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IFAC highlights the importance of accountants in driving economic growth, stability

IFAC has released a new report highlighting the importance of the accountancy profession as a key driver of progress in the adoption of international standards, driving further economic growth and stability.

IFAC highlights the importance of accountants in driving economic growth, stability
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accountants in driving economic growth
  • Maja Garaca Djurdjevic
  • October 15, 2019
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In celebration of World Standards Day, the International Federation of Accountants (IFAC) has released a new report that includes data from over 170 professional accountancy organisations that comprise the body’s membership, and details how and where international accountancy standards are being adopted and implemented globally.  

The International Standards: 2019 Global Status Report revealed that 90 per cent of jurisdictions examined use International Standards on Auditing, International Financial Reporting Standards, and the International Code of Ethics for Professional Accountants. 

Moreover, it showed that 80 per cent of the jurisdictions have monitoring enforcement mechanisms for quality assurance and investigation and discipline, while 76 per cent of IFAC members have some level of authority in adopting international standards and best practices.

The report also shines a light on the important and often untold story of how standards are adopted and implemented – a process that can be as complex as developing a standard.

“Since there are no international laws requiring nations to adopt and implement international standards, support from IFAC’s member organisations for these dual objectives is critically important to progress,” according to IFAC CEO Kevin Dancey. “This new report reinforces the impact of standards in driving transparency and creating a common language for high-quality financial information.”

According to the new report, there is a positive trend in international standards’ usage where IFAC member organisations have at least some authority in the standard-setting and regulatory environment.

However, IFAC judged that additional multi-stakeholder support from international policymakers and regulatory organisations, as well as leaders from government, academia and business, is required to extend the adoption success story by creating the right conditions for implementation.   

“International standards have come a long way since 2000 when there was little to no global adoption,” said Mr Dancey.

“While there is always more to be done, IFAC member organisations play a vital role in ensuring the successful implementation of international accountancy standards, which ultimately help drive sustainable economic growth and financial market stability in their respective jurisdictions.”

You can access the International Standards: 2019 Global Status Report's here.

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