IFAC: Single standard key to economic growth

An inaugural survey by the
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

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

Related reading

Fiona Westwood of Smith and Williamson.