Definition
The International Federation of Accountants (IFAC) is a global organization established in 1977 aimed at fostering a reputable and consistently high-standard accountancy profession worldwide. Although IFAC does not itself issue accounting standards, it supports four independent standard-setting bodies:
- International Accounting Education Standards Board (IAESB)
- International Auditing and Assurance Standards Board (IAASB)
- International Ethics Standards Board for Accountants (IESBA)
- International Public Sector Accounting Standards Board (IPSASB)
The activities of IFAC and these boards are overseen by the Public Interest Oversight Board.
Examples
-
Enhanced Ethics in Auditing: IFAC, through the IESBA, provides guidelines ensuring auditors follow stringent ethical standards, reducing incidences of conflict of interest and increasing public trust in financial statements.
-
Public Sector Accountability: Through the IPSASB, IFAC aids in developing accounting standards for public sector entities, improving the transparency and accountability of government finances worldwide.
-
Global Education Standards: By supporting the IAESB, IFAC helps set benchmarks for accounting education, ensuring consistency in the professional training of accountants globally.
Frequently Asked Questions (FAQs)
What does IFAC stand for, and what is its purpose?
IFAC stands for International Federation of Accountants. Its purpose is to develop a global accountancy profession with high-quality, harmonized standards.
Does IFAC issue accounting standards?
No, IFAC itself does not issue accounting standards but supports four independent standard-setting bodies that develop such standards.
How many member organizations does IFAC have?
IFAC has 175 member organizations spread across 130 countries.
What are the independent standard-setting bodies supported by IFAC?
The four independent standard-setting bodies are:
- International Accounting Education Standards Board (IAESB)
- International Auditing and Assurance Standards Board (IAASB)
- International Ethics Standards Board for Accountants (IESBA)
- International Public Sector Accounting Standards Board (IPSASB)
Who oversees the activities of IFAC and its boards?
The Public Interest Oversight Board oversees the activities of IFAC and its associated boards.
Related Terms and Definitions
- International Accounting Education Standards Board (IAESB): A board that develops standards and guidance for accounting education.
- International Auditing and Assurance Standards Board (IAASB): A board that sets International Standards on Auditing (ISAs) and assurance engagements.
- International Ethics Standards Board for Accountants (IESBA): A board that sets ethical standards and a code of conduct for accountants worldwide.
- International Public Sector Accounting Standards Board (IPSASB): A board that develops accounting standards for public sector entities.
- Public Interest Oversight Board (PIOB): An oversight body that ensures the activities of IFAC and its standard-setting boards serve the public interest.
- Harmonized Standards: Uniform standards intended to align accounting practices across different jurisdictions globally.
Online References
Suggested Books for Further Studies
- “International Accounting and Multinational Enterprises” by Lee H. Radebaugh, Sidney J. Gray, and Ervin L. Black
- “Principles of International Financial Accounting” by Kathryn Cearns and Colin Richard W. Baxter Willoughby
- “International Auditing: Practical Resource Guide” by John S. Rizvi
- “Ethics and the Profession of Accounting” by Charles Culhane
- “Public Sector Accounting” by Rowan Jones and Maurice Pendlebury
Accounting Basics: “International Federation of Accountants” Fundamentals Quiz
Thank you for exploring the International Federation of Accountants with our comprehensive article and tackling our engaging quiz questions. Continue advancing your knowledge in the global accountancy field!
