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IFAC urges G-20 to adopt global standards

  • IFAC (International Federation of Accountants) (lt gray) Image

26 Jun 2010

The International Federation of Accountants (IFAC) has submitted a Series of Recommendations for consideration by the G-20 at its meeting on 26-27 June 2010 in Toronto, Canada.

The recommendations emphasise the need for greater transparency and accountability in public sector finances and urge the G-20 to support adoption of International Financial Reporting Standards globally. IFAC's recommendations:
  1. The G-20 should strongly encourage all governments to provide greater transparency and accountability in public sector finances.
  2. The G-20 should encourage all governments to provide transparency and greater accountability in respect to stimulus programs and bailout plans designed to alleviate the global financial crisis.
  3. The G-20 should encourage all nations to monitor government debt and liabilities for their true economic implications.
  4. In order to better assess systemic risks in government debt and liabilities on a global level, the G-20 should urge the adoption and implementation of International Public Sector Accounting Standards (IPSASs) in countries throughout the world.
  5. The G-20 should encourage all governments to adopt and implement common global standards not only for public sector accounting, but also for accounting, auditing, and auditor independence.
Regarding recommendation 5 above, IFAC's letter states:

In order to improve the ability of capital markets to work globally, to allow investments to move more efficiently across borders, and to reduce risks and uncertainties in the capital markets, the G-20 should encourage the early adoption and implementation of International Financial Reporting Standards (IFRS), International Standards on Auditing (ISAs), and the auditor independence requirements set out in the Code of Ethics for Professional Accountants. This will assist the G-20's goal of strengthening transparency and accountability in the context of financial and capital markets and creating a level playing field in the interpretation and exchange of financial information. Consistent financial information around the world can do much to facilitate cross-border activity and economic and financial stability.

Click here for IFAC's Recommendations for the G-20 Nations (PDF 201k).

 

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