand ; Preface to the Preface to ment
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I I Of ISA Of Adoption on Guidance Releases IAASB Close Working Relationship Working Close Continue INTOSAI and IAASB work program, visit its home page: page: home its www.iaasb.org visit program, work IAASB’s the on information more For 2004. to 1990 from Practice Professional of Department the in partner a KPMG LLP in London, where he headed was he 2004, in tirement re his Until Board. Practices Auditing Kingdom United the of member a was he 2002, to 1991 IAASB From the 2000. on October served since has Kellas Mr. IAASB. the by sidered con fully are perspectives interest public that ensure to Group Advisory sultative Standards International IAASB’s the use to INTOSAI enables which (INTOSAI) Institutions Audit Supreme of nization ards Committee of the International Orga understanding with the Professional Stand downloaded be Theguide can from IAASBwebsitethe at nationalofthe standard setter. IFACmember body, memberthe requestedisbody tobringguidanceattentionthe tothe an controlofunderthe standards.notWheretionalnational auditing is standard setting internathe toconformstandards national the that assert tosetter standardnational the whichmodifications to adopted international standards are permitted, while still allowing meeting. IAASB State Financial ment of Audit an in Fraud to 240, ISA to addition in standards, three These IAB apoe a eoadm of memorandum a approved (IAASB) Board Standards Assurance and ing Audit International the 2006, May n a definitivea statement on convergence, the document provides guidance on the extent to internationaladoptitsintended be notlimitedmodifications.standards to Whilewith that settersstandard auditing national for guidance new released IAASB July,the n • , h Adtrs epniiiy Relating Responsibility Auditor’s The ISA330, ItsandEnvironment throughUnders to Assessedto Risks will be issued following the October s TheAuditor’s Responses . with Limited Modifications Limited with
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. www.ipsasb.org e based in a new IPSASB ar he InternationalStephenie appointed has Federation Accountants of Fox as Technical Director for the of of the IPSASB through her work at the Account of Canadian Chartered Institute ants and on her participation the IPSASB steering committee leading a project on revenue. non-exchange Ms. Technical full-time as retiring is who cliffe Fox takes over from Paul Director. Sut Mr. Sutcliffe will continue to the for on work IPSASB a basis part-time projects on specific as Advisor a Senior T International Public Sector Accounting Sep Board effective Standards (IPSASB), Barry with along Fox, Ms. 2006. 1, tember Technical as IPSASB the joins who Naik, Manager, office in Toronto, Canada which is being provided by the Canadian Institute Chartered Accountants. of In addition, the Treasury Board of Canada is providing US$200,000 in funding per year for the next five years for IPSASB activities. Ms. Canadian Fox comes Public to Accountability IFAC Board and from previously supported the the Canadian Public Sector Accounting Board, where she gained extensive experience in public sector accounting standard setting. Ms. Fox is familiar with the work program non-market non-market activities of the government that take place in the own government’s – jurisdiction for excluding, example, any foreign or enterprises business government activities. In some jurisdictions, govern their and ments budgets prepare financial statements primarily for the general gov ernment sector. This IPSAS will information to allow provide those governments about that sector in financial their statements. It consolidated will also provide a link to statistical based financial reports the with budget. comparison and facilitate The final revised IPSASs will Preface be and published on the the new and IPSASB website ( fourth quarter of 2006 and in the Handbook of International Public Sector Pronouncements Accounting IFAC Appoints New IPSASB Technical Director
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e Comments on the proposed IEPS, which org/ 2006. continued fromcontinued 2 page mitment that enhances the professional accountants’ ethical judgment and deci sion making. The proposed these skills IEPS develop to bodies member help will account professional future and current in ants. It provides guidance for bodies member on ethics education through con development. professional tinuing Co-operation and Development, the Euro the Development, and Co-operation pean Commission, the North Treaty Atlantic Organisation and IFAC, IPSASs. which adopted have IFAC the visit Spanish, in IPSASs download and free-of-charge To French English, ( bookstore online reporting reporting standards for the public sector recommended as reporting, statistical with by the International Task Force on Har Accounting. Sector Public of monization The not new require, governments to IPSAS disaggregate permits, but their does consolidated financial statements to disclose financial information about the general government sector and specifies are how such disclosures to be made. The those of consists sector government general full consideration of the comments received received comments the of consideration full that intended is It drafts. exposure these on the IPSASs will apply to financial state ments issued for periods reporting ending 2008.1, January after on or General Government Sector Also at its July approved meeting, a new the IPSAS on IPSASB Financial Information about the General Government Sector as part its project to converge financial ties. ties. The changes were proposed in the exposure IPSASB’s drafts 25 and 26, and the final standards were developed after Education Board Proposes New Guidance on Ethics Training
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as part of the international conver and and Errors 4, IPSAS Rates Exchange Foreign IPSAS 1, 1, IPSAS Statements 3, IPSAS Estimates in Accounting Changes Preface Preface to International Public Sector
• • • • • General Assembly approved a financial approved Assembly General that calls program reform management n September, the United Nations’ (UN) Nations’ the United n September, ments ments and international organizations, such as the Organisation for Economic port the effective use of and accounting for for accounting and of use effective the port its resources. The UN joins a number of govern UN and its agencies to have a comprehen to have UN and its agencies sive and view consistent of their financial sup will which performance, and position fied accrual to full accrual, which provides provides which fullaccrual, to fiedaccrual a more comprehensive financial picture. The adoption of IPSASs will enable the financial processes and and transactions. financial processes IPSASs, use to decision its of result a As modi of a system from the UN will move Standards Standards Board, is an important step credi the enhancing and maintaining transparency and authority of the Sector Accounting Standards (IPSASs). The The (IPSASs). Standards Accounting Sector developed are which IPSASs, of adoption Account Sector Public International the for for the UN to adopt International Public where where appropriate for public sector enti the the IPSASs to changes made to International related Financial Reporting Stand ards (IFRSs) as of December 31, 2003, The The amendments were made to conform of eleven revised IPSASs being consid ered gence project: Accounting Standards Accounting Convergence with IFRSs The IPSASB has approved the first three International International Public Sector Accounting Standards (IPSASs) and an the update to A (IPSASB) approved four new or revised Sector Accounting Standards UN Adopts International Public
IPSASB IPSASB Approves New Standards; Updates to Preface I A Newsletter for the International Accountancy Profession OCTOBER 2006 8 I Professional Accountants in Business in Accountants Professional Support to Guidance New Releases Committee © ness plan may serve as a performance tool performance a as serve may plan ness information paper describes how the busi SMEs for Application Practical Guide: Entitled plan. business a developing in advisors practice medium and small their and (SMEs) entities sized ants and managers of small- and medium- account professional assist to guidance released Committee PAIB the May, In SMEs for Planning Business system. control internal an of tion implementa effective the to organization the throughout framework ethical and tance of the tone at the top and the culture environments. It also identifies the impor external and internal specific own their to particular are that inter systems control nal develop to commitment a make organizations which in approach based controls support a principles- and market- internal on views current that finds paper The governance. corporate enhancing in control internal of role the and initiatives, other and legislative recent frameworks, key including control, internal in ments ments Develop Current of Review A – Controls released a new information paper, committee the August, In program. work its within activity of area major a control internal made has Committee PAIB The Controls Internal articlebelow). tionpapers sustainabilityon reporting (see Committee has released two new informa Merit annual committee’s the and entities, medium and small for planning business controls, internal on guidance newinclude These issues. in keyaddressing business in accountants professional 2006 International Federation of Accountants of Federation International 2006
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