Yesterday, Today and Tomorrow: 30th Anniversary of IFAC
Fermín del Valle, President
International Federation of Accountants
Association of Chartered and Certified Accountants International Assembly Dinner
London, United Kingdom – November 22, 2007
Good evening. It’s a privilege to join you at this dinner in honor of IFAC’s 30th anniversary. It
is a time in which we celebrate not only IFAC’s achievements, but also those of its member
organizations and volunteers who have contributed so much to IFAC’s short, but rich history.
As a founding member of IFAC, ACCA has demonstrated during these 30 years its shared
commitment with IFAC to developing the accountancy profession and to promoting quality
performance by accountants worldwide.
ACCA has been an integral part of IFAC’s history and it has been, and remains, a leader in
assisting aspiring and new accountants in developing the competencies necessary to serve the
increasing demands of the global marketplace.
I would like to thank Allen Blewitt for inviting me to join you today to look ahead at how IFAC
and ACCA can continue to work together for the benefit of the accountancy profession and the
public that we serve.
It is particularly pleasing for me to be here with you this evening. ACCA is not just a prestigious
organization. It is an organization with a special spirit, which is what makes it successful. It is an
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organization composed of talented and committed individuals who are always close to the people
they serve.
I have met many people from ACCA around the world these past few years. I have always found
them to have the same predisposition to collaborate for the benefit of the accounting profession
and through it, to serve the public interest. I cannot mention everyone, but I would like to point
out three who represent this group: Giussepe (Pino) Messina, who always gave me his support
and friendship, from the moment I began to work in IFAC and before; David Leonard who has
been working with dedication and commitment during recent years as a member of the IFAC
Board; and Helen Brandt who has been working as a technical advisor to the members of the
IFAC Board and who has always contributed positively in various IFAC projects.
I believe that in order to consider our future, we must learn from our past. As we look at our past,
IFAC can say with genuine pride that it has been a pioneer in foreseeing the need to work with a
global perspective. We did this before many even began to think about these issues. Our
predecessors had the correct vision. They were ahead of their time in anticipating the future.
They made the right decisions and they acted on them.
It has been that vision and that determination that today permits IFAC to be who we are: a
unique, global accountancy organization that represents a great force, a respected authority and a
valued institution.
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We should not overlook this very important part of our past. IFAC was one of the first
organizations to work to develop international standards and to urge that we face crucial matters
of the profession with a global mindset.
Today, we continue offering the world an example of what it is possible to accomplish. And we
do this, recognizing well the contributions of time, talent and expertise made by our members
and some 300 volunteers, including those from ACCA.
The themes we have identified in our strategic plan reflect the intended strategic direction for
IFAC.
Three of the strategic themes refer to what we plan to do, and the other two refer to how we plan
to achieve the first three.
We know that what we want is:

Be recognized as the international standard setter in the areas of auditing and assurance,
education, ethics and governmental financial reporting;

The sustainability of the profession; and

Be the international voice of the accountancy profession.
We also know that in order to achieve this it is necessary to:

Achieve greater value for the public through enhancing collaborative efforts; and

Continue to enhance IFAC´s governance.
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We can say today that IFAC has two large areas of priority activities: first, are the standardsetting activities, and second is the development of the profession around the world.
The first activity is channeled through the four independent standard-setting boards that issue
international standards of auditing and assurance, of education, and of ethics, and international
accounting standards for the public sector.
The second activity, related to development, fundamentally consists of promoting the
establishment of professional accountancy organizations in all countries of the world and
encouraging all bodies, the existing and the new, to work towards complying with the Statements
of Membership Obligations (SMOs). IFAC has been working in this direction since 2004
through the Compliance Program. This program is crucial to demonstrating the profession’s
commitment to quality and to contributing to the sustainability of the profession.
As IFAC members and associates seek to meet the requirements in the SMOs, they will very
much need the help of other, more established bodies, such as ACCA. Collaboration such as this
and a commitment to a shared strategy and shared goals are keys to the future progress of the
profession.
ACCA has been strongly contributing to the success of IFAC in these priority activities. Looking
towards the future, IFAC faces the following challenges:
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First, it should respond to the growing pressures and demands that are presented in relation to
these two priority activity areas: standard setting and development. Secondly, in order to
consolidate its position as the single global accountancy organization, IFAC needs to include the
entire spectrum of our profession when it defines their activities. To fulfill our mission and serve
the public interest through strengthening the worldwide accountancy profession, we should pay
attention to the three big sectors that make up our profession: the public practice in transnational
audit firms, the public practice in SMPs and the accountants in business that work within the
organizations, in the private and in the public sector. Simultaneously, for each of these three
groups, it is necessary to consider the wide range of accountant specializations: audit, financial
reporting, tax, internal audit, IT, corporate finance, insolvency, and outsourcing, among others.
It is clear that the limitations in available resources obligate us to be prudent. It is true that these
initiatives should be a focus of IFAC itself, but it is also true that if we want to be the global
organization of all accountants, we should begin to work on those matters that require attention
at an international level and that are important for accountants that work in the different
specializations in any of the three groups already mentioned.
This places IFAC in a very particular moment in its history. Just as we demonstrated 30 years
ago, an audacious and determined vision is required. And just as we experienced 30 years ago,
once again irreplaceable support from organizations such as the ACCA is required.
I have often expressed my belief that the future of the accountancy profession lies in two main
elements: its ability to change, evolve and adapt to market demands, including technological
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demands and its commitment to high values and ethical behavior. Both matters, for their part, are
linked with education. And if there is a word that can identify ACCA, I believe it is this one:
education.
I have also said numerous times that if we do not see education as a priority matter, then we are
committing a grave mistake.
Like our forefathers, we must not only have vision, we must have the willingness to embrace
change and to take actions that will make a difference. I believe that this means we must be
innovative and flexible – words I know that are not usually associated with being an accountant.
But it is precisely this fact that makes it so important to emphasize these capacities when
educating new generations of accountants.
The same occurs in the field of ethics. We must ask ourselves: What are we doing to promote
values to accounting students and to new accountants? How are we preparing them to make the
right decisions in the future? Certainly, IFAC’s Code of Ethics for Professional Accountants,
which applies to professional accountants worldwide, provides critical direction. However, we
need to ensure that that guidance is instilled through education and, fundamentally through
example.
ACCA, with its offices and centers in 80 countries, is ideally positioned to be a leader in this area
and I congratulate you on the work you have already done. You are already helping many
accountants to pursue the right path.
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Lastly, when we educate we must not be afraid to speak out against corruption and we must back
up our words with action. Corruption at any level – individual, corporate and governmental – can
undermine companies and countries, making victims out of those who are already suffering.
As accountants, all of us here have a role to play in fighting corruption.
All social corruption is the consequence of a corrupt heart. Corruption always originates in the
heart of man, and it can only be fought effectively in forming the conscience of the individual.
Many times the corrupt do not realize that they are corrupt. The same occurs with bad breath: it
is very difficult for someone with bad breath to detect whether or not they have it. It is up to
others who sense it to tell the individual.
Accountants, through our different roles, are in a privileged place to identify corrupt acts in
economic activities.
We cannot ask the accountant to convert into a social vigilante and carry the burden of that
responsibility. But, we can ask him or her to abstain from associating with any corrupt activity,
on any level, in any way. This is in itself an enormous contribution the accountant can make.
Certainly, this is not a minor contribution.
From my remarks today, I hope I have made clear what I truly believe: that by aligning our goals
and strategies, by complementing each other’s strengths, and by working in collaboration, we
can not only strengthen the profession, but, more importantly, we can strengthen society and
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make the world a better place. I urge you to keep this focus so that 30 years from today, we can
celebrate not only how we have helped the profession, but how we have improved the world.
Thank you.
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