08 June 2012

IFAC: Global sustainability and growth recommendations for the G20 leaders’ summit

The IFAC presents recommendations for consideration at the G20 Leaders' Summit on June 18-19 2012 in Mexico. These recommendations focus on actions aimed at promoting global sustainability and growth, and are directed towards several of the stated priorities of the Mexican presidency of the G20.

In a letter, the IFAC urged the G20 Leaders at their June 2012 meeting in Los Cabos to focus on global solutions to global issues, to create sustainability and growth.

The letter, which is a follow-up to previous submissions in 2009, 2010, 2011, and earlier in 2012, recommends that the G20 take action directed toward the priorities of the current Mexican Presidency to: achieve economic stabilisation and structural reforms as foundations for growth and employment; strengthen the financial system and foster financial inclusion to promote economic growth; improve the international financial architecture in an interconnected world; and promote sustainable development, green growth, and the fight against climate change. The recommendations include:

• The adoption and implementation, across all jurisdictions, of IFRS; ISAs; and Auditor independence requirements set out in 'The Code of Ethics for Professional Accountants', issued by the International Ethics Standards Board for Accountants (IESBA).
• That the G20 works to support strengthened resourcing and governance arrangements of international regulatory organisations (including standard-setters) that have clearly defined expectations and responsibilities. In this regard, IFAC reiterates its support for shared private sector/public sector arrangements for international standard-setting for financial reporting, auditing and assurance, ethics and accounting education.
• That the G20 supports initiatives leading to greater transparency in the management of public resources, including improving financial reporting practices by governments, developing an international framework of governance for public sector organisations, combating money laundering and terrorist financing, and ensuring that taxation obligations are properly assessed and collected according to the law.
• That the G20 formally signals its support for the work being undertaken by the International Integrated Reporting Council (IIRC) with respect to developing a framework for integrated reporting. The IIRC, in which IFAC participates, is an important initiative and represents a collaboration among a broad cross-section of corporate, investment, accounting, securities, regulatory and academic leaders.
• That governments and regulators adhere to principles of high-quality regulation, especially economic impact assessment, in implementing evidence-based regulatory reform. In particular, they should recognise that regulatory reforms may affect parts of the economy differently; for example, changes targeting large and complex organisations may have unintended consequences when applied to small and medium-sized entities.
• That G20 nations support initiatives aimed at strengthening the accountancy profession in developing and emerging countries. In fulfilling its mission, IFAC contributes to the development of strong professional accountancy organisations and high-quality practices by professional accountants in many ways, including through its relationships with the donor community.

Press release

Letter

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