IFAC: Single standard key to economic growth

An inaugural survey by the International Federation of Accountants (IFAC) of 143 accountancy leaders from 91 countries, shows an overwhelming majority of 89% believes convergence to international public sector accounting standards (IPSASs) is ‘very important’ or ‘important’ for economic growth in their countries. Only 1% said it was not important, and 9% said it was ‘somewhat important’.

The IFAC survey also shows that, in the coming year global accountancy leaders will focus on attracting new accounting talent to their ranks, particularly in regions such as sub-Saharan Africa, the Middle East, North Africa and North America, where the most pressing staff shortages exist.

Other key findings showed the limited supply of qualified accounting professionals was having a negative effect on the growth of some national economies; applying new accounting standards was the most important issue faced by professional accountants working in business, followed by adopting good practice in internal control and risk management; auditor liability remained a significant national issue; and effectively supporting SMEs was an important issue for the global profession and would have an impact on economic development.

Leaders of accountancy bodies in countries that are not applying IPSASs overwhelmingly believe that, if their governments did adopt these standards, it would result in their countries’ increased economic growth and development.

Further reading:

Tighter audit standards adopted by UN

CIMA welcomes 'principles-based' IFAC documents