Welcome to IFAC's Translations and Permissions eNews.

In This Issue:

1. Ibero-American Cooperation Progresses Spanish Translations
2. Russian Speakers, Standard Setters Convene on Adoption of International Standards
3. Newly Available Translations: January–May 2013
4. What to Watch for—French PAO Development Committee “Toolkit”
5. SMP Quick Poll—Open in 16 Languages
6. Copyright Statements Revised; See Updated T&P Policy Statements

1. Ibero-American Cooperation Progresses Spanish Translations

In October 2012, IFAC and its member bodies in Spain, Mexico, and Argentina formally agreed to establish an Ibero-American Cooperation Framework to collaborate on a long-term, sustainable process for achieving a single, Spanish translation of international standards and IFAC publications (the “IberAm project”). In February, the IberAm project’s Executive Committee held an inaugural meeting to agree on an annual translations plan, formulated following a gap analysis to see what publications had not yet been translated into Spanish.

The Executive Committee also appointed a chair of the Review Committee. Spanish-speaking IFAC member bodies have been invited to nominate candidates from among their membership to fill the five remaining open positions on the Review Committee. Qualified candidates will have sufficient experience in translation and applying international standards, and be well respected both within and outside of the profession. Nominations should be emailed to internacional@icjce.es to the attention of D. Bruno Mayoral. The successful candidates will be appointed and announced in late July.

Under the agreed plan, a Spanish translation of existing standards will be completed by the end of 2013; this includes the International Standards on Auditing and other standards issued by the International Auditing and Assurance Standards Board (IAASB); the Code of Ethics for Professional Accountants; International Education Standards; and International Public Sector Accounting Standards. The 2013 IAASB Handbook is expected to be released in July 2013; under the plan, the goal is to have the Spanish translation available within approximately six months of the English release.

To this end, the three IFAC member bodies have also procured translation memory software as a collaborative tool to help ensure the quality and consistency of the translations and to assist in reducing translation costs. With the software, it is not necessary to translate the same phrase twice. For more information on the advantages of translation memory software, especially as it relates to translation of the international standards and IFAC publications, please contact permissions@ifac.org.

In addition, Instituto Nacional de Contadores Públicos (INCP) – Colombia has agreed to translate IFAC news items into Spanish. See the Spanish News & Events pages to access translated newsletters and press releases. Translations of IFAC Update and Global Digest are available to member designees in the password-protected IFAC Extranet. For more information on Spanish-language or other translations, please visit the IFAC Translations Database.

2. Russian Speakers, Standard Setters Convene on Adoption of International Standards

Representatives from former Soviet republics in Europe and Central Asia gathered last month in London with IFAC, the International Auditing and Assurance Standards Board (IAASB), and the International Accounting Standards Board (IASB) to foster dialogue and cooperation in relation to the development, adoption, and implementation of international standards, in the context of relevant regulatory frameworks.

The two-day conference, hosted by the Association of Chartered Certified Accountants, included meetings with national professional accountancy organizations and the three organizing bodies regarding experiences with the application of International Financial Reporting Standards, adoption and implementation of International Standards on Auditing (ISAs), and quality assurance requirements. The translation of IAASB and IASB pronouncements into Russian and other languages on an ongoing basis was also a significant topic of discussion.

3. Newly Available Translations: January–May 2013

• Bulgarian—Good Practice Checklist for Small Business (2012)
• Chinese—Global Leadership Survey (2011, 2012)
• Czech—Handbook of the Code of Ethics for Professional Accountants (2012)
• Danish—International Standard on Assurance Engagements (ISAE) 3402, Assurance Reports on Controls at a Service Organization (2009); International Standard on Review Engagements 2400, Engagements to Review Historical Financial Statements (2012); International Standard on Auditing (ISA) 610 (Revised), Using the Work of Internal Auditors (2012); ISA 315 (Revised), Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment (2012)
• Dutch—ISAE 3402, Assurance Reports on Controls at a Service Organization (2009); Guide to Practice Management for Small- and Medium-Sized Practices, Third Edition (2012)
• French—Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities (2012)
• German—Tomorrow’s Firm and the Role of Value Pricing: IFAC Interview with Ronald J. Baker (2013)
• Hungarian—Handbook of the Code of Ethics for Professional Accountants (2010), “Integrating Governance throughout an Organization Helps Achieve Sustainable Success” (2011)
• Korean—The Role of Ethics in Restoring Confidence: Interview with International Ethics Standards Board for Accountants (IESBA) Chair Jörgen Holmquist (2013)
• Latvian—Guide to Quality Control for Small- and Medium-Sized Practices (2011)
• Lithuanian—Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities, Third Edition (2011)
• Polish—International Standard on Review Engagements (ISRE) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity (2012)
• Romanian—Competent and Versatile: How Professional Accountants in Business Drive Sustainable Success (2011), International Good Practice Guidance: Principles for Effective Business Reporting Processes (2013), Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements (2012)
• Russian—Handbook of International Public Sector Accounting Pronouncements (2011)
• Serbian—Guide to Quality Control for Small- and Medium-Sized Practices, Third Edition (2011), Handbook of the Code of Ethics for Professional Accountants (2012)
• Spanish—Guide to Practice Management for Small- and Medium-Sized Practices (2011), International Auditing and Assurance Standards Board eNews March 2013 (2013),March Global Digest (2013), April Global Digest (2013), IFAC Update March 2013 (2013), IFAC Update April 2013 (2013), IESBA eNews April 2013 (2013), SMP eNews April 2013 (2013), International Public Sector Accounting Standards Board eNews April 2013 (2013)
• Swedish—Guide to Practice Management for Small- and Medium-Sized Practices (2011), Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities, Third Edition - Volume 2 (2011)
• Turkish—Handbook of International Quality Control, Auditing Review, Other Assurance, and Related Services Pronouncements (2012), Handbook of the Code of Ethics For Professional Accountants (2012), IFAC SMP Quick Poll: 2012 Round-Up (2013)
• Vietnamese—Handbook of International Standards on Auditing and Quality Control (2009)

Access these and additional translations in IFAC’s Translations Database. Check back regularly for updates.

4. What to Watch for—French PAO Development Committee “Toolkit”

Establishing and Developing a Professional Accountancy Body covers the roles and responsibilities of a professional accountancy organization, education and examinations, and capacity development; Tools and Resources to Support the Development of the Accounting Profession includes case studies, practical illustrations, and supplementary guidance. Together they form the Professional Accountancy Organization (PAO) Development Committee “Toolkit,” developed to support PAOs in expanding and strengthening their role and responsibilities. Ordre des Experts Comptables de Tunisie is currently translating the nearly 300-page set into French. Look for access to the completed translation by year end in the Translations Database.

5. SMP Quick Poll—Open in 16 Languages

Are you a practitioner operating in a small- or medium-sized practice (SMP)? Then take the IFAC SMP Quick Poll. This edition of the poll is being conducted in 16 languages—English, Arabic, Chinese, Dutch/Flemish, French, German, Hebrew, Italian, Japanese, Korean, Portuguese, Romanian, Russian, Spanish, Swedish, and Turkish—thanks to the generous translation support of IFAC member bodies. The poll should take only three minutes to complete and is being conducted semi-annually by IFAC in 2013 to take a snapshot of the key issues confronting SMPs and their small- and medium-sized entity (SME) clients. Polling will close on June 21, 2013. Look for the results in the next issue of the SMP eNews (register and subscribe here).

See the results from previous polls on our website.

6. Copyright Statements Revised; See Updated T&P Policy Statements

IFAC’s Translations & Permissions (T&P) Policies, Policy for Translating and Reproducing Standards Published by the International Federation of Accountants and Policy for Reproducing, or Translating and Reproducing, Publications of the International Federation of Accountants, have been updated to reflect our new copyright statement. Please visit the IFAC website to download the newest forms when requesting permission to translate and reproduce IFAC publications. Requesting permission should be done prior to commencing any translation work, as it helps ensure proper authorization and assistance from IFAC and helps to avoid duplication of effort and resources. Guidelines are also available for use of IFAC graphics and logos on translated publications. If you have any questions, see our FAQs or email permissions@ifac.org.

Welcome to IFAC's Professional Accountants in Business Committee (PAIB) eNews.

In This Issue

GOVERNANCE, RISK, AND CONTROL
1. Internal Control Guidance Published as Executive Summary; Available for Local Customization
2. IFAC Staff Discuss Risk Management at ICAP CFO Conference
3. Updated Internal Control Framework Released by COSO
4. Conference on ISO Risk Management Standard to be Held in Toronto 

INTEGRATED AND SUSTAINABILITY REPORTING
5. IIRC Releases Integrated Reporting Framework
6. Proposed Sustainability Accounting Standards Released by SASB
7. GRI Global Conference Approaching
8. New Report Argues Business Case for Natural Capital

EVENTS
9. World Congross of Accountants 2014 to be Held in Rome; Sponsorship Opportunities Available

GOVERNANCE, RISK AND CONTROL 

1. Internal Control Guidance Highlights Published as Executive Summary; Available for Local Customization

The Professional Accountants in Business Committee recently published Evaluating and Improving Internal Control in Organizations: Executive Summary, part of the International Good Practice Guidance series. The condensed version of the guidance summarizes the principles and the importance of effective systems of internal control, as well as explains some of the pitfalls that can be avoided. The executive summary is available to IFAC members and associates for local customization and/or translation. If your organization is interested, please visit the Translations and Permissions page of the IFAC website for the permission request form, which will need to be completed and submitted to permissions@ifac.org. If you have any questions, please contact Vincent Tophoff.

2. IFAC Staff Discuss Risk Management at ICAP CFO Conference

IFAC staff recently participated in the Institute of Chartered Accountants of Pakistan (ICAP)’s CFO Conference, lecturing on current trends and thinking in risk management and best practices. The presentation, Strategic Risk Management in the Face of Uncertainty and Unexpected Risks, is available on the IFAC website.

3. Updated Internal Control Framework Released by COSO

The Committee of Sponsoring Organizations of the Treadway Commission (COSO)  recently released the revised version of Internal Control-Integrated Framework to improve implementation of internal control.

Changes within the Framework include:

• articulating the fundamental concepts underlying the five components by highlighting 17 guiding principles and more detailed points of focus;
• accounting for environmental changes, such as increased globalization, complexity, and regulation, the growing importance of technology, and increased expectations for better governance oversight and fraud prevention;
• expanding the operations objective from “effective and efficient use of the entity’s resources” to “effectiveness and efficiency of the entity’s operations, including operational and financial performance goals, and safeguarding assets against loss”;
• broadening the reporting objective from “published financial statements” to “internal and external financial and non-financial reporting”; and
• providing additional approaches and examples relevant to operations, compliance, and non-financial reporting objectives.

The PAIB Committee has been closely involved in the revision, with two representatives on the COSO advisory council for the project. The PAIB Committee also submitted formal comment letters to both COSO internal control exposure drafts.

4. Conference on ISO Risk Management Standard to be Held in Toronto

The 2^nd International Conference on ISO 31000 [Risk Management] Standard will be held May 28-31, 2013, in Toronto, Canada. ISO 3100—Risk Management provides principles, framework, and a process for managing risk. It can help organizations increase the likelihood of achieving objectives, improve the identification of opportunities and threats, and effectively allocate and use resources for risk treatment. IFAC staff will be presenting on how to leverage ISO 31000 for effective integration of risk management and internal control.

INTEGRATED AND SUSTAINABILITY REPORTING 

5. IIRC Releases Integrated Reporting Framework

The landmark International Integrated Reporting Framework has been released by the International Integrated Reporting Council (IIRC). The Framework is expected to be a critical tool for businesses as they create integrated reports and drive integrated thinking in their organizations. The IIRC is asking all stakeholders to provide feedback on the Framework during its public consultation period, which closes July 15, 2013. The Framework has been released in English but will also be available soon in additional languages. IFAC, a partner in this global effort, encourages all professional accountants to provide feedback.

In support of the Framework, IFAC, the Chartered Institute of Management Accountants, and PwC released Business Model: A Background Paper for Integrated Reporting, which addresses the wide variation in how organizations define their business models and approaches. The paper provides background and context on how business model reporting should be undertaken in an integrated report and suggests content for business model reporting requirements, which are included in the proposed Framework. The proposed definition and guidance in the paper aim to bridge the varied interpretations by highlighting commonalities and ensuring a broad and inclusive application across industries and sectors. Additional background papers are available on the IIRC website.

6. Proposed Sustainability Accounting Standards Released by SASB

The Sustainability Accounting Standards Board (SASB) has released a set of proposed sustainability accounting standards for the financial sector. Industries included in this sector are: asset management and custody activities, investment banking and brokerage, commercial banking, consumer finance, mortgage finance, security and commodity exchanges, and insurance. The public comment period closes on June 14, 2013.

7. GRI Global Conference Approaching

The Global Reporting Initiative (GRI) is holding the Global Conference on Sustainability and Reporting in Amsterdam, the Netherlands, May 22-24, 2013. The conference will provide the opportunity to connect, share successful strategies, and collaborate on efforts to build a sustainable global economy. Additionally, the latest evolution of GRI’s Sustainability Reporting Guidelines (G4) will be released at the conference. GRI expects more than 1,500 leaders and practitioners from over 70 countries, including representatives from business, financial institutions, civil society, international organizations, governments, labor, and academia.

8. New Report Argues Business Case for Natural Capital

Organisational Change for Natural Capital Management, released by The Economics of Ecosystems and Biodiversity (TEEB) for Business Coalition, describes how business leaders can strategize and implement changes in organizational behavior related to valuing natural capital in their companies. The TEEB for Business Coalition, which includes IFAC, supports the development of natural and social capital valuation in business, including providing a compelling economic case for the conservation of natural capital as the cornerstone of green economic policies. 

EVENTS

9. World Congress of Accountants 2014 to be Held in Rome; Sponsorship Opportunities Available

The next World Congress of Accountants (WCOA) will be hosted by the Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC) in Rome, Italy, in 2014. Themed 2020 Vision: Learning from the Past, Building the Future, the 2014 WCOA will be held November 10-13 at the Auditorium Parco della Musica. More than 4,000 professionals from all over the world will convene at this can’t-miss IFAC event, held every four years. WCOA 2014 will look back to explore the evolution of the accountancy profession and forward to showcase the innovations that will set the tone for the future

The WCOA also affords an unparalleled opportunity for organizations and firms to share their projects and visions with the world by taking advantage of one of our carefully crafted sponsorship packages. There are numerous options so you’ll be able to select the one that best suits your organization’s unique strategy and goals. For more information, please contact info@wcoa2014rome.com or Dimarco@wcoa2014rome.com.

Bienvenido al eNews del Comité de Firmas Pequeñas y Medianas (SMP) de la IFAC.

SOSTENIBILIDAD

1. Sostenibilidad: Retos y Oportunidades para SMPs y PYMES
2. Nueva Lista de Verificación de Buenas Prácticas Abarca Gestión Ambiental

NORMAS Y REGULACIÓN

3. Cerrarán Pronto: Consultas del  IAASB sobre Marco de Calidad de Auditoría
4. Comité SMP Contribuye en los Proyectos Claves y la Planeación Estratégica de los Emisores de Normas
5. IFRS para Actualización de PYMES

EVENTOS
6. Inscripciones Cerrarán Pronto: Foro SMP de la IFAC 2013
7. Congreso Mundial de Contadores 2014 se Llevará a Cabo en Roma; Oportunidades de Patrocinio Disponibles

SOSTENIBILIDAD

1. Sostenibilidad: Retos y Oportunidades para SMPs y PYMES

Las Pequeñas y Medianas Empresas (PYMES) podrían pensar que la sostenibilidad es relevante únicamente en las grandes compañías. Tal vez consideran que no pueden darse el lujo de ser sostenibles, que la medición y la gestión ambiental se traducirían en una carga costosa e innecesaria. Adicionalmente, sus contadores, tanto aquellos empleados por la empresa (contadores en empresas) como aquellos que proveen servicios a la empresa (contadores en la práctica), le dirán que es muy difícil que las PYMES adopten la sostenibilidad. No obstante, aquellas PYMES que integran la sostenibilidad en su estrategia central de negocios pueden beneficiarse de costos menores, un riesgo reducido y nuevas oportunidades. Por otra parte, sus contadores -quienes generalmente operan en SMPs- podrían desempeñar un rol clave.  

PYMES y los Beneficios de la Sostenibilidad

Las PYMES son fundamentalmente importantes para la salud y estabilidad económica global: ellas representan más del 95% de los negocios y la mayor parte del producto bruto interno (PBI) del sector privado, riqueza y creación de empleo e impactos sociales y ambientales. Entretanto, existe una inmensa presión frente al ambiente natural y se reconoce que los recursos finitos se están agotando rápidamente. Actualmente, las PYMES se enfrentan a una presión de medición y gestión de su impacto sobre el medioambiente. Forman parte esencial de la cadena de suministro donde existe una demanda creciente frente a la gestión de la sostenibilidad, tanto por parte de los consumidores como de los proveedores –particularmente para las PYMES que desean asegurar contratos con gobiernos o compañías más grandes. Las PYMES deben garantizar igualmente que tienen acceso a los recursos que necesitan a fin de continuar ofreciendo sus productos y servicios en el futuro.     

Sin embargo, muchas PYMES aún consideran que no es necesario abarcar los temas de sostenibilidad. Nuestra encuesta SMP global indica que existen otros aspectos más urgentes que preocupan a las empresas, incluyendo temas económicos y el cumplimiento con nuevas normas, lo cual hace que la sostenibilidad no sea el aspecto más importante en su lista de prioridades.

Esta podría ser la razón por la cual pocas SMPs ofrecen actualmente servicios de sostenibilidad. Sin embargo, a largo plazo, la sostenibilidad será un tema inevitable.

La buena noticia es que existe una gran cantidad de evidencia que indica que las iniciativas de sostenibilidad, como aquellas para reducir el impacto ecológico de las PYMES, permiten igualmente mejorar su Balance...Leer Más.

Únete al Debate en nuestra Comunidad SMP LinkedIn. Referirse a artículos SMP adicionales, incluyendo la reciente entrevista con Ron Baker, La Firma del Mañana y el Rol del Valor Justo. 

2. Nueva Lista de Verificación de Buenas Prácticas Abarca Gestión Ambiental  

La segunda edición de la Lista de Verificación de Buenas Prácticas para Pequeñas Empresas ya se encuentra disponible. Esta lista de verificación de múltiples partes contiene una sección sobre la gestión ambiental. Otras secciones cubren tareas financieras y de gestión estratégica y requerimientos regulatorios. La lista de verificación representa principalmente una herramienta de mercadeo o de diagnosis para las SMPs, a fin de permitirles determinar la asesoría que podría necesitar un cliente y ayudarles a administrar sus propios negocios. Seis traducciones de la lista de verificación han sido completadas o están en progreso. Referirse a la Base de Datos de Traducciones para mayor información.

NORMAS Y REGULACIÓN

3. Cerrarán Pronto: Consultas del IAASB sobre Marco de Calidad de Auditoría

El periodo de comentario atribuido al Documento de Consulta, Un Marco para la Calidad de Auditoría, del Consejo de Normas Internacionales de Auditoría y Aseguramiento (IAASB) cerrará el 15 de Mayo, 2013. A través del marco propuesto, el IAASB pretende aumentar el conocimiento de los elementos claves de la calidad de auditoria, instar a las partes interesadas a explorar maneras de mejorar la calidad de auditoría, y facilitar un mayor diálogo sobre el tema. El Comité SMP entregará una carta de comentario e invita a las SMPs individuales a comentar igualmente. Referirse al Resumen At-a-Glance.

4. Comité SMP Contribuye en los Proyectos Claves y la Planeación Estratégica de los Emisores de Normas 

IAASB

El Comité SMP entregó sus comentarios al Consejo de Normas Internacionales de Auditoría y Aseguramiento (IAASB) sobre su proyecto del informe del auditor, antes de su junta en Febrero. Referirse a la Página de la Junta de Febrero del IAASB para visualizar los documentos, los puntos destacados y el podcast. Antes de la Junta de Abril del IAASB, el comité entregará mayores comentarios sobre este proyecto al igual que sobre el trabajo del IAASB relacionado con las revelaciones, el monitoreo de la implementación de Normas Internacionales de Auditoría (NIA) y la Norma Internacional sobre Contratos de Aseguramiento (ISAE) 3000.

El IAASB desea recibir comentarios, opiniones y perspectivas de todas las partes interesadas a fin de moldear su dirección futura para el 2015 y en adelante, a través de la Encuesta de Revisión Estratégica. Las respuestas a la encuesta serán la base para el desarrollo de un Documento de Consulta que será emitido a finales del año 3013. El Comité SMP ha planeado enviar una respuesta e invita igualmente a las SMPs individuales a comentar.

IESBA

A inicio de marzo, el comité respondió a la encuesta en línea del Consejo de Normas Internacionales de Ética para Contadores (IESBA), lo cual se llevó a cabo como parte de la revisión estratégica y el plan de trabajo del IESBA para el periodo 2014-2016. La encuesta ha cerrado y el IESBA revisará las respuestas en sus próximas juntas.

5. IFRS para Actualización de PYMES

En el 2012, el Consejo de Normas Internacionales de Contabilidad (IASB) emitió una Solicitud de Información (RFI por sus siglas en inglés) con el objetivo de dar inicio a su revisión exhaustiva de la Normas Internacionales de Información Financiera para Pequeñas y Medianas Empresas (IFRS para PYMES). El objetivo de la RFI era consultar de manera pública qué tan necesario era enmendar la norma. El mes pasado, el IASB inició un debate acerca del alcance de la norma, incluyendo la interrogante sobre el uso de la norma por parte de entidades de responsabilidad pública. Referirse a la Página de la Junta de Marzo del IASB para acceder a los documentos y el registro audio. El resumen de las decisiones se encuentra disponible en la Actualización IASB de Marzo.

EVENTOS

6. Inscripciones Cerrarán Pronto: Foro SMP de la IFAC 2013

El Foro SMP 2013 de la IFAC se llevará a cabo en Kampala, Uganda, el 5 de Junio de 2013 y será organizado por el Instituto de Contadores Públicos Certificados de Uganda (ICPAU) y la Federación Panafricana de Contadores (PAFA). Cada organización miembro de la IFAC puede enviar hasta diez delegados, quienes deben ser los encargados de los asuntos SMP/PYME en su organización. Los formatos de inscripción han sido enviados a las organizaciones miembros de la IFAC. Si usted es un miembro individual de una organización miembro de la IFAC y desea participar, favor informar su interés a su organización tan pronto como sea posible, dado que la fecha límite de registro es Abril 30, 2013. Mayor información será publicada en la página www.ifac.org/2013SMPForum a medida que sea emitida.

7. Congreso Mundial de Contadores 2014 se Llevará a Cabo en Roma; Oportunidades de Patrocinio Disponibles  

El Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC) será anfitrión del siguiente Congreso Mundial de Contadores (WCOA) en Roma, Italia en el 2014. Titulado Visión 2020: Aprendiendo del Pasado, Creando el Futuro, el WCOA 2014 se realizará en Noviembre 10-13 en el  Auditorium Parco della Musica. Más de 4,000 profesionales del mundo entero se reunirán en este evento de la IFAC que se lleva a cabo cada cuatro años. El WCOA 2014 analizará el pasado y explorará la evolución de la profesión contable y mirará hacia el futuro a fin de presentar las innovaciones que moldearán el futuro de la profesión.

El WCOA ofrece igualmente una plataforma a fin que las organizaciones y firmas adapten sus proyectos y visiones a través de diferentes oportunidades de patrocinio. Para mayor información, contactar a info@wcoa2014rome.com o Dimarco@wcoa2014rome.com.

Gracias por registrarse para recibir el eNews del Consejo de Normas Internacionales de Ética para Contadores (IESBA). Esta edición del eNews del IESBA ofrece un resumen de decisiones tomadas durante la junta del IESBA llevada a cabo en marzo 11-13 de 2013, en Nueva York, Estados Unidos. Referirse a la Página de la junta para visualizar los puntos destacados de la junta, incluyendo un resumen en versión podcast y documentos de la agenda. 

1. Respondiendo a un Acto Ilegal Sospechado
2. Asociación de Personal Directivo (incluyendo Rotación de Socios) con un Cliente de Auditoría
3. Revisión de la Parte C del Código
4. Estructura del Código
5. Definición de Los Encargados del Gobierno Corporativo
6. Asuntos Emergentes y Alcance
7. Servicios Diferentes al Aseguramiento
8. Próximas Juntas
9. Directriz Reglamentaria de la CE vs. Código del IESBA: la FEE Compara los Requerimientos de Independencia
10. El IESBA está Contratando
11. Manual IESBA 2013
12. Congreso Mundial de Contadores 2014 se Llevará a Cabo en Roma; Oportunidades de Patrocinio Disponibles

1. Respondiendo a un Acto Ilegal Sospechado

El IESBA consideró los comentarios de más de 70 replicantes al Borrador de Consulta (ED), Respondiendo a un Acto Ilegal Sospechado. Entre los temas abarcados, se incluyó: la divulgación de un acto ilegal sospechado a la autoridad adecuada; la divulgación al auditor externo, con la expectativa de divulgación a la autoridad adecuada; la prueba de información e intensificación del “interés público”; el requerimiento para confirmar o disipar la sospecha; los tipos de actos ilegales a ser revelados; y la interacción de la norma propuesta con las Normas Internacionales de Auditoría (NIAs).  

El IESBA continuará considerando los temas claves y las acciones futuras durante su junta de Junio de 2013.

2. Asociación de Personal Directivo (incluyendo Rotación de Socios) con un Cliente de Auditoría 

El IESBA recibió una actualización sobre el proyecto de revisión de las largas provisiones de asociación incluidas en la Sección 290 del Código de Ética para Contadores Profesionales (el Código) a fin de garantizar que continúan proporcionando una protección contra la familiaridad y las amenazas de auto-interés que surgen de la larga asociación con el cliente de auditoría. Entre otros asuntos, el IESBA abarcó el enfoque para la investigación de las provisiones sobre la rotación de socios en los territorios principales y el sondeo de las opiniones de las partes interesadas sobre las amenazas asociadas con la asociación.

3. Revisión de la Parte C del Código

El IESBA aprobó una propuesta para iniciar un proyecto de revisión de la Parte C del Código que considera a los Contadores Profesionales en Empresas (PAIB) a fin de garantizar que las provisiones de la Parte C del Código son sólidas y adecuadas. La Fase I del proyecto revisará las Secciones 300, 320, 330, y 340 del Código. Particularmente, esta fase se enfocará en la presión aplicada por los superiores y demás para dedicarse a actos ilegales y poco éticos, la responsabilidad de los PAIB en la producción de estados financieros que representen de manera fiel los aspectos económicos de las transacciones, y demás asuntos relacionados. La fase II del proyecto abarcará la Sección 350, la cual está relacionada con pagos fáciles y sobornos. El IESBA desarrollará más a fondo el proyecto en su junta de Junio de 2013.

4. Estructura del Código

El IESBA consideró términos de referencia y un informe de estatus inicial del grupo de trabajo creado para asesorar al Consejo sobre las maneras en que se puede mejorar la lectura, el entendimiento y el acceso al Código. Entre otros asuntos, el IESBA debatió sobre los objetivos, el alcance y los tiempos de la iniciativa, al igual que el enfoque frente al trabajo. El consejo acordó que era necesario reflexionar cuidadosamente sobre la distinción a hacer entre las opciones que se podrían considerar a corto plazo y aquellas que se podrían considerar a largo plazo y que permitirían una revisión más sólida de la estructura del Código. El consejo solicitó al grupo de trabajo explorar estas opciones y emprender la investigación para definir el camino a seguir.   

5. Definición de los Encargadosdel Gobierno Corporativo

El IESBA tomó en cuenta los comentarios recibidos sobre su Borrador de Consulta acerca de un cambio propuesto en relación con la definición del término “encargados del gobierno”. En principio, el IESBA acordó modificar la definición propuesta debido a los comentarios de los replicantes. El IESBA considerará la definición final para aprobación en su junta de Junio 2013, luego de analizarlo con su Grupo Consultivo Asesor (CAG) en la revisión de comentarios que se llevará a cabo en Abril 2013.

6. Asuntos Emergentes y Alcance

El IESBA acordó crear un Grupo de Trabajo sobre Asuntos Emergentes y Alcance con el fin de asesorar el consejo sobre asuntos emergentes y desarrollos internacionales de relevancia para el trabajo del IESBA y para la estrategia de alcance del consejo. El IESBA revisará borradores de términos de referencia para el Grupo de Trabajo en su junta de Junio 2013.

7. Servicios Diferentes al Aseguramiento

El IESBA recibió una breve actualización sobre el enfoque de la Fuerza de Trabajo frente a la recopilación de información para fines de definición del alcance del proyecto. El IESBA considerará la información recopilada y las propuestas de la Fuerza de Trabajo en cuanto al alcance del proyecto en la junta del IESBA en junio de 2013.

8. Próximas Juntas

Las juntas del IESBA y del CAG del IESBA son abiertas al público. El CAG del IESBA realizará su nueva junta en Nueva York, Estados Unidos el 10 de Abril de 2013. La próxima junta del IESBA se llevará a cabo en Nueva York, el 10-12 de junio, 2013.

Para mayor información e inscripción para participar como observador en la junta del IESBA o del CAG del IESBA, favor visitar las páginas Juntas del IESBA o Juntas del CAG del IESBA, respectivamente. 

9. Directriz Reglamentaria de Auditoría de la CE vs. el Código del IESBA: la FEE Compara los Requerimientos de Independencia

En un estudio emitido en Febrero 2013, la Fédération des Experts Comptables Européens (FEE) comparó las provisiones en los marcos de Estados Unidos sobre la independencia del auditor (Directriz Reglamentaria de Auditoría de 2006 y la Recomendación de 2002 sobre la Independencia Reglamentaria de Auditoría en los Estados Unidos) y las provisiones de independencia incluidas en el Código IESBA.

Entre otros asuntos, el estudio reveló que el Código es más sólido en relación con las auditorías de entidades de interés público. En particular, el Código incluye provisiones estrictas para los servicios diferentes a la auditoría y que son incompatibles con la provisión de servicios de auditoría. El estudio reveló igualmente que el Código abarca otros asuntos que podrían ser considerados e incluidos en una ley futura de auditoría en la UE.

10. El IESBA está Contratando

El IESBA busca actualmente un gerente técnico para su equipo de trabajo ubicado en Nueva York. Los candidatos calificados deben contar con experiencia a nivel de gerente o alto gerente en la práctica profesional, en un organismo contable profesional, una oficina de auditoría del sector público, o similar. Para una descripción completa del cargo, las competencias y la experiencia requeridas, referirse a la página Trabajando en la IFAC. Los candidatos calificados pueden enviar su hoja de vida a jobs@ifac.org.

11. Manual IESBA 2013

El IESBA está desarrollando el Manual 2013 del Código de Ética para Contadores Profesionales. Éste contendrá los pronunciamientos finales que abarcan los incumplimientos de las provisiones en el Código y los conflictos de interés, al igual que la definición revisada del término “equipo de auditoría.” El Manual 2013 será publicado en el segundo trimestre de 2013. Para acceder a la edición actual, referirse al Manual IESBA 2012.

12. Congreso Mundial de Contadores 2014 se Llevará a Cabo en Roma; Oportunidades de Patrocinio Disponibles  

El Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC) será anfitrión del siguiente Congreso Mundial de Contadores (WCOA) en Roma, Italia en el 2014. Titulado Visión 2020: Aprendiendo del Pasado, Creando el Futuro, el WCOA 2014 se realizará en Noviembre 10-13 en el  Auditorium Parco della Musica. Más de 4,000 profesionales del mundo entero se reunirán en este evento de la IFAC que se lleva a cabo cada cuatro años. El WCOA 2014 analizará el pasado y explorará la evolución de la profesión contable y mirará hacia el futuro a fin de presentar las innovaciones que moldearán el futuro de la profesión.

El WCOA ofrece igualmente una plataforma a fin que las organizaciones y firmas adapten sus proyectos y visiones a través de diferentes oportunidades de patrocinio. Para mayor información, contactar a info@wcoa2014rome.com o Dimarco@wcoa2014rome.com.

Thank you for subscribing to the eNews from the International Public Sector Accounting Standards Board (IPSASB). This edition provides a summary of decisions made at the IPSASB’s meeting held March 11-14, 2013, in Abu Dhabi. Please go to the IPSASB Meeting Page for the meeting highlights and relevant agenda items.

1. Conceptual Framework  ED 4, Presentation in General Purpose Financial Reports
2. The Preface to the Conceptual Framework
3. Financial Statement Discussion and Analysis
4. Reporting on the Long-Term Sustainability of an Entity’s Finances
5. Public Sector Combinations
6. First-Time Adoption of Accrual Basis IPSASs
7. Next Meeting
8. World Congress of Accountants 2014 to be Held in Rome; Sponsorship Opportunities Available

1.     Conceptual Framework ED 4, Presentation in General Purpose Financial Reports

The IPSASB approved the Conceptual Framework–Exposure Draft 4 (CF–ED4), Presentation in General Purpose Financial Reports, which describes presentation, display, and disclosure. It proposes an approach to presentation of decisions involving a two-level application of the concepts developed in chapters 1–4 of the Conceptual Framework.

In finalizing CF–ED4, the IPSASB confirmed:

• The description of key terminology, including presentation, display, and disclosure; and
• The decision-focused approach to presentation, involving decisions on information selection, location, and organization.

The IPSASB also confirmed application of both the qualitative characteristics and constraints on information included in general purpose financial reports (GPFRs) when making presentation decisions. The IPSASB also confirmed its decision not to include specific presentation objectives, relying on the direct application of the objectives of financial reporting identified in chapter 2 of the Framework.

The ED will have a four-month exposure period. The ED and the At-a-Glance document, which provides a summary of the ED, will be published shortly.

2.     The Preface to the Conceptual Framework

The IPSASB also discussed the approach to incorporation of the Preface into the Conceptual Framework. While it confirmed that the Preface should be included in the Framework, it decided to defer approval and publication until the Framework is being finalized. This will allow the linkages between the characteristics identified in the Preface and the concepts in the Framework chapters to be made more explicit.

The IPSASB reviewed the draft Preface presented by staff and gave directions for amendments to some of the sections, particularly those dealing with involuntary transfers and non-exchange transactions, and the longevity of the public sector.

3.     Financial Statement Discussion and Analysis

Consistent with a decision earlier in the meeting to issue non-authoritative guidance for pronouncements relating to general purpose financial reports (GPFRs), the IPSASB confirmed that the draft International Public Sector Accounting Standard (IPSAS), Financial Statement Discussion and Analysis, which has been developed from Exposure Draft 47, should be revised to become a Recommended Practice Guideline (RPG).

The IPSASB reviewed the current draft, acknowledging that specific wording may change due to the decision to change its status, and gave directions for amendments. A draft RPG with a Basis for Conclusions will be considered for approval at the June 2013 meeting.

4.     Reporting on the Long-Term Sustainability of an Entity’s Finances

The IPSASB reviewed a draft Recommended Practice Guideline (RPG) 1, Reporting on the Long-Term Sustainability of an Entity’s Finances, which has been developed from Exposure Draft 46 and provided directions for amendments. In particular, it directed staff to revise the section relating to the dimensions of long-term fiscal sustainability to directly refer to the dimensions of service, revenue, and debt and to explain that there are two aspects to each dimension: capacity and vulnerability. Capacity is the ability of the entity to influence or change the service, revenue, or debt dimensions, and vulnerability is the extent of the entity’s dependence on factors outside its control or influence. The draft RPG will be revised and presented at the June 2013 meeting with a view to approval.

5.     Public Sector Combinations

The IPSASB considered the responses received to Consultation Paper (CP), Public Sector Combinations. The CP was issued in June 2012 and received 26 responses.

The IPSASB agreed that the project should continue with the scope proposed in the CP, which includes guidance on (a) the de-recognition and recognition of assets for the transferor, (b) the definition of an operation, (c) disclosure requirements for combining entities relating to the going concern basis, (d) subsequent measurement requirements similar to that included in International Financial Reporting Standard (IFRS) 3, Business Combinations, and (e) distinguishing between asset acquisitions, entity and operation acquisitions, and amalgamations using relevant text from IFRS 3.

The IPSASB had an initial discussion about whether the approach used in the CP of distinguishing acquisitions and amalgamations, with a further distinction for public sector combinations not under common control and under common control, is appropriate. Staff was directed to outline the possible consequences of such distinctions for review at its June 2013 meeting. The IPSASB will also conduct a detailed analysis of the responses to the CP and preliminary views during that meeting.

6.     First-Time Adoption of Accrual Basis IPSASs

The IPSASB discussed an analysis of the transitional provisions related to IPSAS 23, Revenue from Non-Exchange Transactions (Taxes and Transfers), IPSAS 25, Employee Benefits, and IPSAS 32, Service Concession Arrangements: Grantor, and provided directions to staff on various aspects including categorization. The IPSASB agreed to adopt a transition period of three years as a general guideline, acknowledging that this could be changed at the standards level if determined appropriate.

At the June 2013 meeting, an analysis of the transitional provisions for the financial instruments standards will be considered. The IPSASB thanks Ernst & Young for providing staff support up to this point in the project. The South African Accounting Standards Board is now providing staff resources for the project and will be developing an exposure draft for review, with a view to approval in September 2013.

7.     Next Meeting

The next IPSASB meeting will be held in Toronto, Canada, on June 17–20, 2013. Members of the public may register to observe the meetings. Registration will close one week before the first day of the meeting.

8.  World Congress of Accountants 2014 to be Held in Rome; Sponsorship Opportunities Available

The next World Congress of Accountants (WCOA) will be hosted by the Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC) in Rome, Italy, in 2014. Themed 2020 Vision: Learning from the Past, Building the Future, the 2014 WCOA will be held November 10-13 at the Auditorium Parco della Musica. More than 4,000 professionals from all over the world will convene at this can’t-miss IFAC event, held every four years. WCOA 2014 will look back to explore the evolution of the accountancy profession and forward to showcase the innovations that will set the tone for the future.

The WCOA also affords an unparalleled opportunity for organizations and firms to share their projects and visions with the world by taking advantage of one of our carefully crafted sponsorship packages. There are numerous options so you’ll be able to select the one that best suits your organization’s unique strategy and goals. For more information, please contact info@wcoa2014rome.com or Dimarco@wcoa2014rome.com. 

Welcome to IFAC's Small and Medium Practices (SMP) Committee eNews.

In This Issue:

SUSTAINABILITY 

1. Sustainability: Challenges and Opportunities for SMPs and SMEs
2. Updated Good Practice Checklist Features Environmental Management

STANDARDS AND REGULATION

3. Closing Soon: IAASB Consults on Audit Quality Framework
4. SMP Committee Contributes to Standard Setters’ Key Projects and Strategic Planning
5. IFRS for SMEs Update

RESOURCES AND EVENTS

6. Registration Closing Soon: 2013 IFAC SMP Forum
7. World Congress of Accountants 2014 to be Held in Rome; Sponsorship Opportunities Available

SUSTAINABILITY

1. Sustainability: Challenges and Opportunities for SMPs and SMEs

Small- and medium-sized entities (SMEs) might think that sustainability is only relevant to large companies. Maybe they think they cannot afford to be sustainable, that measuring and managing environmental performance amounts to a costly and unnecessary burden. Moreover their accountants, both those employed by the business (accountants in business) and those providing services to the business (accountants in practice), will tell you it is a hard sell getting SMEs to embrace sustainability. However, SMEs that integrate sustainability into their core business strategy can benefit from lower costs, reduced risk, and new opportunities. And their accountants, typically operating in SMPs, can play a key role in their journey.

SMEs and the Benefits of Sustainability

SMEs are crucially important to the health and stability of the global economy: they account for over 95% of all businesses and for the majority of private sector gross domestic product (GDP), wealth and employment creation, and social and environmental impacts. Meanwhile, there is immense pressure on the natural environment and a recognition that finite resources are fast depleting. Today, SMEs are increasingly being faced with pressure to measure and manage their impact on the environment. They are an integral part of the supply chain where there is a growing demand for sustainability management both from customers and suppliers, especially for those SMEs seeking to secure contracts with governments or larger companies. SMEs also need to ensure they have access to the resources they need to be able to continue offer their products and services in the future.

That said, many SMEs may still feel they can delay addressing sustainability issues. Our global SMP poll indicates there are other more urgent issues preoccupying businesses, including economic concerns and keeping up with new standards, prompting sustainability to slide down their list of priorities. This may explain why few SMPs are presently offering sustainability services. But in the longer term, the sustainability issue is here to stay.

The good news is that there is growing evidence that sustainability initiatives, such as those to reduce an SME’s carbon footprint, can also help improve their bottom line.

2. Updated Good Practice Checklist Features Environmental Management

The second edition of the Good Practice Checklist for Small Business is now available. This multi-part checklist features a new standalone section on environmental management. Other sections cover financial and strategic management tasks and regulatory requirements, among others. The checklist is meant primarily for SMPs as a marketing or diagnostic tool to help them determine the advice a small business client may need, and also to help them in managing their own businesses. Six translations of the checklist have either been completed or are in progress.

STANDARDS AND REGULATION

3. Closing Soon: IAASB Audit Quality Framework Consultation

The comment period for the International Auditing and Assurance Standards Board (IAASB)’s Consultation Paper, A Framework for Audit Quality, will close on May 15, 2013. Through the proposed framework, the IAASB aims to raise awareness of the key elements of audit quality, encourage stakeholders to explore ways to improve audit quality, and facilitate greater dialogue on the topic. The SMP Committee plans to submit a comment letter and encourages individual SMPs to comment as well. 

4. SMP Committee Contributes to Standard Setters’ Key Projects and Strategic Planning

IAASB

The SMP Committee provided comments to the International Auditing and Assurance Standards Board (IAASB) on its auditor reporting project prior to their February meeting. See the IAASB February Meeting Page for the agenda papers, highlights, and podcast. In advance of the IAASB April Meeting, the committee will provide further comments on this project as well as the IAASB’s work addressing disclosures, International Standard on Auditing (ISA) implementation monitoring, and International Standard on Assurance Engagements (ISAE) 3000.

The IAASB is seeking comments, insights, and views from all stakeholders to help shape its future direction for 2015 and beyond via the Strategic Review Survey. Responses to the survey will inform the development of a formal Consultation Paper to be issued in late 3013. The SMP Committee plans to submit a response and encourages individual SMPs to comment as well.

IESBA

In early March, the committee responded to the International Ethics Standards Board for Accountants (IESBA)’s online survey, which was conducted as part of the IESBA’s strategic review to develop its strategy and work plan for the period 2014-2016. The survey has now closed and the IESBA will consider the survey responses in upcoming meetings.

5. IFRS for SMEs Update

In 2012, the International Accounting Standards Board (IASB) issued a Request for Information (RFI) to begin its comprehensive review of the International Financial Reporting Standard for Small- and Medium-Sized Entities (IFRS for SMEs). The objective of the RFI was to publicly consult on whether amendments are required to the standard. Last month, the IASB began to discuss issues relating to the scope of the standard, including whether or not the standard should be used by publicly accountable entities. See the IASB’s March Meeting Page to access the agenda papers and audio recording. See a summary of decisions in the March IASB Update.

EVENTS

6. Registration Closing Soon: 2013 IFAC SMP Forum

The 2013 IFAC SMP Forum will be held in Kampala, Uganda, on June 5, 2013, and jointly hosted with the Institute of Certified Public Accountants of Uganda (ICPAU) and the Pan African Federation of Accountants (PAFA). Each IFAC member organization may send up to ten delegates, who should be those responsible for SMP/small- and medium-sized entity (SME) affairs at their organization. Registration forms have been sent to IFAC member organizations. If you are an individual member of an IFAC member organization and wish to attend, please register your interest with your organization as soon as possible, as the deadline for registration is April 30, 2013. More information will be posted as it becomes available.

7. World Congress of Accountants 2014 to be Held in Rome; Sponsorship Opportunities Available

The next World Congress of Accountants (WCOA) will be hosted by the Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC) in Rome, Italy, in 2014. Themed 2020 Vision: Learning from the Past, Building the Future, the 2014 WCOA will be held November 10-13 at the Auditorium Parco della Musica. More than 4,000 professionals from all over the world will convene at this can’t-miss IFAC event, held every four years. WCOA 2014 will look back to explore the evolution of the accountancy profession and forward to showcase the innovations that will set the tone for the future.

The WCOA also affords an unparalleled opportunity for organizations and firms to share their projects and visions with the world by taking advantage of one of our carefully crafted sponsorship packages. There are numerous options so you’ll be able to select the one that best suits your organization’s unique strategy and goals.

Thank you for signing up to receive eNews from the International Ethics Standards Board for Accountants (IESBA). This edition of IESBA eNews provides a summary of decisions made at the IESBA’s meeting held March 11-13, 2013, in New York, USA. See the Meeting Page for the meeting highlights, including a podcast summary, and agenda papers.

IN THIS ISSUE:

1. Responding to a Suspected Illegal Act
2. Long Association of Senior Personnel (Including Partner Rotation) with an Audit Client
3. Review of Part C of the Code
4. Structure of the Code
5. Definition of Those Charged with Governance
6. Emerging Issues and Outreach
7. Non-Assurance Services
8. Next Meetings
9. EC Statutory Audit Directive vs. IESBA Code: FEE Compares Independence Requirements
10. IESBA is Hiring
11. 2013 IESBA Handbook
12. World Congress of Accountants 2014 to be Held in Rome; Sponsorship Opportunities Available

1. Responding to a Suspected Illegal Act

The IESBA considered the significant comments received from over 70 respondents on its Exposure Draft (ED), Responding to a Suspected Illegal Act. Topics discussed included: disclosure of a suspected illegal act to an appropriate authority; disclosure to the external auditor; right with an expectation to disclose to an appropriate authority; the “public interest” reporting test and escalation threshold; the requirement to confirm or dispel the suspicion; types of suspected illegal acts to be disclosed; and the interaction of the proposed standard with the International Standards on Auditing (ISAs).

The IESBA will continue its consideration of key issues and future actions at its June 2013 meeting.

2. Long Association of Senior Personnel (Including Partner Rotation) with an Audit Client

The IESBA received an update on the project to review the long association provisions in Section 290 of the Code of Ethics for Professional Accountants (the Code) to ensure that they continue to provide robust and appropriate safeguards against the familiarity and self-interest threats arising from long association with an audit client. Among other matters, the IESBA discussed the approach to research into the partner rotation provisions in major jurisdictions and canvassing the views of stakeholders on the threats associated with long association.

3. Review of Part C of the Code
The IESBA approved a proposal to commence a project to review Part C of the Code addressing professional accountants in business (PAIBs) to ensure that the provisions in that part of the Code are robust and remain appropriate. Phase I of the project will review Sections 300, 320, 330, and 340 of the Code. This phase will, in particular, address pressure by superiors and others to engage in unethical or illegal acts, the responsibility of PAIBs to produce financial reports that are faithful representations of the economics of transactions, and associated matters. Phase II of the project will address Section 350, which is related to facilitation payments and bribes. The IESBA will discuss the project further at its June 2013 meeting.

4. Structure of the Code

The IESBA considered draft terms of reference for, and an initial status report from, the working group formed to advise the Board on ways to improve the readability, understandability, and accessibility of the Code. Among other matters, the IESBA discussed the objectives, scope, and timing of the initiative, as well as the approach to the work. The board agreed that careful thought should be given to distinguishing clearly between options that could be considered on a short term basis and longer term options that could address a more fundamental review of the structure of the Code. The board asked the working group to explore these options and to undertake the research to support the way forward.

5. Definition of Those Charged with Governance

The IESBA considered significant comments received on its ED of a proposed change to the definition of the term “those charged with governance.” The IESBA agreed in principle to amend the proposed definition in the light of respondents’ significant comments. The IESBA will consider the final definition for approval at its June 2013 meeting after consulting with its Consultative Advisory Group (CAG) on the meaningful ED comments in April 2013.

6. Emerging Issues and Outreach

The IESBA agreed to the establishment of an Emerging Issues and Outreach Working Group to advise the board on emerging issues and international developments of relevance to the IESBA’s work, and on the board’s strategy for outreach. The IESBA will consider draft terms of reference for the Working Group at its June 2013 meeting.

7. Non-Assurance Services

The IESBA received a brief update on the Task Force’s approach to information gathering for purposes of scoping out the project. The IESBA will consider the information gathered and the Task Force’s proposals regarding the scope of the project at the June 2013 IESBA meeting.

8. Next Meetings

Meetings of the IESBA and the IESBA CAG are open to the public. The IESBA CAG will next meet in New York, USA on April 10, 2013. The next IESBA meeting will be held in New York, USA, on June 10–12, 2013.

For more information and to register to attend an IESBA or IESBA CAG meeting as an observer, visit IESBA Meetings  or IESBA CAG Meetings respectively.

9. EC Statutory Audit Directive vs. IESBA Code: FEE Compares Independence Requirements

In a study released in February 2013, the Fédération des Experts Comptables Européens (FEE) compared provisions in the EU frameworks on auditor independence (the 2006 Statutory Audit Directive and the 2002 Recommendation on Statutory Auditor’s Independence in the EU) and the Independence provisions of the IESBA Code.

Among other matters, the study found that the Code is more robust with respect to audits of public interest entities.  In particular, the Code includes strict provisions for those non-audit services that are incompatible with the provision of audit services. The study also found that the Code tackles other matters that may be considered for inclusion in future EU audit legislation.

10. IESBA is Hiring

The IESBA is searching for a technical manager to join its staff team based in New York. Qualified candidates should have experience at the manager or senior manager level in professional practice, a professional accounting body, the office of a public sector auditor, or similar. For a complete job description and required skills and experience, see Working at IFAC. Qualified candidates should send a resume to jobs@ifac.org. 

11. 2013 IESBA Handbook

The IESBA is developing the 2013 Handbook of the Code of Ethics for Professional Accountants. It will contain the final pronouncements addressing breaches of provisions in the Code and conflicts of interest, and the revised definition of “engagement team.” The 2013 Handbook is expected to be released in the second quarter of 2013. For the current edition, see 2012 IESBA Handbook.   

12. World Congress of Accountants 2014 to be Held in Rome; Sponsorship Opportunities Available

The next World Congress of Accountants (WCOA) will be hosted by the Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC) in Rome, Italy in 2014. Themed 2020 Vision: Learning from the Past, Building the Future, the 2014 WCOA will be held November 10-13 at the Auditorium Parco della Musica. More than 4,000 professionals from all over the world will convene at this IFAC event, which is held every four years. WCOA 2014 will look back to explore the evolution of the accountancy profession and forward to showcase the innovations that will shape the future of the profession.

The WCOA also provides a global platform for organizations and firms to share their projects and visions via various sponsorship opportunities. For more information, please contact info@wcoa2014rome.com or Dimarco@wcoa2014rome.com.

Welcome to IFAC’s International Auditing and Assurance Standards Board (IAASB) eNews.

In This Issue:

1. IAASB Addresses Use of Direct Assistance: Releases ISA 610 (Revised 2013), Using the Work of Internal Auditors
2. Open for Comment: A Framework for Audit Quality
3. IAASB Invites Input on Strategic Review
4. Highlights—February 2013 IAASB Meeting
5. IAASB Presents at NYSSA Event
6. The IAASB is Hiring
7. Other Relevant Standard-Setting Board and IFAC Initiatives
8. Share IAASB eNews with Your Colleagues
9. World Congress of Accountants 2014 to be Held in Rome; Sponsorship Opportunities Available

1.     IAASB Addresses Use of Direct Assistance; Releases ISA 610 (Revised 2013), Using the Work of Internal Auditors

In follow-up to its 2012 release of stronger standards dealing with the external auditor’s use of an internal audit function’s work, the IAASB has released International Standard on Auditing (ISA) 610 (Revised 2013), Using the Work of Internal Auditors. The revised ISA now includes requirements and guidance for external auditors when determining whether they can use direct assistance from internal auditors and, if so, in which areas, and to what extent. The material addressing direct assistance does not apply if the external auditor is prohibited by law or regulation from obtaining direct assistance. This new material is effective for audits of financial statements for periods ending on or after December 15, 2014.

2.     Open for Comment: A Framework for Audit Quality

The IAASB released for public comment a consultation paper addressing audit quality. A Framework for Audit Quality seeks input from stakeholders internationally who have an interest in continually enhancing audit quality, including regulators, audit committees, investors, and audit firms. Through the proposed framework, the IAASB aims to raise awareness of the key elements of audit quality, encourage stakeholders to explore ways to improve audit quality, and facilitate greater dialogue between key stakeholders on the topic. The IAASB is seeking responses to several questions listed in the consultation paper, in particular, whether the framework is clear, comprehensive, and useful.

Comments are requested by May 15, 2013.

3.     IAASB Invites Input on Strategic Review

The IAASB has released an online survey seeking public comment, insights, and views from all stakeholders to help shape its future direction for 2015 and beyond. The survey asks for input on emerging developments and trends that are likely to be important in the public interest, as well as specific areas of focus for development of standards and related guidance. It also asks for input on the appropriate balance between setting new and revised standards and facilitating their adoption and effective implementation. Views are also sought on the appropriateness of the IAASB extending its future strategy period to five years (2015–2019). Responses to the survey will inform the development of a formal consultation paper on the strategy and work program commencing 2015, to be issued in late 2013.

All stakeholders are encouraged to complete the survey. Comments are requested by May 7, 2013.

4.     Highlights—February 2013 IAASB Meeting

Auditor Reporting

The IAASB deliberated issues arising from stakeholder responses to its June 2012 Invitation to Comment (ITC), Improving the Auditor’s Report. Key discussion points included the need for a new ISA, tentatively ISA 701. ISA 701 will include requirements and guidance to assist auditors in determining what additional information should be included in a new section of the auditor’s report under the heading Key Audit Matters. The IAASB’s view is that the auditor’s judgment of what to report externally is derived from what had been communicated to those charged with governance. The IAASB further considered how proposed ISA 701 should best reflect this view and discussed the factors to guide the auditor’s decision-making process in relation to external reporting.

ISA Implementation Monitoring

The IAASB received an overview of the preliminary findings from Phase 2 of its ISA Implementation Monitoring project. A draft report of findings will be presented to the IAASB at its April 2013 meeting.

Assurance Engagements Other than Audits or Reviews of Historical Financial Information

The IAASB received a presentation providing further background on the nature and scope of direct engagements, and discussed how the features of direct engagements relate to concepts in proposed International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information.

For more detailed information, please visit the IAASB’s meetings page. The next IAASB meeting will be held in New York, New York, on April 15–19, 2013.

5.     IAASB Presents at NYSSA Event

Dan Montgomery, IAASB deputy chair, joined a January 2013 New York Society of Security Analysts (NYSSA) panel discussion, where he presented The Auditor’s Role Relating to Information Communicated to Financial Statement Users. Mr. Montgomery discussed the IAASB’s proposed changes to the auditor’s report, disclosures within and outside financial statements, and relevant information for users of financial statements.

6.     The IAASB is Hiring

The IAASB has open positions within its technical staff team. Interested individuals are invited to submit their resumes to: jobs@ifac.org. Further information about the positions is available on the IAASB home page.

7.     Other Relevant Standard Setting Board and IFAC Initiatives

Initiatives of IFAC committees and other independent standard-setting boards supported by IFAC may be of interest to those who follow the work of the IAASB, including the following:

• IESBA Strengthens Key Sections of Code of Ethics for Professional Accountants
• New Publication from IFAC Helps Professional Accountants Implement Effective Business Reporting Processes in Organizations
• IAESB Issues Revised IES 5, Initial Professional Development–Practical Experience
• IFAC Welcomes G-20 Focus on Public Sector Financial Management, EC Report on Accrual-based Accounting
• Engagement Quality Control Reviews: Practical Considerations

 8.     Share IAASB eNews with Your Colleagues

The IAASB issues regular eNews updates to keep you apprised of the board's activities and recent publications. Please forward this eNews to any interested colleagues and let them know they can register and subscribe to this and other eNews bulletins on the IFAC website.

9. World Congress of Accountants 2014 to be Held in Rome; Sponsorship Opportunities Available

The next World Congress of Accountants (WCOA) will be hosted by the Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC) in Rome, Italy in 2014. Themed 2020 Vision: Learning from the Past, Building the Future, the 2014 WCOA will be held November 10-13 at the Auditorium Parco della Musica. More than 4,000 professionals from all over the world will convene at this IFAC event, which is held every four years. WCOA 2014 will look back to explore the evolution of the accountancy profession and forward to showcase the innovations that will shape the future of the profession.

The WCOA also provides a global platform for organizations and firms to share their projects and visions via various sponsorship opportunities. For more information, please contact info@wcoa2014rome.com or Dimarco@wcoa2014rome.com.

In This Issue:

1. SMP Quick Poll—December 2012 Results and Year-End Report

STANDARDS AND REGULATION
2. IAASB Consults on Audit Quality Framework
3. Boards Seek Input on Strategy Development
4. Input to IESBA: Responding to a Suspected Illegal Act
5. IFRS for SMEs Update

RESOURCES AND REPORTS
6. Engagement Quality Control Reviews: Practical Considerations
7. Third Edition of Practice Management Guide Now Available
8. Business Reporting Processes Guidance
9. New Translations of SMP Guides

MEETINGS AND EVENTS
10. Upcoming IFAC SMP Forum
11. Next Committee Meeting and New Members
12. World Congress of Accountants 2014 to be Held in Rome; Sponsorship Opportunities

1. SMP Quick Poll—December 2012 Results and Year-End Report

The Nov.-Dec. 2012 IFAC SMP Quick Poll showed that the smallest accounting practices and their clients remain cautiously optimistic, despite concerns over continuing economic uncertainty and, in some cases, overly burdensome regulations and standards.

After keeping up with new regulations and standards, three issues related to the health of the economy—attracting and retaining clients, pressure to lower fees, and rising costs—topped the list of challenges faced by SMPs. Similarly, respondents indicated that their small- and medium-sized entity (SME) clients are most challenged by regulations, followed by economic uncertainty. Respondents generally expect little change in business performance in the coming year; however, slightly more SMPs (5 points more) indicated they expect business to improve in the coming year compared to those who said the same at the end of 2011. They expect this growth primarily to be driven by revenue from new clients.

The year-end 2012 poll was conducted in 17 languages from November 21 to December 31 and received 3,767 responses. IFAC wishes to thank the many member and regional organizations that helped with translation and distribution of the poll. See the full report, which includes notable variations by region and size of practice in addition to selected trend data based on previous polls, in the SMP Committee area of the IFAC site: www.ifac.org/SMP. Also, listen to SMP Committee Chair Giancarlo Attolini’s podcast interview with Accountancy Ireland on key highlights from the poll.

STANDARDS AND REGULATION

2. IAASB Consults on Audit Quality Framework

The International Auditing and Assurance Standards Board (IAASB) has released for public comment a Consultation Paper, A Framework for Audit Quality, seeking input from all stakeholders. Through the proposed framework, the IAASB aims to raise awareness of the key elements of audit quality, encourage stakeholders to explore ways to improve audit quality, and facilitate greater dialogue on the topic. The SMP Committee will submit a comment letter and encourages individual SMPs to comment as well. The comment deadline is May 15, 2013. See also the At-a-Glance Summary.

3. Boards Seek Input on Strategy Development

The International Ethics Standards Board for Accountants (IESBA) is conducting a strategic review to develop a new strategy and work plan for 2014-2016. It is seeking the views of interested parties on key issues to address and their relative priorities as part of this strategy and work plan.

To contribute your views, participate at IESBA 2014-2016 Strategic Review Survey. The survey will close on March 15, 2013. Individual responses will not be made public.

At the International Auditing and Assurance Standards Board (IAASB) meeting in Brussels, the board discussed, among other projects, the development of its future strategy, including the stakeholder survey that will form part of its strategy development. See the relevant agenda paper and IAASB Meeting Page for more information.

4. Input to IESBA: Responding to a Suspected Illegal Act

The SMP Committee submitted a comment letter to the International Ethics Standards Board for Accountants (IESBA) on its Exposure Draft (ED), Responding to a Suspected Illegal Act, which closed on December 15, 2012. The IESBA will consider the significant comments from the nearly 70 responses received on the ED at its March 2013 meeting.

5. IFRS for SMEs Update

International Accounting Standards Board (IASB) member Darrel Scott has been appointed chairman of the SME Implementation Group (SMEIG), replacing Paul Pacter, whose term at the IASB ended last year. The SMEIG supports the international adoption of the IFRS for Small and Medium-sized Entities (IFRS for SMEs) and monitors its implementation. The SMEIG met on Feb 4–5 in London. See the Meeting Page to learn more.

RESOURCES AND REPORTS

6. Engagement Quality Control Reviews: Practical Considerations

An Engagement Quality Control Review (EQCR) is an important component of an audit firm’s overall audit quality process. The staff of the Transnational Auditors Committee (the executive arm of the Forum of Firms) recently released an Information Paper, Engagement Quality Control Review: Practical Considerations, that illustrates the more judgmental elements relating to an EQCR to help practitioners evaluate and enhance their own processes for conducting such reviews. The paper states, “SMPs may very well apply a less comprehensive EQCR that covers all the requirements of the ISAs and ISQC 1.” SMPs are encouraged to refer to the Guide to Quality Control for Small- and Medium-Sized Practices for more guidance.

7. Third Edition of Practice Management Guide Now Available

The third edition of its Guide to Practice Management for Small- and Medium-Sized Practices (PM Guide) is now available. The comprehensive guide covers a broad range of topics to help practitioners effectively market, manage, and grow their accounting practices. The new edition of the guide features improvements in content and functionality, including new and updated material on value pricing, knowledge networks, social media marketing, building a business advisory practice, and cloud computing. The tables of contents of each of the eight standalone modules are now cross-linked to improve navigation, and the lists of further readings at the end of each module have been updated. See also the Companion Manual for ways that professional accountancy organizations can use the guide to benefit their members, and links to additional practice management resources from IFAC, its member organizations, and other sources.

8. Business Reporting Processes Guidance

The IFAC Professional Accountants in Business (PAIB) Committee has developed new International Good Practice Guidance to help professional accountants in business work with their organizations to enhance business reporting processes. Principles for Effective Business Reporting Processes discusses 11 key principles for evaluating and improving business reporting processes, which are complemented by practical guidance outlining the critical arrangements that need to be in place for effective business reporting. The guidance is designed for organizations of all sizes, structures, and sectors, as all organizations need to produce high-quality reports.

9. New Translations of SMP Guides

New translations of the SMP Committee’s three comprehensive guides have recently been released. To access these, filter by language in SMP Publications & Resources: 

• Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities in Arabic, Dutch, Latvian, Slovak, and Spanish
• Guide to Quality Control for Small- and Medium-Sized Practices in Italian
• Guide to Practice Management for Small- and Medium-Sized Practices in Italian and Spanish

MEETINGS AND EVENTS

10. Upcoming IFAC SMP Forum

The 2013 IFAC Small and Medium Practices (SMP) Forum will be held in Kampala, Uganda, on June 5, 2013, and jointly hosted with the Institute of Certified Public Accountants of Uganda (ICPAU) and the Pan African Federation of Accountants (PAFA). Each IFAC member organization may send up to ten delegates, who should be those responsible for SMP/small- and medium-sized entity (SME) affairs at their organization. Registration forms will be sent to IFAC member organizations closer to the event. If you are an individual member of an IFAC member organization and wish to attend, please register your interest with your organization. More information will be posted at www.ifac.org/2013SMPForum as it becomes available.

11. Next Committee Meeting and New Members
The SMP Committee will next meet February 18–19 in New York. The committee welcomes new members Dawn McGeachy-Colby, Katharine Bagshaw, and Subodh Agrawal, and technical advisors Eddy Wong, Makokha Wanjala, Ken McManus, and Gail McEvoy.

See bios for all SMP Committee members on the committee’s website: www.ifac.org/SMP.   

12. World Congress of Accountants 2014 to be Held in Rome; Sponsorship Opportunities

The next World Congress of Accountants (WCOA) will be hosted by the Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC) in Rome, Italy in 2014. Themed 2020 Vision: Learning from the Past, Building the Future, the 2014 WCOA will be held November 10-13 at the Auditorium Parco della Musica. More than 4,000 professionals from all over the world will convene at this can’t-miss IFAC event, held every four years. WCOA 2014 will look back to explore the evolution of the accountancy profession and forward to showcase innovations that will shape the future of the profession. 

 The WCOA also affords an unparalleled opportunity for organizations and firms to share their projects and visions with the world by taking advantage of one of our carefully crafted sponsorship packages. There are numerous options so you’ll be able to select the one that best suits your organization’s unique strategy and goals. For more information, please contact info@wcoa2014rome.com or Dimarco@wcoa2014rome.com. 

Welcome to IFAC's Translations and Permissions eNews.

In This Issue:

1. Ibero-American Cooperation Framework for Sustainable Spanish Translations Established
2. Update of Policy Statements
3. Updated Translations and Permissions Reference Materials Available
4. Event Scheduled Regarding Adoption and Implementation of International Standards in the Former Soviet Republics in Europe and Central Asia
5. Newly Available Translations: September 2012–December 2012

1. Ibero-American Cooperation Framework for Sustainable Spanish Translations Established

In October 2012, IFAC and its member bodies Instituto de Censores Jurados de Cuentas de España, Federación Argentina de Consejos Profesionales de Ciencias Económicas, and Instituto Mexicano de Contadores Públicos formally agreed to establish an Ibero-American cooperation framework to achieve longer-term, sustainable processes for a single, Spanish translation of international standards and other IFAC publications.

The resulting landmark Memorandum of Understanding was commemorated with a formal signing ceremony that included the Interamerican Accounting Association, the IFAC recognized regional organization for Latin America and the Caribbean. The newly created Executive Committee of the Ibero-American Cooperation Framework will have its inaugural meeting in early February 2013 to plan the way forward.

For more information on Spanish-language or other translations, please visit the IFAC Translations Database. 

2. Update of Policy Statements

While IFAC greatly appreciates the significant contributions made by many of its stakeholders in the adoption and implementation of international standards, it also must adapt to the increased cost of high-quality international standard setting. In December 2012, the IFAC Board introduced an annual license fee, or waiver fee depending on the circumstances, for use of IFAC copyrighted materials. Such fees contribute to funding the continued activities and mission of IFAC and the independent standard-setting boards it supports.

The introduction of the fee structure is the only change of substance to the policy statements. The fee structure is outlined in Policy for Translating and Reproducing Standards Published by the International Federation of Accountants, and Policy for Reproducing, or Translating and Reproducing, Publications of the International Federation of Accountants.

3. Updated Translations and Permissions Reference Materials Available

4. Event Scheduled Regarding Adoption and Implementation of International Standards in the Former Soviet Republics in Europe and Central Asia

IFAC, the International Auditing and Assurance Standards Board (IAASB), and the International Accounting Standards Board (IASB) will be hosting an invitation-only event in London, May 15-16, 2013, focused on developments in International Standards on Auditing and International Financial Reporting Standards, with discussion of their adoption and implementation in the former Soviet Republics in Europe and Central Asia. Translations, including Russian and other languages, of IAASB and IASB pronouncements will be a significant topic of discussion.

5. Newly Available Translations: September 2012–January 2013

• Albanian—New IFAC Publication Provides Support for Professional Accountants Improving Internal Control (2012)
• Arabic—Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities, Third Edition (2011)
• Azeri—Handbook of International Public Sector Accounting Pronouncements (2011)
• Danish—International Standard on Assurance Engagements (ISAE) 3420, Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus (2011), International Standard on Related Services (ISRS) 4410 (Revised), Compilation Engagements (2012)
• Dutch—Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities, Second Edition (2010), International Auditing Practice Note (IAPN) 1000, Special Considerations in Auditing Financial Instruments (2011)
• Finnish—Handbook of the Code of Ethics for Professional Accountants (2012), Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements (2012)
• French—International Framework for Assurance Engagements (2012)
• German—International Framework for Assurance Engagements (2012), Handbook of International Public Sector Accounting Pronouncements (2011)
• Hungarian—Integrating Governance throughout an Organization Helps Achieve Sustainable Success (2012)
• Italian—How to Cope with Pressure to Lower Fees (2012), SMP Quality Control Guide Orientation Slides (2012), Guide to Quality Control for Small- and Medium-Sized Practices, Third Edition (2011), Guide to Practice Management for Small- and Medium-Sized Practices, Second Edition (2011)
• Kazakh—Handbook of International Public Sector Accounting Pronouncements (2011)
• Latvian—Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities, Third Edition (2011), Guide to Quality Control for Small- and Medium-Sized Practices (2011)
• Romanian—New IFAC Publication Provides Support for Professional Accountants Improving Internal Control (2012), How to Cope with Pressure to Lower Fees (2012), Competent and Versatile: How Professional Accountants in Business Drive Sustainable Success (2013), International Good Practice Guidance: Principles for Effective Business Reporting Processes (2013)
• Russian—Handbook of International Quality Control, Auditing, Review, Other Assurance and Related Services Pronouncements - Part I (2010), Handbook of International Public Sector Accounting (2011)
• Slovak—Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities, Third Edition (2011)
• Slovenian—Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements (2010), International Auditing Practice Note (IAPN) 1000, Special Considerations in Auditing Financial Instruments (2011), International Standard on Assurance Engagements (ISAE) 3420, Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus (2011)
• Spanish—International Public Sector Accounting Standards (IPSAS) 32 and Improvements to IPSASs (2011), IAASB Strategy and Work Program, 2012–2014 (2012), Feedback Statement: The Evolving Nature of Financial Reporting: Disclosure and Its Audit Implications (2012), Helping Small- and Medium-Sized Practices Meet the Challenges and Seize the Opportunities of Tomorrow” (2012), Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities (2010), Guide to Practice Management for Small- and Medium-Sized Practices (2011)
• Swedish—Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements (2012)
• Thai— Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements (2010), International Standards on Auditing Modules (2009/2010)
• Turkish—IFAC SMP Quick Poll: May-June 2012 (2012)

Please Check IFAC’s Translations Database Regularly for Updates

The list of new translations of IFAC publications by third parties is continuously updated; please visit the Translations Database  for the latest information available.