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August 2013
News from Member Bodies, Affiliates and Regional Accounting Organizations
News from Government, Regulatory Bodies, and Other International Organizations
News from Member Bodies, Affiliates and Regional Accounting Organizations
1. Sir David Tweedie Inducted into Accounting Hall of Fame

Sir David Tweedie, former president of the Institute of Chartered Accountants of Scotland, former chair of the International Accounting Standards Board, and current member of the IFAC Nominating Committee, has been inducted into the Accounting Hall of Fame. The Hall welcomed Sir David, calling him a champion of integrity in international financial reporting and noting his efforts to lead the development of standards in the UK and globally. It also noted Sir Davids deep understanding of the issues, tireless dedication to the task, and boundless wit and good humor as the hallmarks of his leadership through a period of great progress toward a coherent approach to international financial reporting. The Accounting Hall of Fame is housed at the Fisher College of Business at Ohio State University in the US. Source: Accounting Hall of Fame
2. JICPA Seeks to Establish Non-Profit Accounting Framework
The Japanese Institute of Certified Public Accountants (JICPA) has taken steps toward establishing an accounting framework for non-profit organizations. In releasing Toward Establishing an Accounting Framework for Non-Profit Organizations (available in Japanese on the JICPA website), JICPA seeks to establish a common accounting framework for all non-profits in Japan, which currently follow a variety of accounting standards and rules and sometimes only disclose their financial information to regulators and not the public. Source: Japanese Institute of Certified Public Accountants
3. CPA Australia: Australian Government Missed an Opportunity

CPA Australia recently criticized the Australian government over an Economic Statement, calling it a missed opportunity to articulate a credible economic vision for the nation. CPA Australias chief executive, Alex Malley, said that the announced measures will cut jobs and increase the cost of living instead of turning a deficit into a surplus. What we needfrom both partiesis a credible, transparent vision that details the measures they will take to improve and sustain Australias international competitiveness. Only then will Australians have the necessary information to make an informed decision before heading to the polls. Source: CPA Australia
4. Study Shows Some Still See Accountants as Only Bean Counters

According to new information from the Nottingham Business School in the UK, traditional, stereotypical, and sometimes unflattering views of accountants are holding some entrepreneurs back from sharing their financial information with their accountants. The study, funded by the Chartered Institute of Management Accountants, reports that owner-managers risked poor cash-flow management and making decisions based in inadequate financial information because they did not want anyone else to know their business and because they see accountants as only bean counters. Action should be taken, according to Management Accounting Practices of UK Small- and Medium-Sized Entities (SMEs) by accountants to improve their image by promoting themselves in business partnering roles. Source: Accountancy Age
5. ICAI to Hold Two Conferences

The Institute of Chartered Accountants of India (ICAI) is hosting the 2013 International Conference for Chartered Accountant Students on September 14-15, 2013, in Kolkata, India. Accounting ProfessionalAce, Astute, and Adaptable will help students understand the intricacies involved in emerging innovations in accountancy, including auditing, ethics, and tax.

ICAI is also hosting the International Conference on Accountancy Profession: Emerging Frontiers of Future Growth, November 22-23, 2013, also in Kolkata. Sessions will include financial reporting, corporate finance, leadership, IT, and development of global trade. Source: Institute of Chartered Accountants of India
6. ICAS Announces Sustainability in Business Essay Competition

The Institute of Chartered Accountants of Scotland (ICAS) has announced its 2013 essay competition to encourage debate regarding sustainability in business. Entry is open to all accountants and students globally. Professionals and students in related fields are also encouraged to apply. Full details, including competition rules and topic details, can be found on the ICAS website. The competition, sponsored by Grant Thornton UK LLP, will accept submissions through September 30, 2013. Source: Institute of Chartered Accountants of Scotland
7. ICAEW: What are the Principles of Corporate Governance?

A new thought piece, What are the Overarching Principles of Corporate Governance?, from the Institute of Chartered Accountants in England and Wales (ICAEW) encourages corporate boards to focus on a set of simple but fundamental principles of corporate governance. It also outlines five short, purposeful, and aspirational overarching principles that apply to a wide range of companies. These principles should serve to remind corporate boards, and their stakeholders, what corporate governance should look like if a company is to meet its business purpose and other responsibilities. Source: Institute of Chartered Accountants in England and Wales
8. ANAN President Calls for Accountants to Be Agents of Positive Change

During a recent conference on International Financial Reporting Standards for Small- and Medium-Sized Entities (IFRS for SMEs), the president of the Association of National Accountants of Nigeria (ANAN) called on accountants to become agents of positive change and outlets of transformation in reporting standards in Nigeria. President Alhaji Sakirudeen Tunji Labode also emphasized the need for professional accountants to embrace and work with the small- and medium-sized entity (SME) sector, a significant contributor to the Nigerian economy that is frequently overlooked. Source: Association of National Accountants of Nigeria
9. MIA Conference: Managing Value, Accelerating Growth

The Malaysian Institute of Accountants (MIA) International Accountants Conference, Managing Value, Accelerating Growth, will be held November 26-27, 2013, in Kuala Lumpur. The conference will explore the economic and business outlook for the Asian region and how professional accountants can enhance their contribution toward their organisations sustainability, value creation, and business success. IFAC President Warren Allen will be the keynote speaker during the opening plenary session, Shaping the Accountancy Profession: A Global Perspective, and join a panel discussion, The Future of Corporate Reporting: How Does Integrated Reporting Impact Your Organization? Source: Malaysian Institute of Accountants
10. FACPCE Celebrates 40 Years

On August 9, the Federacion Argentina de Consejos Profesionales de Ciencias Economicas (FACPCE) celebrated its 40th anniversary. The celebration included former FACPCE presidents, members of the board and Supervisory Committee, technical advisors and staff, and national authorities and regulators. Source: Federacion Argentina de Consejos Profesionales de Ciencias Economicas
11. Recent Member Body Appointments and Elections

  • CA. Mahesh Kumar Guragain, President, The Institute of Chartered Accountants of Nepal
  • CA. Narendra Bhattarai, Vice President, The Institute of Chartered Accountants of Nepal
  • Mario Alonso, President, Instituto de Censores Jurados de Cuentas de Espana
  • Kimitaka Mori, President and Chairman, Japanese Institute of Certified Public Accountants
  • Johan Idris, President, Malaysian Institute of Accountants
  • Datuk Zaiton Mohd Hassan, Vice President, Malaysian Institute of Accountants
  • Bruno Razanairina, President, Ordre des Experts Comptables et Financiers de Madagascar
12. Joint Initiatives Launched Among Professional Accountancy Organizations

  • Essential Tools for Management Accountants, published by CGMA, a joint initiative of the Chartered Institute of Management Accountants and the American Institute of Certified Public Accountants, helps management accountants to identify the right management accounting tools from a crowded field and to obtain the full value from such tools. It does this by: supporting business in evaluating the value of the top management accounting tools; helping management accountants and the organization to select the appropriate tools; providing guidance and best practice on how to implement the tools effectively. Source: CGMA (fees may apply)
  • The Institute of Chartered Accountants in England and Wales and the Myanmar Institute of Certified Public Accountants have signed a Memorandum of Understanding to develop talent and advance the accountancy profession in Myanmar and Southeast Asia. Source: Institute of Chartered Accountants in England and Wales
News from Government, Regulatory Bodies, and Other International Organizations
1. US PCAOB Proposes Significant Changes to Auditor Reporting Model

The US Public Company Accounting Oversight Board (PCAOB) has proposed new rules that would, among other things, require auditors to identify and describe critical audit matters. The PCAOB also wants to change how company audits are reported to the public and the level of oversight auditors have over company reports. The comment deadline for the proposals is December 11, 2013. Sources: New York Times, Public Company Accounting Oversight Board, and Journal of Accountancy
2. GRI Publishes Survey Review of Integrated Reports

The Global Reporting Initiative (GRI) released a new survey report reviewing different ways integrated reports are taking shape around the world. The Sustainability Content of Integrated ReportsA Survey of Pioneers looks at 756 reports published from 2010 to 2012 following GRI Guidelines and surveys 52 organizations that issued integrated reports during all three years. Source: Global Reporting Initiative
3. Financial Reporting Conceptual Framework under Review by the IASB

The International Accounting Standards Board (IASB) has published A Review of the Conceptual Framework for Financial Reporting. The Discussion Paper sets out the underlying concepts for the preparation and presentation of financial statements and forms the basis for specific recognition and measurement requirements in International Financial Reporting Standards. Comments are requested by January 14, 2013. Source: International Accounting Standards Board
4. Literature Incorporated into Accountancy Education at US College

Should an accountancy education include studying great literature? Two professors at the University of Richmond in the US recently offered upper-level accountancy students a class in Victorian literature in an effort to reconnect them to the more liberal arts classes their university education began with. Selecting a career-related major does not reduce the importance of gaining a deep appreciation for literature, visual arts, history, political science, and the like, not to mention the critical thinking, reading, and writing skills that students can hone in those fields. According to the two professors, the students managed to draw numerous connections in their class discussions between [the] novels and their future lives in business. Source: Chronicle of Higher Education
5. World Forum on Natural Capital

The World Forum on Natural Capital, an UN-backed event, will be held in Edinburgh, UK, November 21-22, 2013. The event will be the first major global conference devoted to putting an economic value on natural capital (additional information on natural capital is available in Special Edition eNewsAccounting for Natural Capital). The conference is organized by the Scottish Wildlife Trust in association with the United Nations Environment Programme, World Business Council for Sustainable Development, International Union for Conservation of Nature, TEEB for Business Coalition, and the Wildlife Trusts. IFAC stakeholders are being offered a 10% discount on registration (promotional code IFAC10 when registering). Source: World Forum on Natural Capital
6. Opinion: Asiana Flight 214 Shows How Regulation Should Work

The editor at Compliance Week says the relatively small loss of life on Asiana flight 214 in San Francisco in July is a testament to how the air travel industry ceaselessly improves its product through regulatory-industry cooperation. The author asks, how did so many different groupsairlines, airplane makers, engine makers, industry regulators, employee unions, local governments, and morecome together to set a goal of passenger safety, and then work together to achieve it? That success is something every business executive should study, because so many other industries have tried something similar, and failed. Source: Compliance Week
7. NYSE Euronext Joins UN Sustainable Stock Exchanges Initiative

The NYSE Euronext is the newest member of the UNs Sustainability Stock Exchanges (SSE) Initiative. The initiative explores how exchanges can work together with investors, regulators, and companies to enhance corporate transparency on environmental, social, and corporate governance issues and encourage responsible long-term approaches to investment. In announcing its participation, Duncan L. Niederauer, CEO of NYSE Euronext, said, "We are proud to join the SSE initiative and partner with the UN and our industry to support best practices in corporate governance and transparency related to corporate sustainability." Source: NYSE Euronext
8. Malaysias Audit Framework Considered Equivalent to EC

The European Commission (EC) recently applauded Malaysias audit framework, saying it is on par with international standards and best practices. The EC said the frameworks rules pertaining to public oversight, quality assurance, investigation, and penalty systems for auditors and audit are equivalent to the ECs. The EC also accredited Abu Dhabi, Brazil, Dubai, Guernsey, Indonesia, Isle of Man, Jersey, Taiwan, and Thailand as countries that have met and followed similar standards as those set out in the EC audit framework. Source: Business News
9. Accountancy Legislation Anticipated in New Zealand

Legislation is anticipated later this year in New Zealand that will reform some aspects of the accounting profession. The government plans to introduce legislation to facilitate any possible trans-Tasman union between the New Zealand Institute of Chartered Accountants and the Institute of Chartered Accountants in Australia, should the members of both organizations vote to do so (see Global Digest April 2013 for additional information). The legislation will also allow auditors with appropriate qualifications to offer statutory audit services in New Zealand and audit firms to provide services through a company. Source: New Zealand Institute of Chartered Accountants
10. ESMA Opens Consultation on Financial Information Enforcement

The European Securities and Markets Authority (ESMA) has opened a consultation on enforcement of financial information published by listed organizations in the European Union (EU). ESMA: Guidelines on Enforcement of Financial Information aims to strengthen and promote greater supervisory convergence in existing enforcement practices amongst EU national authorities, thereby ensuring the proper and rigorous enforcement of financial information disclosure practices in the EU. Comments are requested by October 15, 2013; ESMA plans to publish final guidelines in 2014. Source: European Securities and Markets Authority
11. Provisional Decision from UK Competition Commission Does Not Include Auditor Rotation Requirement

The UK Competition Commission has published its provisional decision regarding the remedies it is considering introducing later this year, designed to promote a more competitive audit market. The commissions summary of its provisional decision on remedies includes measures to improve the bargaining power of companies and encourage rivalry between audit firms; measures to enhance the influence of the Audit Committee; and measures to promote shareholder engagement in the audit process. The provisional proposals require companies to put their statutory audit engagement out to tender at least every five years (may be deferred by up to two years) and prohibit Big 4 only clauses in loan documentation. The commission has decided against any new measures requiring mandatory audit rotation and audit firms providing non-audit services. Source: Competition Commission
12. Essay on Economic Decision Making Published by the AASB

Arguing there is a gap in the conceptual framework, that, if filled, would improve our ability to provide accounting responses to users needs, including through the development of a better, purpose-driven disclosure and presentation framework, the Australian Accounting Standards Board (AASB) has published the essay Rethinking the Path from an Objective of Economic Decision Making to a Disclosure and Presentation Framework. Source: Australian Accounting Standards Board
13. FSB Opens Consultation on Principles for Risk Appetite

A new consultation on risk appetite has been launched by the Financial Stability Board (FSB): Principles for an Effective Risk Appetite Framework. The paper features principles designed to enhance supervisory oversight of firms, especially systemically important financial institutions, by establishing minimum expectations for the key elements contained in an effective risk appetite framework, such as: an actionable risk appetite statement; quantitative risk limits; and clearly defined roles and responsibilities of the board of directors, senior management and business lines. Source: Financial Stability Board
14. IOSCO Sets Financial Benchmarks for Markets

The International Organization of Securities Commissions (IOSCO) has released Principles for Financial Benchmarks, a new framework for financial markets. The principles form an integral part of IOSCO?s work in leading efforts to enhance the integrity, the reliability, and the oversight of benchmarks by establishing guidelines for benchmark administrators and other relevant bodies. The principles cover governance, benchmark quality, quality of the methodology, and accountability mechanisms. Source: International Organization of Securities Commissions
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