Delivering Value through Our Global Network - INTEGRATED ANNUAL REVIEW 2018 - IFAC
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Delivering Value through Our Global Network INTEGRATED ANNUAL REVIEW 2018
CONTENTS
Report to Our Stakeholders.................................................................................................................................. 4
Future Ready...................................................................................................................................................................... 5
ABOUT THIS 2018 ANNUAL REVIEW How IFAC Creates Value .......................................................................................................................................... 8
Delivering Value through Our Global Network.................................................................................... 8
Our Governance...........................................................................................................................................................10
IFAC advocates globally for integrated reporting because it is helps organizations deliver higher-quality
information with real meaning. Information that serves the public interest by telling a clearer value creation OBJECTIVES
and preservation story to stakeholders, employees, investors and capital markets, and, ultimately, to the Supporting International Standards............................................................................................................14
communities they serve.
Speaking with a Global Voice............................................................................................................................18
IFAC’s 2018 integrated annual review helps us remain accountable to our member organizations and Growing Membership.............................................................................................................................................22
stakeholders. It also improves understanding of our strategic objectives and achievements, and their Develop the Accountancy Profession........................................................................................................24
connection to the overarching key outcomes IFAC—on behalf of our members—seeks to advance.
Supporting Key Constituencies.......................................................................................................................26
The review provides information on our financial, human, intellectual, and social and relationship capitals Our Human and Intellectual Resources....................................................................................................28
alongside how we create value through our governance, strategy, resource deployment, and key activities.
APPENDICES
It continues our efforts to work with the integrated reporting principles and concepts IFAC advocates for
globally, as set out in the International Integrated Reporting Council’s Integrated Reporting Framework. As Financial Highlights...................................................................................................................................................32
part of the journey, the IFAC Board provided directional input and review. Our Global Network..................................................................................................................................................35
IFAC Members............................................................................................................................................................35
This review is part of our 2018 reporting suite, which also comprises our Financial Statements for the year
Associates ....................................................................................................................................................................37
ended December 31, 2018, available on the IFAC website.
Affiliates.........................................................................................................................................................................37
Regional Organizations...........................................................................................................................................37
Accountancy Groupings........................................................................................................................................37
Our Volunteers...............................................................................................................................................................38
IFAC Board ...................................................................................................................................................................38
IFAC Board Subcommittees..................................................................................................................................39
Nominating Committee.........................................................................................................................................39
IFAC Committees ......................................................................................................................................................39
Copyright © 2019 by the International Federation of Accountants® (IFAC®).
For copyright, trademark, and permissions information, please see back cover.
REPORT TO OUR STAKEHOLDERS
From the President and the Chief Executive Officer
We are living in an era of disruption and opportunity.
FUTURE READY
Entirely new technologies, industries, and innovations are emerging frequently and swiftly. Business models and
needs are evolving. Expectations for accountants and the profession are on the rise. Scanning the Horizon Future generations
Competition is intensifying for talent, especially talent that is increasingly
Rapidly-changing economic and social trends require the profession and IFAC
Rapid and continual changes brings both challenge and great opportunity for accountancy. mobile. Globally, there are also widening gaps between available skills
to be agile and proactive. IFAC continually assesses global trends and their
and employers’ needs, as well as a greater drive for workforce diversity and
With their finger on the pulse of changing needs, our member organizations and their members are at the impact on accountancy, including these four paradigm-shifting trends.
forefront of change. Working together, we can leverage disruption, change, and innovation to expand the inclusion. To compete, the profession must effectively demonstrate and
profession and direct our future. Accountancy in the digital age communicate our relevance and advancement opportunities.
Collaborating with our member organizations throughout 2018, IFAC further supported our members as they We are in the midst of the fourth industrial revolution in which our The accountancy profession shares a responsibility to evolve and ensure it is
deliver a truly global profession of competent, credible, professional accountants equipped to respond to physical, digital, and biological worlds are blurring with unprecedented fully capable of harnessing change. How quickly can we react to change? How
changing needs. Accountants who are recognized as essential to strong, sustainable organizations, financial scope and speed. These disruptive changes and new business models nimble and agile can we be?
markets, and economies. Rachel Grimes result in a demand for new skills from professional accountants, including
4 President increased efficiencies and innovation. Working with and leveraging the thought leadership of our member 5
By focusing on delivering the greatest stakeholder value and channeling our comparative advantages, IFAC
organizations and others within our global network, IFAC proactively addressed
refined its emphasis on stakeholder satisfaction, while also delivering high-quality content and building the
structures that will sustain even greater success in the future. We are proud of IFAC’s achievements in 2018 and
Trust in business, capital markets, and the profession these emerging challenges and opportunities in 2018, including by developing
excited at what the future holds. Public trust in governments and institutions is at an all-time low. a new strategic plan.
Simultaneously, the profession faces questions about ethics,
Top among these achievements was the 2018 World Congress of Accountants in Sydney, Australia, hosted by
IFAC, Chartered Accountants Australia and New Zealand, and CPA Australia. This pinnacle event for the global professionalism, the adequacy of the standards, and performance in
accountancy profession attracted more than 5,000 finance and business leaders, policy setters, and accountants relation to those standards. We have the opportunity, and responsibility, to
and inspired them to take charge of our profession’s future. The conversations begun in Sydney will continue at
the 2022 World Congress, which will take place Mumbai, India.
be part of the public conversation about rebuilding trust, including audit
and corporate governance.
Vision
A global accountancy profession that is essential to
We completed our terms as president and CEO in 2018 and gratefully acknowledge the commitment and Multi-capitalism and long-term thinking and reporting strong, sustainable organizations, financial markets, and
support of the IFAC Board, our member organizations and key stakeholders, and dedicated volunteers and staff.
Investors and others assessing organizational performance increasingly economies.
Without their tireless efforts, none of IFAC’s many accomplishes would be possible.
take a broader multi-capital perspective based on value creation. Evolving
Fayez Choudhury business demands require accountants be able to contribute to how value
creation is managed and reported—in a way that drives both corporate
Purpose
Chief Executive Officer
IFAC, with its member organizations, serves the public
responsibility and growth. Tomorrow’s successful entities will be strategically
interest by enhancing the relevance, reputation, and value
nimble, future ready, and embrace innovation, as will the professional
of the global accountancy profession.
Rachel Grimes Fayez Choudhury accountants who support them.
President Chief Executive Officer
2019-2020 Strategic Plan With the Strategic Plan, 2019-2020: Build Trust. Inspire Confidence. as our
roadmap, we will employ our unique comparative advantages to achieve IFAC’s Unique Comparative Advantages
With these trends in mind, we crafted a fresh two-year strategic plan in these outcomes, and greater stakeholder satisfaction. We will also increase
consultation with our member organizations and key stakeholders. Strategic global confidence in the accountancy profession’s ability to act independently
Natural Facilitator
Plan, 2019-2020: Build Trust. Inspire Confidence. identifies our mission-critical and provide high-quality services in the public interest.
objectives and resulting strategic actions. It is a clear vision and mission that is IFAC convenes key groupings of professional accountants and professional accountancy organizations on a global level.
durable beyond the two-year period covered in the plan. We identify and debate key issues, opportunities, and challenges relevant to the profession. We actively contribute to
improving organizational reporting by contributing to and promoting the development, adoption, and implementation of
Our strategic objectives for 2019-2020 are:
high-quality international standards.
●● Contributing to and promoting the development, adoption, and
implementation of high-quality international standards;
6 7
●● Preparing a future-ready profession; and Trusted Intermediary
●● Speaking out as the voice of the global profession.
IFAC strengthens the profession by leveraging its global experience and relationships with key stakeholders, development
As IFAC is a member organization, successful execution will be underpinned
partners and professional accountancy organizations.
by a deep focus on stakeholder engagement and leveraging their talents.
Multi-stakeholder engagement will also be crucial.
Accomplishing our objectives will require IFAC to: Knowledge Gateway
●● Engage with our member organizations, stakeholders, and multilateral IFAC provides a global forum to share, synthesize, and create knowledge to support professional accountancy organizations
international institutions; and all accountants in providing high-quality services.
●● Explore opportunities to amplify knowledge and insights, focus on
thought leadership, and explore research and partnership opportunities;
and Influential Voice
●● Harness our reputation and expertise to support professional accountancy
organizations (PAOs) at the national and regional level, collaborate on IFAC represents and advocates, in the public interest, on behalf of the global accountancy profession, and increases
public policy and regulatory issues, and promote PAOs and the profession awareness of the profession as essential to sustainable organizations, financial markets, and economies.
to key stakeholders and other influencers.
Learn more in the 2019-2020
Strategic Plan
D E L I V E R I N G VA LU E T H R O U G H O U R G LO B A L N E T W O R K
IFAC GOVERNANCE STANDARD-SETTING GOVERNANCE IFAC KEY SERVICES IFAC COMPARATIVE IFAC KEY OUTPUTS KEY OUTCOMES
HOW IFAC
ADVANTAGES
Council
Monitoring Group Oversight Supporting international Natural Facilitator Guidance on international Strong and sustainable professional accountancy
Consultation
CREATES /Advice Oversight standards standards organizations developing and enhancing the
Board Nominating Trusted Intermediary quality of professional accountants
Committee Public Interest Public Interest
Oversight Board Committee
Accountancy capacity Global Knowledge Sharing Member organizations and A global exchange of knowledge and ideas
VALUE Committees
Audit
Interim
Nominating Standard-Setting Boards Standard-Setting Board
building
Quality & membership
Platform
Influential Voice
country profile assessments and
updated action plans for all
member organizations
Effective policy and regulatory decisions aligning
the profession with the needs of the public
Committee Supporting the profession Enhanced recognition of and confidence in
Governance International Audit and Assurance Standards International Public
Programs to build PAO capacity professional accountants, and their relevance,
Board Sector Accounting
VISION FOR THE Planning and Finance
Standards Board
Global advocacy
Global Knowledge Gateway and
reputation, and value
International Ethics Standards Board for
PROFESSION Accountants other thought leadership, tools
Enhanced awareness of and dialogue on public
interest and professional issues among key
International Accounting Education Standards and guidance
Essential to Strong, constituencies
Board Programs and materials to
Sustainable Organizations, Reliable, comparable and timely organizational
Financial Markets, and enhance transparency and reporting
IFAC 2018 STRATEGIC OBJECTIVES accountability in the pubic sector Confidence in high-quality international standards
Economies
Support the development of international standards, and influence their adoption and
Operational and
Policy positions, opinions, and
that are adopted and implemented 9
Funding Support for across the globe
implementation points of view
Standard Setting
IFAC PURPOSE Be recognized as the leading voice for the global accountancy profession
Grow membership and improve quality
IFAC, with its Member SHARED RESOURCES
Strengthen the global accountancy profession
Organizations, Serves the AND INPUTS REPORTING
Support high-quality practices by professional accountants
Public Interest by Enhancing IFAC Staff and Infrastructure
Sustain organizational performance
the Relevance, Reputation, Support KPIs: Defining Success - IFAC Board
and Value of the Global Communications HR Value to members and stakeholders: Integrated Annual Review
Accountancy Profession IFAC RESOURCES AND INPUTS Finance IP
Staff Governance Operations
VALUES Knowledge Group, Management Advisory Team, Quality & Development Funding
Integrity, Expertise, and Key Stakeholders Advisory Groups Membership Dues
Member Organizations Annual CE Forum PAO Development Forum of Firms
Transparency
Forum of Firms Compliance Advisory Panel Public Policy & Regulation Grants and Other Income
Global Network International Accountancy Small and Medium
Standard-Setting Education Practices
Boards Professional Accountants in Transnational Auditors
Business Technology
OUR GOVERNANCE
O U R G O V E RN AN CE
Our governance structure plays an integral role in how IFAC creates value for stakeholders. Specifically, Nominating Committee
IFAC BOARD REGIONAL BREAKDOWN:
the Council and Board ensure that IFAC operates effectively and meets strategic objectives. The IFAC Nominating Committee makes
recommendations to the Board, Council and
Public Interest Oversight Board (PIOB) regarding Africa-Middle East: ............................3
Council ●● Reviewing and providing input on IFAC’s Board Subcommittees and Advisory Groups
Monitoring Group response paper, Perspectives the composition of IFAC’s committees and Asia: ............................................................5
IFAC governance ultimately rests with the IFAC The Board is assisted by several subcommittees.
on the Way Forward for Strengthening the the standard-setting boards. The Nominating
Council, which comprises one representative from These include the Audit, Governance, and Australasia-Oceana: ..........................1
Oversight and Operations of the International Committee strives to find the best fit for
each IFAC member. The Council held its annual Audit & Assurance and Ethics Standards Boards; Planning and Finance Committees. In addition, Europe: .....................................................7
each vacancy while taking into consideration
meeting in November 2018 in Sydney, Australia, and Board members also participate in the Public professional background, technical skills, Latin America-Caribbean: ............2
alongside the World Congress of Accountants. At Developing new strategic initiatives, including Policy and Regulation and Technology Advisory
●●
contributions to the profession, as well as
this meeting, Council approved all agenda items, the proposed new direction for advancing Groups. North America: ....................................4
geography, gender, and professional balance.
including Strategic Plan, 2019-2020: Build Trust. accountancy education at the global level and
Inspire Confidence. It also elected a new president the new fit-for-purpose approach to quality As incoming CEO, Kevin Dancey implemented
membership. Key Stakeholder Engagement
and deputy president, In-Ki Joo of South Korea a new Management Advisory Team, which
is a flatter and more inclusive management Stakeholder satisfaction drives our strategy and
and Alan Johnson of the United Kingdom and Board Effectiveness
10 work plan and activities, including key stakeholder 11
Portugal, respectively. structure to ensure more effective and integrated
The Board has an extensive self-assessment engagement landing points. One of these is the
operations and advise on vital matters.
and feedback process. Effectiveness is assessed annual stakeholder satisfaction survey to evaluate
Board annually for improvement opportunities, and our performance. This survey measures our
The IFAC Board takes all practicable steps a survey is completed after every meeting to stakeholders’ views of IFAC’s performance in key
to achieve IFAC’s mission by governing and identify areas for improvement. VOLUNTEERS ON THE IFAC areas: acting as the global voice of the profession
164
overseeing operations. It is composed of the BOARD AND COMMITTEES:
and supporting small- and medium-sized practices
president and not more than 22 additional Important value-creation activities to enhance the
(SMPs) and professional accountants in business.
members, including the deputy president. Board’s effectiveness in 2018 included:
A guiding principle for Board membership IFAC also convenes an annual Chief Executives’
●● Holding a cultural awareness retreat focused on
is to ensure diverse representation on the improving work in diverse cross-cultural teams, Forum, which creates an important opportunity
Board, including gender diversity, regional including facilitating better communication IFAC BOARD BY GENDER: to discuss trends, challenges, and implications
representation, and professional backgrounds. and collaboration; with our largest member organizations. In 2018,
Following a recommendation from the search
committee, the Board appointed the new CEO,
●● Implementing an expanded orientation
program for new Board members; and 65% male our 16th annual Forum, “Inspire Confidence in a
World of Rapid Change,” garnered more than 75
35% female
●● Continuing a mentoring process that matches participants, including senior executives from 50
Kevin Dancey, with an initial focus on: new and experienced Board members. member organizations. Forum participants also
●● Overseeing the development of our new had the opportunity to provide input into the
strategic plan; development our 2019-2020 strategy.
What We Do
Driving Our Key Outcomes
●● Strong and sustainable PAOs developing and enhancing the quality of professional accountants
●● A global exchange of knowledge and ideas
12 13
●● Effective policy and regulatory decisions aligning the profession with the needs of the public
●● Enhanced recognition of and confidence in professional accountants, and their relevance, reputation, and value
●● Enhanced awareness of and dialogue on public interest and professional issues among key constituencies
●● Reliable, comparable and timely organizational reporting
●● Confidence in high-quality international standards that are adopted and implemented across the globeSUPPORTING INTERNATIONAL STANDARDS
S U PPO R T I N G I N T E RN AT I O N AL S TAN DARDS
Strategic Objective: Support the development of international standards, and influence their overseen by the Public Interest Committee, which ●● IFAC’s Perspectives on the Way Forward for
ensures that the public interest is served by the Strengthening the Oversight and Operations of
adoption and implementatio the International Audit & Assurance and Ethics
VOLUNTEERS ON THE
137
IPSASB. STANDARD-SETTING BOARDS:
Standards Boards (August 2018).
Key Achievements Overall Performance High-quality international standards, adopted
Monitoring Group Review The Monitoring Group’s next consultation paper is
●● Provided more than US $21.5 million in fully- IFAC met or exceeded all our Key Performance and implemented in jurisdictions around the expected in the second quarter of 2019. We look
Since the inception of the four standard-setting
costed funding and approximately 31 staff Indicators (KPIs) for this objective in 2018. world, are indispensable to the global economy. forward to continuing to actively engage with
boards, we have maintained a dialogue with
members. They underpin the quality, consistency, and
regulators and other key stakeholders on the Monitoring Group and other key stakeholders
Received an overall rating of 8.1 out of 10 GENDER BREAKDOWN FOR ALL
●● 2017: more than US $18.8 million in fully- ●●
comparability of financial information in the public to progress this important dialogue and arrive at
from the standard-setting board chairs for the potential enhancements to the governance STANDARD-SETTING BOARDS:
costed funding and approximately 25 and private sectors; improve financial stability and
68% male
services delivered (2017 rating: 7.7). model under which the standards are developed. the best public interest outcome for the global
staff members. promote capital flows; and play an essential role in
During 2018, and particularly in response to the economy.
Successfully recruited for all vacant staff ●● Satisfactorily fulfilled the Member Compliance
●●
small- and medium-sized entities’ (SMEs’) growth
positions, including the IAASB technical Program Strategy and Work Plan to support Monitoring Group Consultation: Strengthening
and financing.
32% female
director position. and improve standards adoption and the Governance and Oversight of the International The Interim Nominating Committee
implementation. Audit-Related Standard-Setting Boards in the In 2017, the Monitoring Group asked for IFAC’s
●● Supported contract extensions for: Supporting the International Standard-
14 The Board approved the model for advancing Public Interest (November 2017), IFAC encouraged cooperation in establishing an Interim Nominating 15
Setting Boards
●●
●● IAASB Chairman Prof. Arnold Schilder
accountancy education. the Monitoring Group to engage in broad- Committee (INC) to make a recommendation
through June 30, 2019; The multi-stakeholder approach to developing
●● The Board is satisfied with actions based, open, and collaborative dialogue with for the next IAASB chair. The Interim Nominating
●● IESBA Chairman Dr. Stavros Thomadakis high-quality standards includes financial
recommended and support provided by key stakeholders to arrive at a proposal that Committee is comprised of five members and two
through December 31, 2019; and and operational support from IFAC for four
management for the Monitoring Group Review. observers representing IFAC and the PIOB, with
IPSASB Chair Ian Carruthers through would have the comprehensive support of all key DAYS OF MEETINGS SUPPORTED FOR THE
●●
international standard-setting boards:
December 31, 2021. IFAC is committed to an international standard- stakeholders. IFAC serving as Secretariat and an independent STANDARD-SETTING BOARDS AND THEIR
48
setting system that is credible, inclusive, International Auditing and Assurance Standards chair appointed by the Monitoring Group. CONSULTATIVE ADVISORY GROUPS:
●● Served as secretariat for the Interim ●●
Board (IAASB); The global accountancy profession’s contribution
Nominating Committee to recruit a new IAASB legitimate, and produces standards that are
to this dialogue is reflected in: After an extensive search and rigorous selection
chair. relevant, innovative, and responsive to meet the ●● International Ethics Standards Board for
Accountants (IESBA); process, the recommended candidate was
●● Supported the appointment of the IAESB Chair challenges of the future. The multi-stakeholder, ●● IFAC’s Response to the Monitoring Group approved by IFAC and the PIOB in October 2018.
Anne-Marie Vitale. shared public-private governance model under ●● International Accounting Education Standards Consultation (February 2018);
Boards (IAESB); and Unfortunately, the candidate formally withdrew
●● Published the International Public Sector which the standards are developed ensures ●● The IFAC-commissioned Gibson Dunn from the role for personal reasons. The INC was
Financial Accountability Index: 2018 Status that the public interest remains the focus of ●● International Public Sector Accounting report, Reactions to the Monitoring Group
Report launched in Sydney, Australia at the Standards Board (IPSASB). reinstated in November 2018 with the same
standard setting, takes place without political or Consultation Paper Regarding International
World Congress of Accountants. Audit-Related Standard Setting: A Summary of composition, terms of reference, and process to
commercial interference, and includes checks and The IAASB, IESBA, and IAESB are overseen by the
Public Comments (April 2018); and conduct a new search.
balances to ensure that no one stakeholder has PIOB, which ensures that standards are set in a
undue influence. transparent manner under stringent due process
that emphasizes the public interest. The IPSASB isSU P P O R TI NG I N T E R N AT I O N A L S TA N DA R D S S U PPO R T I N G I N T E RN AT I O N AL S TAN DARDS
Professor Arnold Schilder’s term as IAASB Chair ●● Producing implementation guidance and International Code of Ethics for Professional Advancing Accountancy Education in During 2018, IFAC collaborated with the
was extended to June 30, 2019 to allow for the resources; Accountants. the Public Interest Association of Accounting Technicians of the UK to
INC to complete its work and recommend a new ●● Developing the profession’s capacity to Advancing accountancy education is integral to develop a An Illustrative Competency Framework
implement standards; International Public Sector Accounting Standards
candidate. The new IAASB chair is expected to our vision that the accountancy profession be for Accounting Technicians. The publication,
Advocating for the value and importance of adoption and implementation—especially
start on July 1, 2019. ●● recognized as vital to organizations, markets, and issued in early 2019, is a resource for PAOs
the standards; and building public sector accountancy capacity—has
economies. Competent and credible professional developing an AT designation as an additional
Adoption and Implementation Managing high-quality translations and been a crucial focus for us. A key achievement
●●
accountants, committed to lifelong learning, pathway into the accountancy profession. This
reproductions to encourage wide-spread use in 2018 was the publication of The International
We use a holistic approach to achieve global underpin this vision. dialogue will continue throughout 2019, and
while maintaining appropriate protections and Public Sector Financial Accountability Index:
convergence to high-quality international serve as an example for a new, collaborative way
copyrights. 2018 Status Report by IFAC and the Chartered To remain relevant in an environment of
standards forward.
Powered by information from our member Institute of Public Finance and Accountancy, with rapid change, professional accountants must
that further trust, transparency, and economic organizations, we launched a bespoke campaign the Zurich University of Applied Science as a increasingly demonstrate competencies beyond
growth and equality. In addition to supporting in 2018 to support International Standards: knowledge partner. The Index details public sector today’s typically-recognized accountancy
the standard-setting boards, we also enhance 2017 Global Status Report, the first-ever global financial reporting quality around the world and competencies. In response, IFAC and the
adoption and implementation of the standards by: snapshot. The report indicated, among other assesses international adoption progress, and International Accounting Education Standards
16 17
positive findings, that nearly 80% of jurisdictions future outlook. Board announced a new way forward in 2018.
●● Including standards adoption in our member
worldwide have adopted the International
organization requirements; To progress the new way forward, in 2018 we:
Standards on Auditing for mandatory audits.
●● Monitoring and reporting on global adoption
In addition, more than 60% have adopted the Established the International Accountancy
status; ●●
Education Transition Advisory Group to help
shape the future model;
Held a multi-stakeholder webinar to provide
Adoption in Jurisdictions
●●
* an overview of the future model and answer
questions; and
79% adopted International Standards on Auditing for all mandatory audits (2009 or more recent standards ●● Conducted a stakeholder survey of the
proposed model’s elements, which
61% fully adopted the Code of Ethics for Professional Accountants (2009 or more recent Code) demonstrated strong support for the proposed
future model.
55% made strides in the adoption of International Public Sector Accounting Standards
The IAESB, and its PIOB oversight, will cease in 2019
20% full adopted all International Education Standards for all professional accountants when the IAESB has completed its work plan. The
future model will become effective on July 1, 2019.
*Adoption rates across 80 of the 130 jurisdictions in which IFAC member organizations operate.SPEAKING WITH A GLOBAL VOICE
S PE AK I N G WI T H A G LO BAL V O I CE
Strategic Objective: Be recognized as the leading voice for the global accountancy profession campaign, IFAC achieved headline-grabbing Tax conversations provided insight into what drives
coverage in major financial media, including the their passion for accountancy. In total, IFAC was
We also published an article by Executive Director
Financial Times, Bloomberg and The Wall Street mentioned in more than 18 World Congress-
Russell Guthrie in Forbes on international tax
Journal, as well as local-language media coverage relates media articles across seven different
Key Achievements ●● Hosted the second annual Global Thought leadership
across 15 jurisdictions. A robust social media
issues that was published following the US tax-
countries, with articles in English, French and
Communicators Forum for senior filing deadline. The article called for increased
Audit quality and reform
Advocated against restricting firms to audit- communicators from our member campaign and toolkit for member organizations Vietnamese.
●●
global cooperation from policy makers for
only in POLITICO. organizations. IFAC participated in the international conversation further extended the report’s messaging to key
effective taxation in the globalized, digital Edelman
Determined the global cost of regulatory on significant audit reform in 2018. The article audiences—resulting in our most impactful
●●
Overall Performance economy.
fragmentation, adding a decisive proof-point in POLITICO by IFAC CEO Kevin Dancey added leadership launch to date. In 2018, we deepened our successful partnership
to our messaging on the importance of Performance for this objective is based on three accountancy’s perspective on this issue to the Global outreach and engagement with public relations agency Edelman. Taking
collaboration in policy setting. KPIs. global discussion and resulted in further media Talent
full advantage of Edelman’s international reach,
World Congress of Accountants:
●● Issued the profession’s policy ●● Positive stakeholder satisfaction inquiries and more than 20 media mentions To better understand the next generation’s career IFAC gained traction with media across the
recommendations to the G20. around the world. aspirations, we commissioned a survey examining In November, we leveraged the 2018 World globe, resulting in positive and impactful media
●● 2018: speaking out, 7.92/10; improving
Increased international, non-English the career preferences of Generation Z’ers across Congress of Accountants in Sydney, Australia coverage across Africa, Asia, Latin America, Europe
the reputation of the profession, 7.7/10;
●●
language, and top-tier media coverage of the Fighting fraud, corruption and money laundering to amplify the profession’s priorities, including
18 advocating effectively, 7.95/10 the globe. The results showed that this important and North America. We were also able to take 19
accountancy profession. throughout the agenda, keynote speeches, panels
●● 2017: speaking out, 8.0/10; improving Before the G20 Summit in Buenos Aires, IFAC cohort is largely inclined to pursue a career in advantage of Edelman’s advice on digital and
●● Grew our social media audiences across all the reputation of the profession, 7.9/10; supported the accountancy profession in accountancy, which they see as providing a stable and sessions. We also used the opportunity to social media strategy in 2018, resulting in a 30%
channels. advocating effectively, 7.8/10 connect with the more than 5,000 attendees
Argentina/Latin America as a prominent voice in and fruitful career path. year-on-year increase in followers across IFAC
●● Successfully co-hosted the World Congress ●● Significantly contribute to three events focused the fight against corruption. We signed an anti- in our customized exhibition booth. These social media channels.
of Accountants in Sydney, Australia with on identified platforms, and receive overall corruption compact with the International Bar
Chartered Accountants Australia and New positive feedback.
Zealand and CPA Australia. Association, hosted an anti-corruption event with
●● Fulfill the 2018 Communications Plan, the B20, and launched a survey on corruption and
●● Announced the IFAC Board’s selection of developed by IFAC and Edelman, and approved
Mumbai, India as the host city for the 2022 perception of the profession. We also issued the
by the IFAC Board, and achieve all identified
World Congress of Accountants during an profession’s ten actionable recommendations for
KPIs.
interview with Good Evening India, which has G20 countries to advance the global economy.
400 million viewers. IFAC proactively represents and advocates for the
●● Launched multiple country-specific surveys to accountancy profession at the global level. We Regulatory fragmentation
capture public perception of the accountancy strive to drive conversations that raise awareness Working with Business at OECD, we issued a report
profession, gain insights into key issues of the profession’s crucial roles in building strong highlighting the US $780 billion cost of regulatory
affecting the business and financial landscape, organizations, financial markets, and economies. divergence, adding a decisive proof-point to our
and drive media coverage. Through consultative and collaborative processes messaging on the importance of collaboration
●● Leveraged leadership travel and events to build with our member organizations and other key in policy setting. Using the report’s findings as
media engagement and relationships. stakeholders, we strive to reflect the global the basis of a broad-based communications
profession‘s views in our output and content.SP EAK I NG W I T H A G LO B A L V O I C E S PE AK I N G WI T H A G LO BAL V O I CE
Media outreach expertise across countries in Africa. This yielded a 2018 Social Media Snapshot International Highlights & Leadership
boom in international and top-tier coverage and
IFAC Media
Our strategic focus on building credibility in India survey:
international markets, speaking into topical issues
positioned IFAC as a go-to source on public sector Communications Platform
Total
Followers
Increase
Since 2017
32 articles in English & Hindi
Plan KPIs
●●
in different geographies, and taking advantage of
executive travel resulted in a notable increase in
reform and anti-corruption measures in Africa.
23.3K 13% ●● Total readership over 3.7 million Coverage
2018 Communicators Forum Develop thought leadership In 2018, IFAC achieved 50% more media
global earned media coverage.
●●
Argentina survey:
16.5K 30% coverage globally and 10x as much top-
Building on the success of its first Global and digital campaigns 54 total media mentions
●●
tier coverage (compared to 2017).
In 2018, our 2018 media program also included Communicators Forum, IFAC hosted the second ●● Drive media interviews and ●● 20 Spanish-language articles
11K 29%
287
country-specific surveys to drive coverage. These annual Forum, drawing senior communicators place original content TOTAL IFAC MEDIA MENTIONS:
●● A mention in Reuters
surveys, conducted in India in late 2017 and from our member organizations around the
●● Increase international and 92.6 million total social impressions
Argentina in mid-2018, captured the public’s world. Bringing these communicators together ●●
Following an Institute of Chartered Accountants
perception of the accountancy profession, as well enables us to both engage with our members’
non-English language media 13K social media engagements with IFAC posts
●●
of Nigeria conferences, IFAC President Rachel
as insight into key issues affecting the business key messaging and to offer new perspectives and coverage ●● 8.2K social posts mentioning IFAC Grimes’ remarks were cited alongside Nigerian
and financial landscape. learnings. Focused on the power of storytelling, Develop messaging and engage 6.7K unique shares of IFAC social media President Muhammadu Buhari’s in 28 articles,
205
●● ●●
EARNED MEDIA PLACEMENTS:
20 the 2018 Forum leveraged our relationship with on standard-setting issues, many of which were in Nigeria’s top-tier media. 21
Our ongoing outreach connected to IFAC Edelman and drew on discusses at the IFAC Chief including on the Monitoring
leadership travel and event participation also Executives Forum. The event helps us extend the Group proposals.
continued to pay dividends in 2018. IFAC also voice of the profession in partnership with our 2018 Media Coverage by Region 2018 Media Coverage by Topic
leveraged events in Zimbabwe, Nigeria, and member organizations, and creates a two-way
80
South Africa to build media relationships and TOP-TIER MEDIA HITS:
opportunity for amplification and collaboration.
position our organization’s and leadership’s
Media Mentions
4
EXECUTIVE INTERVIEWS:
2018 International Media Mentions 2018 Total Media Mentions 2018 Top-Tier Media Mentions
300 300 287 100 United States of America 14% Audit reform 7%
250
245 250 238 79 80 Canada 1% Capacity Building 8%
Europe 20% Education 7%
200 179
75
64 Australia / New Zealand 3% Ethics 6%
200
163 East Asia 8% General 14%
150
102
150 128 50
100 87 34 South Asia 14% Governance 9%
100 Africa 34% Role of the Accountant 20%
25
50 Latin / South America 6% Standard Setting 18%
50
Technology 5%
0 0
Q1 2018 Q2 2018 Q3 2018 Q4 2018
0
Q1 2018 Q2 2018 Q3 2018 Q4 2018 WCOA 6%
Q1 2018 Q2 2018 Q3 2018 Q4 2018GROWING MEMBERSHIP
G R O WI N G M E M BE RS HI P
Strategic Objective: Grow membership and improve quality Developing Strong Future Members methodology. Crucial collaboration with partners
The Program also steers the membership and stakeholders, such as the international Knowledge Sharing
standard-setting boards and the World Bank, will
admission process and pipeline. IFAC begins on Gateway
working with developing PAOs well in advance also continue.
Key Achievements Overall Performance ●● The Bahamas Institute of Chartered
●● Following Council’s approval, admitted one IFAC met or exceeded all our targets for this Our Membership of their formal application. This allows the
PAO to begin to follow our requirements and Knowledge Sharing
Accountants explained how updated
national legislation, which it worked
new member: the Association of Accountants
of the Republic of Latvia.
objective in 2018, which called for:
Requirements use our benchmarks and resources to lay a Knowledge sharing supports quality across the with the government to develop and
Helping members enhance quality assurance strong foundation in preparation of future IFAC entire profession, and provides our member advance, opened new opportunities
●● Completed 175+ member and associate ●●
profiles, including international standards review systems, investigative and disciplinary Adoption and implementation membership. When our Council votes to admit organizations the opportunity to amplify their ●● The Cayman Islands Institute of
adoption status and IFAC requirements. mechanisms, and their promotion of adoption of high-quality international success stories. It was a primary focus in 2018 and Professional Accountants reflected on
new members and associates, they can see years
and implementation of international standards; the importance of adapting governance
●● Worked directly with nine members standards—and the development of continual progress—demonstrating the PAO’s remains one for 2019. arrangements to drive performance
and
and associates to support and resolve quality and readiness to join our network.
Achieving membership growth. of competent and credible In 2018, we leveraged knowledge and experience
●● The Colegio de Contadores Públicos
specific, targeted challenges using CARE— ●●
Autorizados de Panamá shared its
communication, assistance, review, and professionals to implement them— In 2018, we began implementing a new approach from our member organizations, volunteers and success story on how to unity to
IFAC membership is a globally-recognized
enforcement. are fundamental to fostering to driving quality membership. The new structure staff by increasing the member organization- improve quality assurance reviews,
22 hallmark of a high-quality PAOs. IFAC membership 23
Working with IFAC member organizations and oversight are fit-for-purpose and include driven content published on the Global which was also published in Spanish
reliable, comparable, and timely
●●
makes it clear to public and private sector
and volunteers, published seven articles transitioning the Compliance Advisory Panel to Knowledge Gateway. These articles provide our ●● The Institute of Chartered Accountants
on the Global Knowledge Gateway sharing organizations locally, regionally, and internationally organizational reporting—the of Barbados detailed how changing
a membership committee during 2019. This will member organizations the opportunity to share
experience and knowledge with the broader that the PAO has credibility, sustainability, and underpinnings of trust in markets, its corporate governance drives
allow the committee a more targeted focus on how they approached and resolved issues, their organizational performance
IFAC community. standing.
investment, and economic growth. admission and enforcement matters while staff adoption and implementation progress stories,
●● Developed five regional priority plans as part of ●● The Institute of Chartered Accountants
Our membership requirements include continues to implement the Compliance Program. and technical expertise. Using this approach, of India told its success story of helping
our active pipeline management to reach the
international standards adoption and The Program will continue to be overseen by the member organizations’ reach and influence were the Indian railroads get on the right
KPI target of nine new members and associates
extended to Gateway’s 300,000+ annual web track for accrual accounting
by the end of 2020. implementation, as well as quality assurance and IFAC Board, without the additional oversight of the
Global Assessments visitors and its 30,000+ subscribers. ●● The Lesotho Institute of Accountants
●● Following outreach, engagement, and investigation and discipline systems. PIOB.
detailed its journey to a localized
development support, received nine The Compliance Program’s two principal outputs professional accounting qualification
applications in late 2018 for the 2019 admission Member Requirements The Program will continue to be fully transparent,
are PAO-produced status updates and IFAC- ●● The Society of Certified Accountants
cycle. & Improving Quality produced full assessments of progress, challenges
including publishing all compliance information
and Auditors of Kosovo provided advice
Staff and volunteers carried out targeted IFAC member organizations all participate in our online. We will also continue to develop and on how improving PAO governance can
●●
and further opportunities for collaboration and
engagement with PAOs interested in Member Compliance Program. The Program helps improve the Program, such as enhancing increase global engagement
progressing with IFAC membership in 21 member organizations understand and follow
partnerships. These updates and assessments
the risk-based approach to developing and New Member: Thank you to all our member organizations
power IFAC’s information on the global status
jurisdictions covering 6 regions. monitoring action plans for well-developed
clear guidelines and benchmarks on how to of international standards adoption and Association of Accountants of the that shared their stories on Gateway and
ensure high-quality performance and champion member organizations. As well, we will continue with the IFAC global network.
implementation. Republic of Latvia
international standards. It also guides continual to develop our self-assessment tools and reporting
improvements in development areas.DEVELOP THE ACCOUNTANCY PROFESSION
Strategic Objective: Strengthen the global accountancy profession by providing development and Without strong, sustainable PAOs there wouldn’t Education
be accountants able to facilitate economic activity,
PAO support development, and decision making by the public
Education and pathways for professional
accountants was also a key IFAC focus area in
and private sectors. Building PAO capacity is 2018 and will continue to be in 2019. During
Key Achievements by DFID and the Global Fund and organized in PAOs are the cornerstone of a strong accountancy
partnership with the Pan African Federation of central to strengthening the profession. 2018, IFAC collaborated with the Association of
●● Participated in or organized 19 outreach profession. They are the engines that produce the
engagement and stakeholder events, including Accountants. competent professionals who create reliable Accounting Technicians of the UK to develop
five regional events, to raise awareness of the Received an “A+” rating on IFAC’s fourth annual Capacity Building a An Illustrative Competency Framework for
●●
financial and non-financial information that
value and need to develop the accountancy DFID review. supports economic development. Our PAO Capacity Building Program leverages Accounting Technicians. The publication, issued
profession. ●● Developed the Note on Good Practices for an extensive network and seeks out mutually- in early 2019, is a resource for PAOs developing
●● Provided technical assistance to 16 member Collaboration—World Bank Group and IFAC, PAOs educate and certify accountancy beneficial partnerships, realizing opportunities for an AT designation as an additional pathway
organizations, whose support needs were providing a basis for collaboration for country- professionals according to international technical collaboration and optimization of scarce human into the accountancy profession. This dialogue
identified thought regional priorities. and region-specific client-facing capacity and ethical standards and best practices; improve and financial resource. Projects frequently use will continue throughout 2019 (see supporting
Leveraged the expertise of the PAO building activities.
●●
the quality of financial reporting through the a PAO-to-PAO model to share experiences and international standards for more information on
Development Committee to publish new ●● Held a two-day PAO Capacity Building Partners’ review, investigation, and discipline; and act as common solutions and generate partnerships the future path for international accountancy
content to help PAOs become future ready. Knowledge-Sharing Roundtable to share
24 a resource to government, regulators, and other that extend beyond the lifetime of the initial education). 25
●● Sustained seven ongoing UK Department for experiences, explore lessons learned, and
identify opportunities to enhance the Capacity stakeholders. engagement.
International Development (DFID)-funded PAO
capacity building projects in: Ghana, Kyrgyz Building Program and PAO’s approach.
Beginning in 2014, the Program included a grant
Republic, Myanmar, Nigeria, Rwanda, Uganda, An Illustrative Competency
Overall Performance from DFID, which has funded projects in eight
and Zimbabwe, as well as supporting the Pan- Framework for Accounting
We met or exceeded all our KPIs for this objective countries across Africa and Asia.
African Federation of Accountants. Technicians
in 2018, which called for:
●● Approved a regional project to develop an PAO Development Beyond DFID-funded projects, IFAC establishes
online learning platform for a public sector
qualification by the African Organization of
●● Successful execution of the IFAC-Board Committee Expertise regional priorities to support current and
approved Capacity Building Program and potential member organizations. Staff and
English-speaking Supreme Audit Institutions Evolving Expectations for Accountants
Donor Engagement work plans; ●●
volunteers engage directly with the PAO,
on behalf of the African Professionalization Means Changing Needs for Education &
Initiative. ●● DFID annual review rating not below “A”; and including on-the-ground and virtual technical
Training
Hosted a three-day conference, Developing ●● Effective management of the DFID relationship assistance. These support efforts are aided by
●●
●● What Does a Future-Ready PAO Look
Accountancy Capacity in Fragile and Conflict- and grant. the IFAC PAO Development Committee, whose
Like?
affected States, in Johannesburg, South Africa. Competent accountants behaving with integrity members are often the lead technical advisor
●● Building a Future-Ready PAO
The event facilitated a dialogue between provide society with reliable financial information working with each PAO.
the accountancy profession, Accountants
that underpins economic development, and
General, Auditors General, and development
ultimately contributes to reduced poverty and
partners to design a fit-for-purpose strategy
to build accountancy. The event was funded shared prosperity.SUPPORTING KEY CONSTITUENCIES
S U PPO R T I N G K E Y CO N S T I T U E N CI E S
Strategic Objective: Support high-quality practices by professional accountants and ensure key the G20 meeting, and with IFAC’s Public Policy and Knowledge sharing and resource
Regulation Advisory Group. development Key Resources
constituencies are considered in standard setting In collaboration with PAOs, committee members,
Advocating for these constituencies in the Professional Accountants in Business
partners, and other stakeholders, we developed
Key Achievements Overall Performance standard-setting process includes ongoing Focusing on CFOs and finance functions
thought leadership, guidance, toolkits, articles,
●● Held two CFO roundtables in Malaysia and Delivered value to member organizations by Outreach Activities interaction with the standard-setting boards,
and webinars in 2018 to achieve our objective.
in the digital and multi-capitals age,
and resulting skills implications, IFAC
Singapore with the support of the Malaysian supporting the accountants in business and small- such as:
Institute of Accountants and the Institute of ●● ISCA professional accountants in developed:
and medium-sized practices constituencies. Professional Accountants in Business
Singapore Chartered Accountants (ISCA). business conference in Singapore (450+ ●● Feedback on proposed standards through ●● A Vision for the Finance Professional and the
●● Conducted a workshop with 16 PAOs to ●● Accountants in business: 7.61/10 in 2018, delegates) more than 16 formal and informal responses to Engaging accountants in business presents a Finance Function;
help them better support and engage with 7.6/10 in 2017 ●● Kampuchea Institute of Certified Public proposals and meeting papers (19 in 2017); practical challenge since they are dispersed across ●● Perspectives on the Finance Function
accountants in business and the public sector. Accountants and Auditors-ASEAN Attendance by standard-setting board many organizations and locations, often in small Journey;
●● SMP: 7.72/10 in 2018, 7.8/10 in 2017 ●●
●● Hosted a webinar with more than 25 PAOs to Federation of Accountants Conference members at committee meetings; numbers. Consequently, they often become ●● Identifying the Role of the Finance Function
Professional accountants in business, the public 2018, Digitalization of Accounting in Enterprise Performance Management;
gain insight into PAO needs in relation to SMPs ●● Engaging in conference calls and webinars on disconnected from their member organization. To
sector, and in SMPs make up a significant and
and accountants in business. (Phnom Penh, Cambodia) specific SMP issues; and help PAOs take a strategic and practical approach United, Connected and Aligned: How the
proportion of the accountancy profession. Helping
●●
Advocated for the accountants in business and ●● West Africa Economic and Monetary SMP Committee members participation in Distinct Roles of Internal Audit and the
26 ●● ●● to enhancing relevance for accountants in 27
SMP constituencies in the standard-setting the profession support and enhance its relevance Union International Congress (Dakar, various standard-setting board task forces and Finance Function Drive Good Governance
business, IFAC provided our member organizations
process, includes ongoing interaction with the to these key constituencies, and promoting Senegal) working groups. with a self-assessment evaluation tool to identify
standard-setting boards. awareness of their vital roles as business partners ●● ADC Nationale congress, Brescia, Italy Small- and Medium-sized Practices
Input into standard setting on behalf of these the areas of growth and investment.
●● Produced key resources and materials to and advisors, continues to be strategically ●● 30+ additional events and speaking & segments of the profession also contribute to ●● Guide to Using International Standards
help IFAC member organizations engage and important for IFAC and our member organizations. stakeholder engagement opportunities Small- and Medium-sized Practices on Auditing of Small- and Medium-sized
IFAC’s support for standard setting more broadly.
support their membership. Entities, 4th Edition, updated for projects
During 2018, IFAC prepared promotional and on auditor reporting, disclosures, auditor
●● Published 110+ original articles and videos on Global Insights and Advocacy responsibilities relating to other information,
the Global Knowledge Gateway. communications materials to counter a lack of
Using our international convening power, IFAC and using the work of internal auditors
awareness of the range of resources, tools and
●● Attracted more than 316,000 unique visitors brought together accountants in business, SMPs, awareness of the value of these segments of the ●● IFAC Global SMP Survey, which focused on
(295,000 in 2017), totaling more than 1 million guidance available for SMPs. IFAC also worked practice transformation and shared more
PAOs, and other stakeholders in London, New York, profession; and, importantly, generate actionable
visitors since its 2014 launch. closer with member organizations to increase than 6,000 survey responses from 150
and Singapore through committee meetings. recommendations for IFAC member organizations countries
●● Grew Gateway’s newsletter subscriptions to local impact.
These events facilitated high-quality interaction, on discussed issues. ●● Guide to Practice Management for
more than 30,000 (29,000 in 2017). Small- and Medium-sized Practices, 4th
engagement and collaboration, and provided
●● Created a dedicated technology content area Policy and Standards Edition, which includes a new module on
the opportunity to identify and debate trends,
to highlight emerging technology trends, leveraging technology
opportunities and challenges. They also increased IFAC support for these key constituencies
including blockchain, artificial intelligence, ●● The International Code of Ethics for
data analytics, cybersecurity, and ethics in a engagement and collaboration with IFAC includes specific input into policy and standards Professional Accountants: Key Areas of Focus
member organizations and others in our network; in 2018, including participation on the B20 SME for SMEs and SMPs
digital age.
provided opportunities to advocate and promote Development Task Force in Argentina ahead ofYou can also read
