IFAC turns 30

The International Federation of Accountants celebrates its 30th anniversary in the midst of substantial global change. Along with its member bodies, IFAC is adapting to effectively manage that change

In late 2007, CMA Canada and other professional accountancy organizations worldwide will recognize the 30th anniversary of the founding of the International Federation of Accountants (IFAC), the global organization for the accountancy profession, which represents 155 members and associates in nearly 120 countries. The culminating event of this year’s anniversary celebrations will be World Accountancy Week, to be held December 2-8, 2007.

“As a member of IFAC since 1977, CMA Canada is pleased to celebrate the 30th anniversary of this global federation,” states Steve Vieweg, CMA, FCMA, President and CEO of CMA Canada. “This year, we are recognizing the accountancy profession’s role in supporting economic growth and development both in Canada and worldwide. The accounting  profession is one that acts with integrity and is committed to supporting financial responsibility, transparency and accountability at all levels of society — from individuals, to business entities, to governments.”

During World Accountancy Week, IFAC will announce the results of a Global Leadership Survey on issues facing the accountancy profession which, in turn, affect economic growth and development in Canada. IFAC will also release a brief history of the organization, which will document the role of member bodies such as CMA Canada in protecting the public interest and in promoting high quality practice by more than 2.5 million professional accountants worldwide, and including the over 38,000 members of CMA Canada.

A strong value proposition

In the 30 years since IFAC’s founding, the international profession has grown tremendously — not only in size, but also in areas of expertise as businesses, governments, developing nations, international organizations, and others have called on members of the profession to provide an expanding range of services.

“The value proposition of being a member of IFAC has steadily increased over the years,” says Vieweg. “While always a valuable organization, the pressures of globalization have created an environment in which the Federation can play a key role in standard setting and support for countries worldwide that are trying to adapt to rapid changes in international accounting practices.

“CMA Canada has been involved in initiatives such as the development of the Professional Accountants in Business Committee, International Financial Reporting Standards (IFRS) for small and medium-sized businesses and the International Public Sector Accounting Standards Board. Also, through the development of IFACnet.org, CMA Canada’s member educational materials have become a valuable research tool for developing nations worldwide. This knowledge sharing is valuable for everyone involved and will only make international ties stronger in the future. There are a number of members who have played a pivotal role in IFAC and its direction. On behalf of all CMAs, I express my deepest thanks to the CMA members who have played an important role over the years; Mr. Kenneth Biggs, CMA, FCMA, Mr. Ray Darke, CMA, FCMA, Mr. Bill Langdon, CMA, FCMA and the CMA Canada Board Chairs who contributed to IFAC during their terms, have all provided tremendous support in advancing the IFAC agenda.”

Proposals for Reform

Founded in 1977, IFAC is dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. 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.

 “The role of IFAC promises to be even more significant in the future, with the adoption of IFRS in Canada and elsewhere,” notes Vieweg. “IFAC’s role in the regulation of the profession has also been greatly expanded and formalized through the IFAC Proposals for Reform, which created significant changes in how standards for the profession will be set in years to come.”

The reforms mentioned above were developed with the input of regulators and other international organizations, including the International Organization of Securities Commissions, the Financial Stability Forum, the Basel Committee on Banking Supervision, the International Association of Insurance Supervisors, and the World Bank. Unanimously approved by the IFAC Council in November 2003, they laid a framework for important regulatory and oversight mechanisms that are now central to IFAC’s activities and represented some of the most significant changes in IFAC’s history. These included the creation of:

• IFAC Regulatory Liaison Group, which works with the Monitoring Group of regulators;
• IFAC Member Body Compliance Program, which requires IFAC members and associates to demonstrate their efforts to promote adoption of international standards as well as establishing quality assurance and investigation and discipline programs. The Compliance Advisory Panel oversees the implementation and operation of the Compliance Program; and
• Consultative Advisory Groups for each of IFAC’s standard-setting boards to provide public interest input to their respective board from users of its standards.

In addition, as a direct result of the reforms, in February 2005 international regulators and organizations working with IFAC created the Public Interest Oversight Board (PIOB) to oversee IFAC’s standard setting in the areas of auditing and assurance, ethics and education, as well as the IFAC Member Body Compliance Program. More information about the PIOB is available at http://www.ifac.org/About/PIOB.php.

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