The International Federation of Accountants (IFAC), the global organization for the accountancy profession dedicated to serving the public interest, has submitted eight recommendations to support global economic growth and resilience for consideration at the forthcoming G-20 Leader’s Summit in Brisbane, Australia, November 15-16.
"We have proposed to the G-20’s leaders eight effective, practical recommendations focused on protecting and serving the global public interest, and which if adopted would significantly enhance global economic stability,” says Fayez Choudhury, IFAC Chief Executive.
The IFAC classified each recommendation within one of three categories: global consistency for sound financial regulation; financial management, reporting, transparency, and accountability by governments; and effective taxation systems.
The detailed recommendations are aimed squarely at regaining momentum toward globally consistent regulation and adoption of high-quality international financial reporting, auditing, and auditor independence standards and requirements, improving both public and private sector transparency, and reducing taxation opacity.
“We have seen too many times throughout history how flawed numbers, and the decisions they impact, can lead to the unravelling of global economic stability," says Choudhury.
The most recent financial crisis generated much global interest in finally addressing the need for internationally consistent, appropriate regulation to help avert future crises. That momentum, Choudhury claims, has dissipated and needs to be regained.
Choudhury adds that unilateral government action is creating more divergence, which does not augur well for a coordinated global response to the next crisis.
“If adopted, our recommendations would serve the public interest by placing integrity—in recognizing, measuring, processing, and reporting financial transactions—at the heart of the numbers relied upon by decision-makers to maintain economic performance and social cohesion," says Choudhury.
Choudhury notes that the accountancy profession’s skills and experience are essential to advancing economic stability, strengthening financial systems and architecture, and promoting accountability and longer-term sustainability and growth.