Upload
nicholas-reeves
View
215
Download
0
Embed Size (px)
Citation preview
Page 1 | Confidential and Proprietary Information
IFAC and International Standard Setting – UPDATE
Page 2 | Confidential and Proprietary Information
• Currently being developed, taking account of Strategy Review Survey– INTOSAI response
– Board approval in September; Council approval in November
• Proposals include the establishment of an International Standards Setting Forum– Membership: international standard setters and those affected by
international standards
– Objective: To discuss critical issues requiring action and intervention, including governance, due process, and adoption and implementation
IFAC Strategy for 2016-2018
Page 3 | Confidential and Proprietary Information
• Supported by 82.6% of survey respondents; however, detailed comments …– Questioned membership and objective
– Strongly cautioned against duplication of efforts (e.g., Consultative Advisory Groups)
• Planning and Finance Committee expressed mixed support and suggested …– Modifying action to “explore whether to establish” a forum
– Clearly articulating the forum’s membership and objective before deciding whether it should be established
International Standard Setting Forum
Page 4 | Confidential and Proprietary Information
• Professional Accountancy Organization (PAO) Capacity Building Program– Includes building
capacity of public sector accountants and auditors
Capacity Building
Page 5 | Confidential and Proprietary Information
International Framework:Good Governance in the Public Sector
Good Governance in the Public Sector
Page 6 | Confidential and Proprietary Information
• Accrual reporting is the benchmark
• Increasing IPSAS adoption
• Accrual budgeting gains support
• Financial management still weak
• Integrated reporting on the horizon
Public Sector Financial Reporting—Current Situation
Austria Russia
Brazil Slovakia
Chile South Africa
Columbia Spain
Costa Rica Switzerland
Estonia Thailand
Indonesia European Commission (for their
own financial statements)
Kenya North Atlantic Treaty Organization
(NATO)
New
Zealand
Organisation for Economic Co-
operation and Development
(OECD)
Panama United Nations System
Peru
Government debt fears spook global markets IMF: “IPSAS are the only international standards designed for the public sector” January, 2014
Page 7 | Confidential and Proprietary Information
Transparency and Accountability in the Public Sector
• Accountability. Now.
– Campaign
– Coalition (INTOSAI invited to join)
– Workshops
– Capacity building
Page 8 | Proprietary and Copyrighted Information
International Public Sector Accounting Standards Board (IPSASB)
OUTPUTS
High-quality financial reporting standards and other publications for the public sector
Outreach and stakeholder engagement to raise awareness, acceptance and adoption
OUTCOME
That decision-making and accountability of public sector entities are improved and global fiscal stability and sustainability are enhanced by credible and transparent financial reporting that results from the adoption of accrual-based IPSASs
Strengthening public financial management and knowledge globally through increasing adoption of accrual-based IPSASs
Page 9 | Proprietary and Copyrighted Information
Strategic Emphasis
Converge with IFRS
Maintain Existing IPSASs
Other Projects
Public Sector
Specific
Page 10 | Proprietary and Copyrighted Information
Priorities
Social Benefits *
Non-Exchange Expenses
Heritage Assets / Infrastructure Assets
Revenues – Exchange and Non-Exchange
Maintain Existing IPSASs
Measurement
Emissions Trading Schemes *
Financial Instruments *
Public Sector Combinations * Employee Benefits IPSAS 25 *
Leases
Cash Basis IPSAS
Public Sector Specific
Page 11 | Proprietary and Copyrighted Information
Influences and Factors
Coordination with Government Finance Statistics (GFS) and IFRS-Alignment where appropriate
European Public Sector Accounting Standards (EPSAS)-Monitoring developments
Stakeholder Outreach-Benefits of accrual-based IPSAS-Transition from cash/modified cash-basis to accrual basis
Page 12 | Proprietary and Copyrighted Information
• "A Closer Look at:" series
• Implementation resources– IPSAS 33, First-time Adoption of Accrual Basis IPSAS
– Importance of Accrual-Based Financial Reporting in the Public Sector
– Study 14—Transition to the Accrual Basis of Accounting: Guidance for Governments and Government Entities (Third Edition)
• Introduction to IPSAS Train-the-trainer
• IPSAS and Accrual Accounting News
IPSASB—Implementation Support
Page 13
International Auditing and Assurance Standards Board (IAASB)
• Key projects finalized– Auditor Reporting
• New Key Audit Matters section; revised modifications to opinions; enhanced reporting on going concern
– ISA 720 – Other Information• Enhanced work effort and reporting
– Disclosures (subject to PIOB approval)• Greater emphasis on disclosures through strengthened requirements and
enhanced application material; in particular in relation to qualitative disclosures
Page 14
• IAASB-supported “roll-out plan” with objectives of– Promoting awareness
– Informing and educating users
– Learning about experiences of those responsible for adopting and implementing the standards
– Preparing for post-implementation review
• Planned activities – Outreach and other communications
– Auditor Reporting Toolkit
Auditor Reporting - Implementation Support
New and revised Auditor Reporting standards are effective for periods ending on or after December 15, 2016
Page 15
• Available now– Auditor Reporting Fact Sheet– Basis for Conclusions– “At a Glance” publication – Publications on GC and KAM – Slide Presentation– Illustrative KAM examples – National Publications
• Coming soon− Listings & extracts of illustrative reports − Webcast and podcasts
Auditor Reporting Resources & Toolkit
Page 16
New and Forward IAASB Initiatives
• Review of Quality Control Standards – ISA 220 & ISQC 1
• Group Audits
• Professional Skepticism
• Financial Institutions– Including accounting estimates and fair values (ISA 540)
• Monitoring developments in Integrated Reporting and Data Analytics
Page 17 | Proprietary and Copyrighted Information
International Ethics Standards Board for Accountants (IESBA) – Priority Projects
• Responding to non-compliance with laws and regulations– Re-ED issued May 2015; new response framework proposed
– Comments requested by Sept 4, 2015
• Improving structure of IESBA Code– Enhancing usability to facilitate adoption and implementation
– ED approval anticipated Dec 2015
• Review of safeguards in the Code– Clarity, appropriateness and effectiveness of safeguards
– ED approval anticipated Dec 2015
• IESBA supportive of ISSAI 30 initiative