IFAC provides recommendations to G-20
08 Oct 2014
The International Federation of Accountants (IFAC) has issued a letter to the G-20 outlining eight recommendations for the G-20 to consider at the G-20 Leader’s Summit on 15-16 November 2014. The recommendations focus on supporting economic growth and a resilient economy as well as addressing financial regulatory reform and the international taxation system. They include the adoption and implementation of IFRSs.
The IFAC classified each recommendation within one of three categories: (1) global consistency for sound financial regulation, (2) financial management, reporting, transparency, and accountability by governments, and (3) effective taxation systems.
Global consistency for sound financial regulation
In this category, the IFAC provides recommendations that will assist in providing a consistent global framework when addressing issues. These recommendations to the G-20 include:
- Continue its momentum for regulatory reform and convergence.
- Governments and regulators adhere to principles of high-quality regulation.
- Strengthening international regulatory organizations’ resourcing and governance arrangements, including a clarification of expectations and responsibilities of standard setters.
- Adoption and implementation of IFRSs, ISAs, IPSASs and the Code of Ethics for Professional Accountants’ requirements for auditor independence.
Financial management, reporting, transparency, and accountability by governments
In this category, the IFAC provides recommendations that may enhance a government and/or public sector’s financial management practices. These recommendations to the G-20 include:
- Adoption of accrual-based accounting by governments and public sector institutions.
- Increase transparency and accountability in public sector financial management to protect the public and investors in government bonds.
- Require the FSB to encompass public sector arrangements; create a working group within the FSB that examines public sector financial reporting, transparency (including deficit spending), and accountability; direct the FSB to include IPSASs.
Effective taxation system
In this category, the IFAC recommends an enhancement to the taxation system that applies to all organizations, regardless of size. In addition, the G-20 should support the OECD in its work concerning the transparency and integrity of the taxation system and reporting.
For more information, see the letter to the G-20 on the IFAC’s website.
