Standard setters strengthen links with global institute

GLOBAL STANDARD SETTERS the IASB have signed a cooperative pact with cross-border institute the International Federation of Accountants.

IFAC supports the International Public Sector Accounting Standards Board in writing accounting standards (IPSAS), which are primarily based on the IASB's international financial reporting standards.

The IASB said the memorandum of understanding "reflects [the two bodies'] shared conviction that the transparency provided by high-quality financial reporting standards contributes significantly to the effective functioning of capital markets and sound economic growth".

It also acknowledges the ongoing cooperation between the IASB and another of the IFAC's interests, the International Auditing and Assurance Standards Board.

IFAC chief executive officer Ian Ball said: "International Public Sector Accounting Standards are the benchmark for financial reporting in the public sector and the means for governments to signal their commitment to transparency. This agreement accelerates the existing cooperation between the two boards and enhances the IPSASB's ability to continue to develop high-quality standards."