International Federation of Accountants
Transitioning to One World in Accounting
Education
Robert Bunting, IFAC President
The Higher Education Accounting Forum
April 26, 2009
Global Economic Crisis
Global Economic Crisis
 Demonstrates depth of international
interdependencies (i.e., G20 Summit)
 Highlights importance of finding international
solutions
 Underscores need for one set of global
standards across the financial system
 Reinforces need for high ethical standards and
stronger corporate governance
 Places greater pressure on public institutions
IFAC and the Financial Crisis
IFAC addresses the crisis by:
 Reemphasizing and restating the urgency of
convergence
 Expediting development of standards and guidance
on key issues, i.e., going concern, fair value, financial
instruments, and corporate governance
 Providing global resources for implementation and
compliance monitoring
 Supporting OECD corporate governance principles
 Speaking with a global voice to international
regulators, standard setters, and others
What IFAC Does
 Sets international standards for:
– Auditing
– Ethics
– Accounting Education
– Public Sector Financial Reporting
 Supports adoption and implementation of all global
standards
 Speaks for the global auditing and accounting
profession
 Liaises with regulators & other standard setters
The IFAC Family
 157 members and associates in 122 countries
and jurisdictions
 2.5 million accountants in all segments of the
profession:
– public practice
– education
– government service
– industry and commerce
 Regional accountancy bodies
 Global Networks of Audit Firms (21)
Globalization
Shaping the Accountancy Profession
 Credentials becoming a global stamp of quality
 International marketing by accountancy bodies,
like the AICPA
 Standards are overwhelmingly global
 Accelerating pace at which globalization will
impact accounting and auditing in universities
 Academic programs
 Business offices
How IFAC Can Help NACUBO
 Vehicle for NACUBO access/influence on
international issues
 Academic access to standard setting
 Provides corporate governance and ethical
guidance
 Offers sustainability guidance
 Facilitates research and information exchange
among academics
 Addresses risk management, public sector
performance, and other relevant issues
Why International Standards Matter
U.S.
International
GASB
IPSASB
FASAB
IPSASB
FASB
IASB
AICPA
ASB
IAASB
GAO
INTOSAI
“Yellow Book”
IFAC Standards
Who uses auditing standards (ISAs)?
 Large firms
 More than 100 countries
 Officially the basis for ASB standards
Where ISAs are indirectly used:
 Yellow Book drawn from ISAs to some degree
(via INTOSAI)
 PCAOB collaboration
IFAC Standards
Who uses IPSASs?
 Governments
 Not-for-profit entities
 International organizations, such as OECD,
UN, NATO, and IFAC
 The World Bank also supports
International Standards
Operation Impact
 Financial reporting rules are converging, though
slower in the public and non-profit sectors than
in the private, public-interest entity arena
 Auditing practices increasingly shaped by ISAs
in all sectors of the economy
 Expansion of college operations across borders
necessitates increasing use of global standards
 Statutory audits for local authorities
 Reporting with IFRS (versions)
International Standards
Academic Impact – Need to Broaden Curriculum
Teaching only
U.S. GAAP
handcuffs
students to U.S.
economy. Must
incorporate ISAs
IPSASs, and
IFRSs in
curriculum.
“Green” Challenge for Universities
 Meeting the demand for growth, including
facilities, materials, energy, etc.
 Dealing with rapid and unprecedented rise in
energy consumption as a result of technology
 Recognizing the complexity of universities,
educational institutions need to have a single
control center to ensure that university-wide
policies and procedures are implemented
effectively and consistently
“Green” Solutions
IFAC Sustainability Framework offers pointers for
accountants and university business officers to
sustainably manage their organizations.
 Need ownership and coordination at the top
 Need to identify clear green and social goals with
stakeholder engagement
 Need to identify broader set of measures of
performance to include environmental and social
issues
 Start with relatively simple energy efficiency and
waste minimization and better procurement
initiatives
“Green” Solutions
Engage All Stakeholders
What does this all mean?
Academic
 Up-skilling/recruitment of staff in international
accounting and auditing
– Accentuates the serious problem of shortage
of accounting PhDs
 Need to “internationalize” curricula and
textbooks
 International Education Standards can help
 Means that you are “future-proofing” your
students
What does this all mean?
Operational
 Financial constraints are increasing
– Endowments and income declining
– Funding under pressure
 Need to monitor and desirably influence the
development of standards
 Need for a single set of high-quality standards (US)
 Competitive role in international credentialing?
Moving Ahead
The time for
study may be
passing quickly.
Thinking globally
must be paired
with acting
globally.
The Future
We are moving
rapidly to “one
world” in
accounting,
auditing, and
corporate
governance.
Observation vs. Mindful Purpose
Is there a role for NACUBO in shaping
global policy?
International Federation of Accountants
www.ifac.org