IFAC Global Survey Recognizes Profession's Role in Contributing to Economic Growth and Highlights Need for More Accounting Talent; World Accountancy Week Begins

(New York/December 3, 2007) In recognition of "World Accountancy Week," the International Federation of Accountants (IFAC) has released the results of its first annual Global Leadership Survey, which highlights issues the profession will be addressing in the coming year, national and regional perspectives on economic growth, and the profession's role in contributing to that growth.

Worldwide leaders of professional accountancy organizations believe that a strong accountancy profession plays a key role in economic development globally and nationally and that an important focus in 2008 will be maintaining the profession's good reputation, according to survey results. The IFAC survey also shows that in the coming year global accountancy leaders will focus on attracting new accounting talent to their ranks, particularly in regions such as sub-Saharan Africa, the Middle East, North Africa, and North America, where the most pressing staff shortages exist.

"Maintaining a strong reputation is critical to attracting and retaining talented accountancy professionals," emphasizes IFAC President Fermín del Valle. "In particular, investor confidence in the profession is vital to the profession's ability to contribute to the optimal functioning of capital markets and, consequently, to economic development."

 Key findings of the survey include the following:

• Convergence to a single set of both international accounting and international auditing standards is very important to a country's economic growth and development;
• The limited supply of qualified accounting professionals is having a negative effect on the growth of some national economies;
• Applying new accounting standards is the most important issue faced by professional accountants working in business, followed by adopting good practice in internal control and risk management;
• Auditor liability remains a significant national issue; and
• Effectively supporting small and medium entities (SMEs) is an important issue for the global profession and will have an impact on economic development.

With respect to public sector issues, leaders of accountancy bodies in countries that are not applying International Public Sector Accounting Standards (IPSASs) resoundingly believe that if their governments did adopt these standards, the result would be increased in-country economic growth and development. They also indicated that applying IPSASs would enhance public sector accountability in their jurisdictions.

"It is important that governments be held to the same high standards as entities in the private sector," points out IFAC Chief Executive Officer Ian Ball. "Governments that demonstrate a commitment to sound and transparent financial management and financial reporting will build confidence among their citizens that they are effectively managing resources."

As for the future of their national economies, despite the sub-prime loan crisis, most leaders expressed optimism for 2008. This was attributed to the availability of human capital, the growth of SMEs, and the availability of financial capital. Potential threats to economic growth included a lack of investor confidence in capital markets, corruption, and high energy costs.

A total of 143 Presidents and Chief Executives of 115 IFAC member bodies and associates in 91 countries, as well as six regional accountancy bodies, participated in this IFAC survey, conducted between October and November 2007. A list of organizations that participated in the survey is attached. A summary of survey findings along with responses to the full survey are also available.

World Accountancy Week, which was organized as part of IFAC's 30th anniversary activities, runs from December 2-8, 2007.

Founded in 1977, IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 158 members and associates in 123 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. The organization, through its independent standard-setting boards, sets international ethics, auditing and assurance, education, and public sector accounting standards. IFAC also issues guidance to encourage high quality performance by professional accountants in business.