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The International Federation of Accountants (IFAC) is an association of national professional accountancy organisations that represent accountants employed in public practice, business and industry, the public sector, and education, as well as some specialised groups that interface frequently with the profession. IFAC works to develop the profession globally and to harmonise professional standards worldwide to enable accountants to provide services of consistently high quality in the public interest across political borders. Currently, IFAC has 158 member bodies and associates in 123 countries, representing over 2.5 million accountants. Click for Links to IFAC Member Bodies. |
This page includes information and links for the following:
IFAC's Role as a Standard Setter
IFAC's boards set the following standards:
- International Standards on Auditing, Review, other Assurance, Quality Control and related services (IAASB)
- International Code of Ethics (IESBA)
- International Education Standards (IAESB)
- International Public Sector Accounting Standards (IPSASB)
IFAC supports the IASB with respect to setting accounting standards.
IFAC Standard-Setting Reforms in 2003
In November 2003, the Council of IFAC approved a set of reforms designed to strengthen international audit standard-setting processes, achieve convergence to international standards, and ensure that the international accountancy profession is responsive to the public interest. The reforms provide for a more transparent standard-setting process with greater public input. A Public Interest Oversight Board (PIOB) was established to oversee IFAC's standard-setting activities, particularly with respect to auditing, assurance, ethics, and independence. The PIOB will also oversee IFAC's compliance activities. The reforms also provide a means for ongoing dialogue between regulators and IFAC through the establishment of an IFAC Leadership Group and a Monitoring Group comprised of regulators. Click for:
IFAC Governance Reforms in 2006
In November 2006, IFAC adopted changes to its governance structure that were developed by a special Constitutional Working Group and then subject to public comment:
- IFAC Constitution. The Constitution is the primary governance and foundation document of IFAC.
Click to Download the IFAC Constitution (PDF 77k).
- IFAC Bylaws. The Bylaws incorporate existing items from within the Constitution that provide greater detail in support of items addressed and include new provisions to further support the Constitution. The IFAC Board has authority to amend the Bylaws with immediate effect until the next Council meeting, at which time the Council would need to approve the amendment for it to become permanent.
Click to Download the IFAC Bylaws (PDF 69k).
- IFAC Policies and Procedures Manual. The manual contains policies and procedures determined by the IFAC Board and management to support the Constitution and Bylaws.
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International Public Sector Accounting Standards Board(IPSASB)
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IFAC's standard-setting responsibilities are in the areas of auditing, public sector accounting (government and non-profit organisations), education, and ethics. It looks to IASB in the area of accounting standards. Click for:
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International Auditing and Assurance Standards Board(IAASB)
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International Standards on Auditing (ISAs) are set by the International Auditing and Assurance Standards Board (IAASB) -- until 2002 known as the International Auditing Practices Committee (IAPC). The ISA on the auditor's report on financial statements requires that the auditor's opinion must clearly indicate the financial reporting framework used to prepare the financial statements (including the jurisdiction of origin of the financial reporting framework when the framework used is not International Accounting Standards) and state the auditor's opinion as to whether the financial statements give a true and fair view (or are presented fairly, in all material respects) in accordance with that financial reporting framework and, where appropriate, whether the financial statements comply with statutory requirements. Click for:
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International Accounting Education Standards Board
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The International Accounting Education Standards Board (IAESB) – formerly the IFAC Education Committee – develops guidance to improve the standards of accountancy education around the world and focuses on two key areas:
- The essential elements of accreditation, which are education, practical experience and tests of professional competence; and
- The nature and extent of continuing professional education needed by accountants.
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IAESB pronouncements are of three types:
- International Education Standards (IESs) express the benchmarks that IFAC member bodies are expected to meet in the preparation and continual development of professional accountants. They establish the essential elements of the content and process of education and development at a level that is aimed at gaining international recognition, acceptance and application.
- International Education Guidelines for Professional Accountants (IEGs) interpret, illustrate, elaborate, or expand on matters related to International Education Standards. The guidelines assist IFAC member organizations with implementing the standards. The guidelines may also recommend practice that is wider or deeper than the practice described in the IESs.
- International Education Papers for Professional Accountants (IEPs) explain, examine, analyze, or otherwise critically assess education issues and practices. The aim of these papers is to encourage consideration and comment on the issues so they may be advanced. The papers may also be descriptive, aiming to promote awareness of, and transfer knowledge and information on, education and development issues or practices relating to the accountancy profession.
International Ethics Standards Board for Accountants (IESBA)
IFAC's International Ethics Standards Board for Accountants (IESBA) maintains the international Code of Ethics for Professional Accountants to serve as a model for all codes of ethics developed and used by national accountancy organizations. The Code applies to all professional accountants, whether they are in public practice, industry, commerce, the public sector or education. The IESBA also develops interpretations of the Code of Ethics to address questions that have broad implications.
Public Interest Oversight Board (PIOB)
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The Public Interest Oversight Board (PIOB) is an independent body formed in 2005 to exercise comprehensive oversight over all of the activities of the International Federation of Accountants that affect the public interest – particularly the establishment of auditing, ethics, and education standards for accountants and compliance of IFAC member bodies with IFAC rules.
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Forum of Firms (FOF) and Transnational Auditors Committee
Launched in January 2001, the Forum of Firms (FOF) is an organisation of international firms that perform audits of financial statements that are or may be used across national borders. Members of the Forum voluntarily agree to meet certain requirements, including undergoing a global independent quality review. Commitment to the obligations of membership in the Forum contributes to raising the standards of the international practice of auditing in the interest of users of the profession's services.
The FOF conducts its business primarily through the Transnational Auditors Committee, an IFAC committee whose members have been nominated by the members of the Forum.
IFACnet Knowledge Base for Accountants in Business
In October 2006, the International Federation of Accountants, in collaboration with 13 member organisations, launched a web-based knowledge base for professional accountants in business, to be known as IFACnet – www.ifacnet.com. The objective is "to provide one-stop access to leading-edge articles, good practice guidance, and tools and techniques for accountants employed in commerce, industry, the public sector, education, and the not-for-profit sector". IFACnet will include information on strategy, budgeting and planning, corporate governance, risk management, and professional development. IFACnet includes shared electronic resources from IFAC and the 13 participating organisations. Expansion is planned for 2007. There is no fee to use IFACnet, although certain search results may identify documents or publications available for purchase. Click for Press Release (PDF 92k).
International Forum on Accountancy Development
The International Forum on Accountancy Development (IFAD) was created as a working group between IFAC, the Basel Committee, IOSCO, the large Accounting Firms, OECD, UNCTAD, and the World Bank and regional development banks, which flowed from the East Asian crisis. Its mission was to improve market security and transparency, and financial stability on a global basis. It published several studies of convergence of national GAAPs and IFRSs. IFAD completed its work in 2002.
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IFAC Member Body Compliance Programme
In July 2003, IFAC began a Member Body Compliance Programme to monitor and assess compliance with IFAC's membership obligations by IFAC's 163 member bodies. The programme is being conducted in two parts:
- Part 1 – information gathering. A questionnaire was distributed in March 2004 to identify the regulatory requirements and standard-setting processes in member body countries with respect to standards for auditing accounting, ethics, public sector, and education. Part 1 questionnaire and responses are posted on IFAC's Website.
- Part 2 – member body self assessment. The goal of this step is to provide information on compliance by member bodies with IFAC's Statements of Membership Obligations. Part 2 was launched in December 2005. Each IFAC member and associate was sent a package of materials including an instruction guide to Part 2 and confidential access to their self-assessment questionnaire. You can view the questionnaire and responses at IFAC's Website.
Statement of Membership Obligation 7 International Financial Reporting Standards, which took effect in 2004 and applies to both full and associate IFAC members, requires the following:
- 1. Member bodies of IFAC should support the work of the IASB by notifying their members of every IFRS.
- 2. The IASB exposes proposed IFRSs for public comment. Member bodies are encouraged to notify their members of all exposure drafts issued by the IASB and to encourage them to comment on behalf of those members that have an interest in accounting standards.
- 3. Member bodies should use their best endeavours:
- (a) To incorporate the requirements of IFRSs in their national accounting requirements, or where the responsibility for the development of national accounting standards lies with third parties, to persuade those responsible for developing those requirements that general purpose financial statements should comply with IFRSs, or with local accounting standards that are converged with IFRS, and disclose the fact of such compliance; and
- (b) To assist with the implementation of IFRSs, or national accounting standards that incorporate IFRSs.
- 4. Interpretation. A member body has used 'best endeavours' if it could not reasonably do more than it has done and is doing to meet the particular membership obligation.
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