IFAC has issued a call for action to the Group of 20 (G20) for stronger governance across public and private sectors and a stable regulatory environment in order to enhance global economic stability.
IFAC’s call for action was issued ahead of the G20 meeting in China on 4 and 5 September. Highlighting the importance of the accountancy profession for the global economy in the proposal's forward, IFAC president, Olivia Kirtley, and IFAC CEO, Fayezul Choudhury, said that organisations and individuals must be empowered by strong governance in the business and public sectors, underpinned by a coherent public policy and regulatory environment.
To these ends, IFAC made eight recommendations to the G20, around two main themes.
First, to strengthen governance for trust and integrity in business and public sector through facilitating and encourage the adoption of IPSAS, requiring the Financial Stability Board to encompass the public sector and promoting Integrated Reporting.
Second to promote a cooperative, consistent, and smart global regulatory environment through a push for IFRS and ISA adoption globally, cooperation on tax and establishing a permanent G20 secretariat.
“The global economic recovery is uneven, and social and political destabilization risks remain high in many parts of the world. To fortify the recovery, citizens and markets urgently need to see greater transparency across all organizations, which will help restore trust in the institutions that help underpin the world’s financial markets,” Choudhury said.
The G-20 has new opportunities to create an environment of sustainable, inclusive growth that benefits the world’s citizens, he continued. “IFAC has consistently urged policy consensus and on-going cooperation between government, business, and the regulatory community. On behalf of the global profession, we renew that call today and ask the G-20 to put trust and transparency at the heart of the world’s economy.”
IFAC’s full recommendations to the G20 can be accessed here: Trust and integrity