IFAC urges G20 to call for global adoption of IFRSs

  • IFAC (International Federation of Accountants) (lt gray) Image
  • G20 (lt green) Image

26 Aug 2016

The International Federation of Accountants (IFAC) has submitted recommendations for endorsement by the Group of Twenty (G20) during their meeting in China on 4-5 September 2016.

The recommendations are grouped into two overarching aims:

  • Stronger governance for trust and integrity in business and public sector. In this context the IFAC calls on the G20:
    1. to strengthen governance, to combat fraud and corruption, and to restore public trust and integrity;
    2. to enhance public sector financial management by actively encouraging the adoption of accrual-based accounting in the public sector and by requiring the FSB to encompass the public sector; and
    3. to promote integrated reporting.
  • Creation of a cooperative, consistent, and smart global regulatory environment. The five recommendations in this case are:
    1. to develop and promote the global adoption of clear principles for good regulation;
    2. to acknowledge the importance of international standards;
    3. to enhance global consistency;
    4. to call for cooperation on taxation; and
    5. to establish a permanent G20 secretariat.

The recommendation on international standards expressly refers to IFRSs:

Issue a clear call for the adoption and implementation, across all jurisdictions, of:

  • International Financial Reporting Standards;
  • International Standards on Auditing;
  • Auditor independence requirements set out in the Code of Ethics for Professional Accountants, issued by the International Ethics Standards Board for Accountants; and
  • International Public Sector Accounting Standards (IPSAS).

Please click to access the full letter and a corresponding press release on the IFAC website.

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