IFAC: Global accountancy leaders identify major themes for 2013

05 March 2013

The IFAC released the results of its 2012 IFAC Global Leadership Survey of the Accountancy Profession. The survey elicited respondents' opinions regarding perceptions of the accountancy profession and the most significant issues facing global accountancy in 2013.

Of the 22 issues that were presented for consideration, respondents identified five top concerns:

1. Needs of SMPs and SMEs;
2. Reputation and credibility of the profession;
3. Issues related to the EU draft legislation;
4. Public sector financial management and sovereign debt issues; and
5. The difficult global financial climate.

The two issues chosen most often as the top concern were:

1. Issues related to the EU draft legislation; and
2. Reputation and credibility of the profession.

There were no significant differences between the overall results and the results for the sub-groups. However, Australia-Oceania included 'Corporate governance' and the 'Changing role of professional accountancy organisations' among their top issues; Latin America and the Caribbean included 'Integrated reporting and sustainability'; and North America included 'Increased regulation'.

These results are comparable to last year’s survey, when the issues chosen most as top five concerns were: Reputation and credibility of the profession; Needs of SMPs and SMEs; The difficult global financial climate; Issues related to the EU draft legislation; and Public sector financial management and sovereign debt issues.

The largest number of respondents said that the IFRSs are the most important standards for global adoption, implementation and enforcement. This was followed by:

• International Standards on Auditing (ISAs);
• IESBA Code of Ethics for Professional Accountants (Code of Ethics);
• International Education Standards (IESs); and
• International Public Sector Accounting Standards (IPSASs).

When analysed in terms of a weighted score (a calculation that looks at the number of times a set of standards was chosen multiplied by its ranking) the order remains similar, with IESs and IPSASs changing places at the end of the list of five. These results were substantially the same last year.

The results were similar for each of the sub-groups, with two interesting observations:

• respondents from G20 countries ranked the Code of Ethics slightly higher; it tied for second with ISAs (in terms of number of times chosen as most important as well as weighted score); and
• respondents from developing countries ranked the Code of Ethics second, followed by the ISAs; IESs came in fourth, and IPSASs were last.

On a regional basis, Africa-Middle East and Latin American & Caribbean ranked the Code of Ethics above ISAs; Australia-Oceania had the Code of Ethics and ISAs tied for second place. Australia-Oceania, Europe, and North America ranked IESs last, after IPSASs.

“The sovereign debt crisis and the current financial climate have contributed greatly to the changing role of the accountancy profession”, said IFAC Chief Executive Officer Fayez Choudhury. “Professional accountants are now more visible, and the profile and responsibility of the profession will only continue to grow. Similar to last year, respondents continue to express their view that IFAC should seek to maintain and improve the public’s perceived views of the accountancy profession; reputation and credibility of the global profession was ranked as one of the most significant issues for 2013.”

Press release

IFAC-survey

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