The International Federation of Accountants (IFAC)
The International Federation of Accountants (IFAC) is a global organization that plays a leading role in promoting high-quality standards for the international accounting profession. The organizations members are responsible for setting standards related to auditing and assurance, ethics, public sector accounting, and financial management that serve the public interest.
Founded in 1977, IFAC is the professional organization for accounting firms, standards setters, governments, and other organizations operating in the international field. The federation is composed of individual and organizational members in more than 170 countries, representing the estimated 3 million accountants in public practice, industry, government, and education.
The organizations mission is to serve the public interest by strengthening the international accounting profession and contributing to the development of strong, sustainable global economies. This mission is achieved through a variety of activities, which include developing international standards, providing professional guidance and support, advocating for the important role of the accounting profession, and offering educational and career development opportunities.
The purpose of IFAC is to coordinate the activities of the global accounting profession and to serve the public interest. The organizations mission is to strengthen the international accounting profession and contribute to the development of strong, sustainable economies worldwide. IFACs key objectives can be summarized as follows:
• Establishing ethical standards for the profession
• Establishing international financial reporting standards
• Establishing auditing and assurance standards
• Enhancing the portability of knowledge and expertise
• Advocating for the important role of professional accountants
IFAC works to promote a coordinated approach to international accounting standards. It focuses on the effectiveness of governance and financial accountability in the public, private, and not-for-profit sectors. This type of collaboration is intended to reduce any conflicts of interest and to promote better understanding among global economies. It also works to promote the adoption of high-quality accounting and auditing standards.
The organizations members develop and adopt various standards, among them the IFAC Code of Ethics for Professional Accountants, the International Standard on Auditing, and the International Public Sector Accounting Standards. All of these standards exist to protect the interests of the public and other stakeholders. The codes and standards form the core of the international public practice of accounting and auditing.
IFAC works closely with other international organizations such as the International Organization of Securities Commissions (IOSCO) and the International Monetary Fund (IMF). It also works with national organizations to ensure that international standards and practices are consistent across member countries.
Furthermore, IFAC is responsible for accrediting the education and training providers that offer the Chartered Accountant (CA) designation. This global designation is recognized and respected by employers. It represents a commitment to professional excellence and ethical behavior.
In addition, IFAC works with other accountancy bodies such as the Institute of Chartered Accountants in England and Wales (ICAEW), the Chartered Institute of Management Accountants (CIMA), and the American Institute of CPAs (AICPA) in order to promote international standards.
Lastly, IFAC works to increase the knowledge and expertise of professional accountants. The organization organizes a range of global professional conferences, webinars, and other events, to share best practice from around the world and encourage the advocacy of the global accounting profession.
IFAC is playing a vital role in shaping the global landscape for the international accounting profession. It has been instrumental in developing international standards and promoting cooperation in the accounting profession. By providing this coordination and collaboration, IFAC is helping to create a more competitive, efficient, and reliable accounting profession that serves the public interest by promoting high-quality standards worldwide.
