22 May 2012

IFAC approves of the Pan African Federation of Accountants' decision to adopt international standards in accounting and auditing

Ian Ball, CEO of IFAC, praised PAFA for its recent decision to adopt international standards in accounting and auditing, calling it "an important benchmark in underscoring the value of accountancy and the accountancy profession to governments and to business on the African continent".

PAFA was launched in May 2011 and consists of 39 professional accountancy organisations from 34 African nations. Its General Assembly took the action at the inaugural meeting held May 4 in Tunis, Tunisia, resolving to adopt:

• International Standards on Auditing (ISAs) developed by the IAASB;
• International Public Sector Accounting Standards (IPSASs) developed by the IPSASB;
• International Education Standards (IESs) developed by the IAESB;
• International Financial Reporting Standards (IFRSs) developed by the IASB;
• International Financial Reporting Standard for Small and Medium Enterprises (IFRS for SMEs) developed by the IASB; and
• Code of Ethics for Professional Accountants developed by the IESBA.

“ISAs provide the framework against which the auditor examines a company’s financial statements and judges whether they can be relied upon by investors, capital market participants, and policymakers”, Ball said. “The adoption of IPSASs, along with international standards on education and ethics, is particularly important in Africa, and so this resolution by PAFA is an important milestone. A sound financial infrastructure—in the form of high-quality, recognised standards in auditing, ethics, public sector accounting, and related regulation—is the only way that sustainable economic development is truly achievable as Africa seeks a larger role in the global economy.”

PAFA’s resolution reflects strong support for IFAC’s Statements of Membership Obligations (SMOs), which form the basis of the IFAC Member Body Compliance Programme. SMOs serve as a framework for credible and high-quality professional accountancy organisations focused on serving the public interest. PAFA’s resolution underscores the SMO requirements for IFAC members and associates to adopt and support implementation of international standards and maintain adequate enforcement mechanisms to ensure the professional behavior of their individual members.

The SMOs are issued under the IFAC Board’s authority, and the Compliance Advisory Panel (CAP), together with IFAC Compliance staff, is responsible for reviewing their continuing relevance and sufficiency.

Press release

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