Common international public sector accounting standards are critical to enhancing the quality of government financial reporting so International Federation of Accountants (IFAC)recommended to the September G-20 summit that the Leaders should back global adoption of public sector standards.
Individual investors deserve better quality financial information--top executives from the International Federation of Accountants (IFAC) told reporters at a briefing session at the National Press Club.
"Why should individual investors care about global standards?" asks Robert Bunting, IFAC President, asserting that standards level the playing field--so that the kind of information individuals receive about an investment in one part of the world is as reliable as what they receive in another. He explains that his organization's 157 member bodies in 123 countries continue to work toward implementing international standards in auditing, public and private sector accounting and ethics.
Ian Ball, IFAC's Chief Executive Officer, adds that common international public sector accounting standards (as set by IFAC's independent International Public Sector Accounting Standards Board [IPSASB]) are also critical to enhancing the quality of government financial reporting. This was why IFAC recommended to the G-20's summit in Pittsburgh in September that the Leaders should back global adoption of public sector standards, says Ball. "It's not just making decisions to invest in government securities where this makes a difference. To the ‘man-on-the-street,' public sector standards deliver information about a government's use of taxpayer funds," he adds.
Another issue Mr. Bunting addressed in the briefing is the importance of small and medium enterprises (SMEs) as the engine of the global economy--the primary source of new jobs, innovation and growth. Financial regulation should not place unreasonable obstacles in the path of SME – such regulation can stifle their growth.
© IFAC - International Federation of Accountants
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