Speaking at the Higher Education Forum of the National Association of College and University Business Officers (NACUBO) in Miami, FL, on April 26, 2009, Robert L. Bunting, President of the International Federation of Accountants (IFAC), described the enormous changes happening as a result of the global financial crisis and explained why convergence and implementation of international standards is needed to rebuild and sustain the global financial system.

"We are rapidly moving to one world in accounting, auditing, and corporate governance," emphasized Mr. Bunting, adding, "IFAC is expediting the development of standards and guidance on key issues, such as going concern, fair value, financial instruments, and corporate governance-and other issues that have been raised as a result of the crisis-so accountants worldwide operate on a level playing field."

He pointed out that government bailouts of the financial and automotive industries are also resulting in calls for greater accountability and transparency on the part of governments, and indicated that governments can achieve this by adopting International Public Sector Accounting Standards (IPSASs). "Convergence to international public sector accounting standards, which has proceeded at a slower pace than convergence to those in the private sector, is now urgent," Mr. Bunting emphasized. Such standards are used by the United Nations, NATO, IFAC, and the Organisation for Economic Co-operation and Development, are supported and promoted by the World Bank, and are already used by many governments around the world.

Mr. Bunting called on university leaders to broaden their curriculum to address the growing need for convergence to international standards: "Teaching only US GAAP (Generally Accepted Accounting Principles) handcuffs students to the US economy. Academic institutions must incorporate International Standards on Auditing, IPSASs, and International Financial Reporting Standards into their accounting curriculum."

Bunting's comments on international standards were part of a presentation about the future of the accounting profession and how universities must broaden their view of what students need-and what the world needs-from accountants.

About IFAC
IFAC (www.ifac.org) 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 158 members and associates in 123 countries, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. In addition to setting international public sector financial reporting standards through the IPSASB, IFAC, through its independent standard-setting boards, sets ethics, auditing and assurance, and education standards. It also issues guidance to encourage high-quality performance by professional accountants in business.

The International Federation of Accountants (IFAC) has released the 2009 Handbook of International Standards on Auditing and Quality Control. The handbook can be downloaded from the IFAC online bookstore (www.ifac.org/store), and print copies can be ordered for shipment in early May.
 
The handbook brings together all the International Standards on Auditing and the International Standard on Quality Control that have been redrafted by the International Auditing and Assurance Standards Board (IAASB) to improve their clarity. It also includes a Glossary of Terms and the Preface to the International Standards on Quality Control, Auditing, Review, Other Assurance and Related Services. These become effective on December 15, 2009. This handbook replaces Part II of the 2008 Handbook of International Standards on Auditing, Assurance, and Ethics Pronouncements.

Part I of the 2008 Handbook of International Auditing, Assurance, and Ethics Pronouncements will remain in effect during 2009. It contains pronouncements on auditing, review, other assurance, and related services issued by the IAASB as of January 1, 2008. It also includes the IFAC Code of Ethics for Professional Accountants, issued by the International Ethics Standards Board for Accountants. The pronouncements on auditing in Part I of the 2008 Handbook of International Auditing, Assurance, and Ethics Pronouncements will remain in effect up to December 14, 2009; thereafter, they will be replaced by those contained in the 2009 handbook.

How to Order
The 2009 Handbook of International Standards on Auditing and Quality Control can be downloaded in PDF format or ordered for US$85.00 plus shipping from the IFAC online bookstore (www.ifac.org/store). Discounts are available for students, academics, and individuals living in developing countries, as well as for orders of 10 or more copies. Orders can also be placed by calling IFAC at +1 (212) 471-8722.

About the IAASB and IFAC
The objective of the IAASB, an independent standard-setting board within IFAC, is to serve the public interest by setting high-quality auditing and assurance standards and by facilitating the convergence of international and national standards, thereby enhancing the quality and uniformity of practice throughout the world and strengthening public confidence in the global auditing and assurance profession. The Public Interest Oversight Board oversees the activities of the IAASB, and, as one element of that oversight, establishes the criteria for its due process and working procedures.

IFAC (www.ifac.org) 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 158 members and associates in 123 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. In addition to setting international auditing and assurance standards through the IAASB, IFAC, through its independent standard-setting boards, sets ethics, education, and public sector accounting standards. It also issues guidance to encourage high-quality performance by professional accountants in business.

The International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC) is proposing new financial reporting requirements to assist public sector entities in accounting for financial instruments, such as derivatives, bonds, and loans. These proposed requirements are contained in three newly released exposure drafts (EDs): ED 37, Financial Instruments: Presentation, ED 38, Financial Instruments: Recognition and Measurement, and ED 39, Financial Instruments: Disclosures.

“The unprecedented scale of governmental intervention in the financial sector makes it essential that global transparency and accountability is enhanced through consistent financial reporting of their exposures to financial instruments. Approval of these EDs is just the beginning of a process by which the IPSASB will develop guidance that addresses financial instruments for the public sector and, in doing so, to ultimately develop guidance that addresses further public sector-specific issues,” states Mike Hathorn, Chair of the IPSAS.

The EDs propose IPSASs that converge with the International Accounting Standards Board’s standards for financial instruments as at December 31, 2008, with limited changes, representing a significant step in the IPSASB’s global convergence program, scheduled for completion by December 31, 2009. As part of this program, International Public Sector Accounting Standards will substantially converge with International Financial Reporting Standards approved at December 31, 2008, with limited changes to ensure consistency with other IPSASs, while addressing specific public sector issues.

Additional application guidance has been included in each ED on two key public sector issues. These are provision by government of financial guarantees that are given at zero cost or below market price and, secondly, concessionary loans (loans at below market interest rates). Governments have been using financial guarantees, such as guaranteeing bank deposits and low interest rate loans to support private sector businesses during the current economic crisis. Similar arrangements were also used prior to the crisis, often to achieve social objectives, such as to provide housing assistance.

How to Comment
Comments on EDs 37–39 are requested by July 31, 2009. The EDs may be viewed by going to www.ifac.org/EDs. Comments may be submitted by email to EDComments@ifac.org and stepheniefox@ifac.org. They can also be faxed to the attention of the IPSASB Technical Director at +1 (416) 977-8585, or mailed to the IPSASB Technical Director at 277 Wellington Street West, 4th Floor, Toronto, Ontario M5V 3H2, Canada. All comments will be considered a matter of public record and will ultimately be posted on the IFAC website.

About IFAC
IFAC (www.ifac.org) 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 158 members and associates in 123 countries, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. In addition to setting international public sector financial reporting standards through the IPSASB, IFAC, through its independent standard-setting boards, sets ethics, auditing and assurance, and education standards. It also issues guidance to encourage high-quality performance by professional accountants in business.

Speaking yesterday to staff at the World Bank in Washington, D.C., Robert L. Bunting, President of the International Federation of Accountants (IFAC), said that the global accounting profession, with the support of the World Bank, must move ahead decisively with implementing a single set of high-quality international financial reporting and auditing standards. "Implementation is vital to strengthening global financial systems, especially during this time of economic crisis," stated Mr. Bunting. 

He said that IFAC is committed to working closely with the World Bank and other institutions to deliver assistance efficiently where it can have the greatest impact. He cited two critical areas where the two organizations must build on current synergy:

• To establish the appropriate professional accounting infrastructures and legal and regulatory mechanisms in developing and other countries; these are necessary pre-requisites for the effective implementation of standards; and
• To urge reforms of public sector financial management systems, encouraging increased government accountability and the adoption of accrual accounting where resources permit.

Mr. Bunting emphasized IFAC support for the extension of work in these areas by the World Bank and the International Monetary Fund.

He also noted that IFAC has called on the G20 to support the World Bank's Reports on the Observance of Standards and Codes (ROSC) initiative as a tool to assess a country's financial reporting architecture and measure the future effectiveness of economic reforms resulting from the economic crisis.

In his remarks, Mr. Bunting also pointed out that small- and medium-sized entities (SMEs) and micro-entities require special attention. Some of these entities will be the next Microsofts, Googles, and IKEAs, contributing new jobs, innovation, and wealth to national and international economies if they are allowed to innovate and grow.  "SMEs face challenges that are exacerbated in times of economic crisis-the ability to obtain capital and the rising costs of fuel, supplies, and other factors of production," Mr. Bunting explained. "We must take care not to further exacerbate these challenges through unnecessary and inappropriate re-regulation of the private sector and we must consider the cost-burden of their meeting regulatory and compliance requirements."

While IFAC-with 158 members in 123 countries and jurisdictions-is known for its work in establishing international standards for auditing, education, ethics, and public sector accounting, Mr. Bunting pointed out that one of its less-recognized roles will increase in importance in the coming years: as a facilitator and driver of the adoption and implementation of high-quality international standards.

"IFAC is committed to providing leadership on implementation issues by encouraging and facilitating collaboration among firms, practitioners, member bodies, regulators, and other stakeholders," stated Bunting, adding, "To do so effectively, the world must agree on a single set of standards."

To view Mr. Bunting's full speech, go to the IFAC Media Center at http://www.ifac.org/MediaCenter/?q=node/view/638.

About IFAC
IFAC (www.ifac.org) 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 158 members and associates in 123 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. Through its independent standard-setting boards, IFAC sets international ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high-quality performance by professional accountants in business.

Over 70 partners and senior executives from 24 international networks of accounting firms recently met in London to share their experiences, industry insights, and current practices at a symposium on Going Concern and Related Audit Considerations. Panels of experts were assembled with the support of the four largest networks to lead discussions on various topics, including companies' access to funding, financial statement and audit report implications related to going concern, as well as other related audit considerations, such as valuation and impairment, materiality, and internal control implications.

"This event is the second in a developing initiative by the Forum of Firms to collectively share, examine, and evolve current practice in dealing with the many challenges facing auditors and the profession flowing from the current economic situation. It brings together the Forum membership in a unique manner to hear and openly exchange views, including hearing the latest developments from the International Auditing and Assurance Standards Board (IAASB)," states David Maxwell, Chair of both the symposium and the Forum of Firms.

The symposium commenced with a jurisdictional analysis of accounting and auditing standards, followed by a presentation on IAASB perspectives with particular emphasis on the IAASB's Staff Audit Practice Alert, Audit Considerations in Respect of Going Concern in the Current Economic Environment, issued in January 2009. The symposium then focused on some of the practical auditing considerations being faced by auditors across a broad spectrum of industries. This resulted in discussion from a wide range of perspectives and suggestions of practical guidance to help auditors navigate through today's economic climate. The importance of carefully considering assumptions associated with client business models, getting a more intimate understanding of financing arrangements, as well as transparency in disclosures were key focus areas.

"The symposiums are designed to disseminate good practice in an area of critical importance in today's environment and to support both Forum members and the broader Forum objective of providing the highest quality audit services," points out David Maxwell.

About the Forum of Firms
The Forum of Firms is an association of networks of international accounting firms that perform transnational audits. Members of the Forum have committed to adhere to and promote the consistent application of high-quality audit practices worldwide, including the use of International Standards on Auditing, and the maintenance of appropriate quality control standards in accordance with International Standards on Quality Control issued by the International Auditing and Assurance Standards Board. Through their organizations, members also conduct globally coordinated internal quality assurance reviews on a regular basis and have policies and methodologies that conform to the International Federation of Accountants' Code of Ethics for Professional Accountants. The Transnational Auditors Committee is the Executive Committee of the Forum of Firms and a committee of the International Federation of Accountants.