1. International Federation of Accountants
Importance of Reliable Financial Reporting
in the International Context
September 2005 1

2. The International Accountancy Profession
The Profession
The International Accountancy Profession
Over 2.5 million professional accountants worldwide represented by over 160 IFAC member bodies in 119 countries
Contributes to every sector and aspect of the global economy

3. The Global Environment
Economic Stability and Growth
Achieved through:
Market-driven policies
Transparency
Sound corporate governance
Credible financial reporting

4. Building a Global Financial Infrastructure
The Global Environment
Transparent financial reporting process
Adherence to internationally recognized standards
Well-designed regulatory structure
Consistent application of regulations
Robust corporate governance

5. Financial Reporting Process
The Global Environment
Financial Reporting Process
Contributes to financial decision making
Characterized by integrity by all those in the financial reporting supply chain
Focuses on public interest
Investors have role

6. Public Interest Input and Oversight
IFAC activities are characterized by significant public interest input
This includes consultation with regulators, standard setters and outside stakeholders
Independent Public Interest Oversight Board (PIOB) oversees IFAC audit, ethics, and education standard setting and IFAC Member Body Compliance Program

7. Public Interest Oversight Board (PIOB)
Formally established in February 2005
Comprised of 10 members appointed by regulators and international organizations
Oversees the Public Interest Activity Committees
Provides input on due process and work programs

8. IFAC Standard Setting
IFAC Standard Setting
International Auditing and Assurance Standards Board (IAASB)
Ethics Committee
International Public Sector Accounting Standards Board
Education Committee
Member Body Compliance Program

9. Has a thorough and transparent due process
Standard Setting - IAASB
IAASB
Develops high-quality auditing, assurance and related services standards
Members include practicing accountants, academics, and representatives of business and government
Has a thorough and transparent due process
Obtains public input through CAG, as do other IFAC standard-setting committees

10. Standard Setting - Ethics
Ethics Committee
Develops Code of Ethics applicable to accountants in public practice, business and government
Code requires all accountants to act with integrity
Code features principles-based approach
No member body or firm is allowed to apply less stringent standards
Current focus on updating guidance on independence
Code serves as foundation for all codes of ethics developed and enforced by member bodies.
Code endorses concepts of objectivity, integrity, and professional competence
Code applicable to all professional accountants

11. International Public Sector Accounting Standards Board (IPSASB)
Standard Setting – Public Sector
International Public Sector Accounting Standards Board (IPSASB)
Strives to improve public sector financial management and accountability
Issues authoritative international public sector financial reporting standards
These standards help to build credibility in financial reporting by governments

12. Standard Setting - Education
Education Committee
Develops standards and guidance for education and development of professional accountants worldwide
Strives to achieve global quality and consistency in accounting education
Underpins all standard-setting

13. Member Body Compliance Program
IFAC Compliance Program
Statements of Membership Obligations serve as the foundation
Requires incorporation of IFAC and IASB standards by member bodies
Requires that member bodies have quality assurance and disciplinary programs
Provides global snapshot of the profession with information posted on IFAC website.

14. Value of International Standards
Conclusion
Value of International Standards
Contributes to --
Efficient functioning of capital markets
Greater comparability of information
Investor confidence

15. International Federation of Accountants 1