Delivering Value through Our Global Network - INTEGRATED ANNUAL REVIEW 2018 - IFAC

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Delivering Value through Our Global Network - INTEGRATED ANNUAL REVIEW 2018 - IFAC
Delivering Value
through Our Global Network
INTEGRATED ANNUAL REVIEW 2018
Delivering Value through Our Global Network - INTEGRATED ANNUAL REVIEW 2018 - IFAC
CONTENTS
                                                                                                                 Report to Our Stakeholders.................................................................................................................................. 4
                                                                                                                 Future Ready...................................................................................................................................................................... 5

ABOUT THIS 2018 ANNUAL REVIEW                                                                                    How IFAC Creates Value .......................................................................................................................................... 8
                                                                                                                 Delivering Value through Our Global Network.................................................................................... 8
                                                                                                                 Our Governance...........................................................................................................................................................10
IFAC advocates globally for integrated reporting because it is helps organizations deliver higher-quality
information with real meaning. Information that serves the public interest by telling a clearer value creation   OBJECTIVES
and preservation story to stakeholders, employees, investors and capital markets, and, ultimately, to the        Supporting International Standards............................................................................................................14
communities they serve.
                                                                                                                 Speaking with a Global Voice............................................................................................................................18
IFAC’s 2018 integrated annual review helps us remain accountable to our member organizations and                 Growing Membership.............................................................................................................................................22
stakeholders. It also improves understanding of our strategic objectives and achievements, and their             Develop the Accountancy Profession........................................................................................................24
connection to the overarching key outcomes IFAC—on behalf of our members—seeks to advance.
                                                                                                                 Supporting Key Constituencies.......................................................................................................................26
The review provides information on our financial, human, intellectual, and social and relationship capitals      Our Human and Intellectual Resources....................................................................................................28
alongside how we create value through our governance, strategy, resource deployment, and key activities.
                                                                                                                 APPENDICES
It continues our efforts to work with the integrated reporting principles and concepts IFAC advocates for
globally, as set out in the International Integrated Reporting Council’s Integrated Reporting Framework. As      Financial Highlights...................................................................................................................................................32
part of the journey, the IFAC Board provided directional input and review.                                       Our Global Network..................................................................................................................................................35
                                                                                                                          IFAC Members............................................................................................................................................................35
This review is part of our 2018 reporting suite, which also comprises our Financial Statements for the year
                                                                                                                          Associates ....................................................................................................................................................................37
ended December 31, 2018, available on the IFAC website.
                                                                                                                          Affiliates.........................................................................................................................................................................37
                                                                                                                          Regional Organizations...........................................................................................................................................37
                                                                                                                          Accountancy Groupings........................................................................................................................................37

                                                                                                                 Our Volunteers...............................................................................................................................................................38
                                                                                                                          IFAC Board ...................................................................................................................................................................38
                                                                                                                          IFAC Board Subcommittees..................................................................................................................................39
                                                                                                                          Nominating Committee.........................................................................................................................................39
                                                                                                                          IFAC Committees ......................................................................................................................................................39
Copyright © 2019 by the International Federation of Accountants® (IFAC®).
For copyright, trademark, and permissions information, please see back cover.
Delivering Value through Our Global Network - INTEGRATED ANNUAL REVIEW 2018 - IFAC
REPORT TO OUR STAKEHOLDERS
    From the President and the Chief Executive Officer

    We are living in an era of disruption and opportunity.
                                                                                                                                                 FUTURE READY
    Entirely new technologies, industries, and innovations are emerging frequently and swiftly. Business models and
    needs are evolving. Expectations for accountants and the profession are on the rise.                                                         Scanning the Horizon                                                                   Future generations
                                                                                                                                                                                                                                             Competition is intensifying for talent, especially talent that is increasingly
                                                                                                                                                 Rapidly-changing economic and social trends require the profession and IFAC
    Rapid and continual changes brings both challenge and great opportunity for accountancy.                                                                                                                                                 mobile. Globally, there are also widening gaps between available skills
                                                                                                                                                 to be agile and proactive. IFAC continually assesses global trends and their
                                                                                                                                                                                                                                             and employers’ needs, as well as a greater drive for workforce diversity and
    With their finger on the pulse of changing needs, our member organizations and their members are at the                                      impact on accountancy, including these four paradigm-shifting trends.
    forefront of change. Working together, we can leverage disruption, change, and innovation to expand the                                                                                                                                  inclusion. To compete, the profession must effectively demonstrate and
    profession and direct our future.                                                                                                            Accountancy in the digital age                                                              communicate our relevance and advancement opportunities.

    Collaborating with our member organizations throughout 2018, IFAC further supported our members as they                                           We are in the midst of the fourth industrial revolution in which our              The accountancy profession shares a responsibility to evolve and ensure it is
    deliver a truly global profession of competent, credible, professional accountants equipped to respond to                                         physical, digital, and biological worlds are blurring with unprecedented          fully capable of harnessing change. How quickly can we react to change? How
    changing needs. Accountants who are recognized as essential to strong, sustainable organizations, financial                                       scope and speed. These disruptive changes and new business models                 nimble and agile can we be?
    markets, and economies.                                                                                            Rachel Grimes                  result in a demand for new skills from professional accountants, including
4                                                                                                                      President                      increased efficiencies and innovation.                                            Working with and leveraging the thought leadership of our member                      5
    By focusing on delivering the greatest stakeholder value and channeling our comparative advantages, IFAC
                                                                                                                                                                                                                                        organizations and others within our global network, IFAC proactively addressed
    refined its emphasis on stakeholder satisfaction, while also delivering high-quality content and building the
    structures that will sustain even greater success in the future. We are proud of IFAC’s achievements in 2018 and
                                                                                                                                                 Trust in business, capital markets, and the profession                                 these emerging challenges and opportunities in 2018, including by developing
    excited at what the future holds.                                                                                                                 Public trust in governments and institutions is at an all-time low.               a new strategic plan.
                                                                                                                                                      Simultaneously, the profession faces questions about ethics,
    Top among these achievements was the 2018 World Congress of Accountants in Sydney, Australia, hosted by
    IFAC, Chartered Accountants Australia and New Zealand, and CPA Australia. This pinnacle event for the global                                      professionalism, the adequacy of the standards, and performance in
    accountancy profession attracted more than 5,000 finance and business leaders, policy setters, and accountants                                    relation to those standards. We have the opportunity, and responsibility, to
    and inspired them to take charge of our profession’s future. The conversations begun in Sydney will continue at
    the 2022 World Congress, which will take place Mumbai, India.
                                                                                                                                                      be part of the public conversation about rebuilding trust, including audit
                                                                                                                                                      and corporate governance.
                                                                                                                                                                                                                                             Vision
                                                                                                                                                                                                                                                   A global accountancy profession that is essential to
    We completed our terms as president and CEO in 2018 and gratefully acknowledge the commitment and                                            Multi-capitalism and long-term thinking and reporting                                             strong, sustainable organizations, financial markets, and
    support of the IFAC Board, our member organizations and key stakeholders, and dedicated volunteers and staff.
                                                                                                                                                      Investors and others assessing organizational performance increasingly                       economies.
    Without their tireless efforts, none of IFAC’s many accomplishes would be possible.
                                                                                                                                                      take a broader multi-capital perspective based on value creation. Evolving
                                                                                                                       Fayez Choudhury                business demands require accountants be able to contribute to how value
                                                                                                                                                      creation is managed and reported—in a way that drives both corporate
                                                                                                                                                                                                                                             Purpose
                                                                                                                       Chief Executive Officer
                                                                                                                                                                                                                                                   IFAC, with its member organizations, serves the public
                                                                                                                                                      responsibility and growth. Tomorrow’s successful entities will be strategically
                                                                                                                                                                                                                                                   interest by enhancing the relevance, reputation, and value
                                                                                                                                                      nimble, future ready, and embrace innovation, as will the professional
                                                                                                                                                                                                                                                   of the global accountancy profession.
    Rachel Grimes                           Fayez Choudhury                                                                                           accountants who support them.
    President                               Chief Executive Officer
Delivering Value through Our Global Network - INTEGRATED ANNUAL REVIEW 2018 - IFAC
2019-2020 Strategic Plan                                                               With the Strategic Plan, 2019-2020: Build Trust. Inspire Confidence. as our
                                                                                           roadmap, we will employ our unique comparative advantages to achieve             IFAC’s Unique Comparative Advantages
    With these trends in mind, we crafted a fresh two-year strategic plan in               these outcomes, and greater stakeholder satisfaction. We will also increase
    consultation with our member organizations and key stakeholders. Strategic             global confidence in the accountancy profession’s ability to act independently
                                                                                                                                                                                 Natural Facilitator
    Plan, 2019-2020: Build Trust. Inspire Confidence. identifies our mission-critical      and provide high-quality services in the public interest.
    objectives and resulting strategic actions. It is a clear vision and mission that is                                                                                         IFAC convenes key groupings of professional accountants and professional accountancy organizations on a global level.
    durable beyond the two-year period covered in the plan.                                                                                                                      We identify and debate key issues, opportunities, and challenges relevant to the profession. We actively contribute to
                                                                                                                                                                                 improving organizational reporting by contributing to and promoting the development, adoption, and implementation of
    Our strategic objectives for 2019-2020 are:
                                                                                                                                                                                 high-quality international standards.
    ●●   Contributing to and promoting the development, adoption, and
         implementation of high-quality international standards;
6                                                                                                                                                                                                                                                                                                            7
    ●●   Preparing a future-ready profession; and                                                                                                                                Trusted Intermediary
    ●●   Speaking out as the voice of the global profession.
                                                                                                                                                                                 IFAC strengthens the profession by leveraging its global experience and relationships with key stakeholders, development
    As IFAC is a member organization, successful execution will be underpinned
                                                                                                                                                                                 partners and professional accountancy organizations.
    by a deep focus on stakeholder engagement and leveraging their talents.
    Multi-stakeholder engagement will also be crucial.

    Accomplishing our objectives will require IFAC to:                                                                                                                           Knowledge Gateway
    ●●   Engage with our member organizations, stakeholders, and multilateral                                                                                                    IFAC provides a global forum to share, synthesize, and create knowledge to support professional accountancy organizations
         international institutions;                                                                                                                                             and all accountants in providing high-quality services.
    ●●   Explore opportunities to amplify knowledge and insights, focus on
         thought leadership, and explore research and partnership opportunities;
         and                                                                                                                                                                     Influential Voice
    ●●   Harness our reputation and expertise to support professional accountancy
         organizations (PAOs) at the national and regional level, collaborate on                                                                                                 IFAC represents and advocates, in the public interest, on behalf of the global accountancy profession, and increases
         public policy and regulatory issues, and promote PAOs and the profession                                                                                                awareness of the profession as essential to sustainable organizations, financial markets, and economies.
         to key stakeholders and other influencers.
                                                                                                               Learn more in the 2019-2020
                                                                                                               Strategic Plan
Delivering Value through Our Global Network - INTEGRATED ANNUAL REVIEW 2018 - IFAC
D E L I V E R I N G VA LU E T H R O U G H O U R G LO B A L N E T W O R K
                               IFAC GOVERNANCE                                                    STANDARD-SETTING GOVERNANCE                                                    IFAC KEY SERVICES                     IFAC COMPARATIVE           IFAC KEY OUTPUTS                     KEY OUTCOMES

HOW IFAC
                                                                                                                                                                                                                       ADVANTAGES
                                            Council
                                                                                                           Monitoring Group                                         Oversight    Supporting international              Natural Facilitator        Guidance on international            Strong and sustainable professional accountancy
                                                      Consultation

CREATES                                                   /Advice                           Oversight                                                                            standards                                                        standards                            organizations developing and enhancing the
                                            Board                        Nominating                                                                                                                                    Trusted Intermediary                                            quality of professional accountants
                                                                         Committee                           Public Interest                               Public Interest
                                                                                                            Oversight Board                                 Committee
                                                                                                                                                                                 Accountancy capacity                  Global Knowledge Sharing   Member organizations and             A global exchange of knowledge and ideas

VALUE                          Committees
                               Audit
                                                                           Interim
                                                                         Nominating               Standard-Setting Boards                              Standard-Setting Board
                                                                                                                                                                                 building
                                                                                                                                                                                 Quality & membership
                                                                                                                                                                                                                       Platform
                                                                                                                                                                                                                       Influential Voice
                                                                                                                                                                                                                                                  country profile assessments and
                                                                                                                                                                                                                                                  updated action plans for all
                                                                                                                                                                                                                                                  member organizations
                                                                                                                                                                                                                                                                                       Effective policy and regulatory decisions aligning
                                                                                                                                                                                                                                                                                       the profession with the needs of the public
                                                                         Committee                                                                                               Supporting the profession                                                                             Enhanced recognition of and confidence in
                               Governance                                                         International Audit and Assurance Standards          International Public
                                                                                                                                                                                                                                                  Programs to build PAO capacity       professional accountants, and their relevance,
                                                                                                  Board                                                Sector Accounting
VISION FOR THE                 Planning and Finance
                                                                                                                                                       Standards Board
                                                                                                                                                                                 Global advocacy
                                                                                                                                                                                                                                                  Global Knowledge Gateway and
                                                                                                                                                                                                                                                                                       reputation, and value
                                                                                                  International Ethics Standards Board for
PROFESSION                                                                                        Accountants                                                                                                                                     other thought leadership, tools
                                                                                                                                                                                                                                                                                       Enhanced awareness of and dialogue on public
                                                                                                                                                                                                                                                                                       interest and professional issues among key
                                                                                                  International Accounting Education Standards                                                                                                    and guidance
Essential to Strong,                                                                                                                                                                                                                                                                   constituencies
                                                                                                  Board                                                                                                                                           Programs and materials to
Sustainable Organizations,                                                                                                                                                                                                                                                             Reliable, comparable and timely organizational
Financial Markets, and                                                                                                                                                                                                                            enhance transparency and             reporting
                               IFAC 2018 STRATEGIC OBJECTIVES                                                                                                                                                                                     accountability in the pubic sector   Confidence in high-quality international standards
Economies
                               Support the development of international standards, and influence their adoption and
                                                                                                                                                           Operational and
                                                                                                                                                                                                                                                  Policy positions, opinions, and
                                                                                                                                                                                                                                                                                       that are adopted and implemented                     9
                                                                                                                                                           Funding Support for                                                                                                         across the globe
                               implementation                                                                                                                                                                                                     points of view
                                                                                                                                                           Standard Setting
IFAC PURPOSE                   Be recognized as the leading voice for the global accountancy profession
                               Grow membership and improve quality
IFAC, with its Member                                                                                                                        SHARED RESOURCES
                               Strengthen the global accountancy profession
Organizations, Serves the                                                                                                                    AND INPUTS                          REPORTING
                               Support high-quality practices by professional accountants
Public Interest by Enhancing                                                                                                                 IFAC Staff and Infrastructure
                               Sustain organizational performance
the Relevance, Reputation,                                                                                                                   Support                             KPIs: Defining Success - IFAC Board
and Value of the Global                                                                                                                      Communications        HR            Value to members and stakeholders: Integrated Annual Review
Accountancy Profession         IFAC RESOURCES AND INPUTS                                                                                     Finance               IP
                               Staff                                                                                                         Governance            Operations
VALUES                         Knowledge Group, Management Advisory Team, Quality & Development                                              Funding
Integrity, Expertise, and      Key Stakeholders              Advisory Groups                                                                 Membership Dues
                               Member Organizations          Annual CE Forum                            PAO Development                      Forum of Firms
Transparency
                               Forum of Firms                 Compliance Advisory Panel                 Public Policy & Regulation           Grants and Other Income
                               Global Network                 International Accountancy                 Small and Medium
                               Standard-Setting               Education                                 Practices
                               Boards                         Professional Accountants in               Transnational Auditors
                                                              Business                                  Technology
Delivering Value through Our Global Network - INTEGRATED ANNUAL REVIEW 2018 - IFAC
OUR GOVERNANCE
                                                                                                                                                                                                                                                                                                  O U R G O V E RN AN CE

     Our governance structure plays an integral role in how IFAC creates value for stakeholders. Specifically,                                                        Nominating Committee
                                                                                                                                                                                                                            IFAC BOARD REGIONAL BREAKDOWN:
     the Council and Board ensure that IFAC operates effectively and meets strategic objectives.                                                                      The IFAC Nominating Committee makes
                                                                                                                                                                      recommendations to the Board, Council and
                                                                                                                                                                      Public Interest Oversight Board (PIOB) regarding      Africa-Middle East: ............................3
     Council                                               ●●   Reviewing and providing input on IFAC’s           Board Subcommittees and Advisory Groups
                                                                Monitoring Group response paper, Perspectives                                                         the composition of IFAC’s committees and              Asia: ............................................................5
     IFAC governance ultimately rests with the IFAC                                                               The Board is assisted by several subcommittees.
                                                                on the Way Forward for Strengthening the                                                              the standard-setting boards. The Nominating
     Council, which comprises one representative from                                                             These include the Audit, Governance, and                                                                  Australasia-Oceana: ..........................1
                                                                Oversight and Operations of the International                                                         Committee strives to find the best fit for
     each IFAC member. The Council held its annual              Audit & Assurance and Ethics Standards Boards;    Planning and Finance Committees. In addition,                                                             Europe: .....................................................7
                                                                                                                                                                      each vacancy while taking into consideration
     meeting in November 2018 in Sydney, Australia,             and                                               Board members also participate in the Public        professional background, technical skills,            Latin America-Caribbean: ............2
     alongside the World Congress of Accountants. At            Developing new strategic initiatives, including   Policy and Regulation and Technology Advisory
                                                           ●●
                                                                                                                                                                      contributions to the profession, as well as
     this meeting, Council approved all agenda items,           the proposed new direction for advancing          Groups.                                                                                                   North America: ....................................4
                                                                                                                                                                      geography, gender, and professional balance.
     including Strategic Plan, 2019-2020: Build Trust.          accountancy education at the global level and
     Inspire Confidence. It also elected a new president        the new fit-for-purpose approach to quality       As incoming CEO, Kevin Dancey implemented
                                                                membership.                                                                                           Key Stakeholder Engagement
     and deputy president, In-Ki Joo of South Korea                                                               a new Management Advisory Team, which
                                                                                                                  is a flatter and more inclusive management          Stakeholder satisfaction drives our strategy and
     and Alan Johnson of the United Kingdom and            Board Effectiveness
10                                                                                                                                                                    work plan and activities, including key stakeholder                                                                                                  11
     Portugal, respectively.                                                                                      structure to ensure more effective and integrated
                                                           The Board has an extensive self-assessment                                                                 engagement landing points. One of these is the
                                                                                                                  operations and advise on vital matters.
                                                           and feedback process. Effectiveness is assessed                                                            annual stakeholder satisfaction survey to evaluate
     Board                                                 annually for improvement opportunities, and                                                                our performance. This survey measures our
     The IFAC Board takes all practicable steps            a survey is completed after every meeting to                                                               stakeholders’ views of IFAC’s performance in key
     to achieve IFAC’s mission by governing and            identify areas for improvement.                           VOLUNTEERS ON THE IFAC                           areas: acting as the global voice of the profession

                                                                                                                     164
     overseeing operations. It is composed of the                                                                    BOARD AND COMMITTEES:
                                                                                                                                                                      and supporting small- and medium-sized practices
     president and not more than 22 additional             Important value-creation activities to enhance the
                                                                                                                                                                      (SMPs) and professional accountants in business.
     members, including the deputy president.              Board’s effectiveness in 2018 included:
     A guiding principle for Board membership                                                                                                                         IFAC also convenes an annual Chief Executives’
                                                           ●●   Holding a cultural awareness retreat focused on
     is to ensure diverse representation on the                 improving work in diverse cross-cultural teams,                                                       Forum, which creates an important opportunity
     Board, including gender diversity, regional                including facilitating better communication          IFAC BOARD BY GENDER:                            to discuss trends, challenges, and implications
     representation, and professional backgrounds.              and collaboration;                                                                                    with our largest member organizations. In 2018,

     Following a recommendation from the search
     committee, the Board appointed the new CEO,
                                                           ●●   Implementing an expanded orientation
                                                                program for new Board members; and                   65% male                                         our 16th annual Forum, “Inspire Confidence in a
                                                                                                                                                                      World of Rapid Change,” garnered more than 75

                                                                                                                     35% female
                                                           ●●   Continuing a mentoring process that matches                                                           participants, including senior executives from 50
     Kevin Dancey, with an initial focus on:                    new and experienced Board members.                                                                    member organizations. Forum participants also
     ●●   Overseeing the development of our new                                                                                                                       had the opportunity to provide input into the
          strategic plan;                                                                                                                                             development our 2019-2020 strategy.
Delivering Value through Our Global Network - INTEGRATED ANNUAL REVIEW 2018 - IFAC
What We Do
     Driving Our Key Outcomes
     ●●   Strong and sustainable PAOs developing and enhancing the quality of professional accountants
     ●●   A global exchange of knowledge and ideas
12                                                                                                                         13
     ●●   Effective policy and regulatory decisions aligning the profession with the needs of the public
     ●●   Enhanced recognition of and confidence in professional accountants, and their relevance, reputation, and value
     ●●   Enhanced awareness of and dialogue on public interest and professional issues among key constituencies
     ●●   Reliable, comparable and timely organizational reporting
     ●●   Confidence in high-quality international standards that are adopted and implemented across the globe
SUPPORTING INTERNATIONAL STANDARDS
                                                                                                                                                                                                                                                                                       S U PPO R T I N G I N T E RN AT I O N AL S TAN DARDS

     Strategic Objective: Support the development of international standards, and influence their                                                                           overseen by the Public Interest Committee, which    ●●   IFAC’s Perspectives on the Way Forward for
                                                                                                                                                                            ensures that the public interest is served by the        Strengthening the Oversight and Operations of
     adoption and implementatio                                                                                                                                                                                                      the International Audit & Assurance and Ethics
                                                                                                                                                                                                                                                                                      VOLUNTEERS ON THE

                                                                                                                                                                                                                                                                                      137
                                                                                                                                                                            IPSASB.                                                                                                   STANDARD-SETTING BOARDS:
                                                                                                                                                                                                                                     Standards Boards (August 2018).
     Key Achievements                                          Overall Performance                                   High-quality international standards, adopted
                                                                                                                                                                            Monitoring Group Review                             The Monitoring Group’s next consultation paper is
     ●●   Provided more than US $21.5 million in fully-        IFAC met or exceeded all our Key Performance          and implemented in jurisdictions around the                                                                expected in the second quarter of 2019. We look
                                                                                                                                                                            Since the inception of the four standard-setting
          costed funding and approximately 31 staff            Indicators (KPIs) for this objective in 2018.         world, are indispensable to the global economy.                                                            forward to continuing to actively engage with
                                                                                                                                                                            boards, we have maintained a dialogue with
          members.                                                                                                   They underpin the quality, consistency, and
                                                                                                                                                                            regulators and other key stakeholders on            the Monitoring Group and other key stakeholders
                                                                    Received an overall rating of 8.1 out of 10                                                                                                                                                                       GENDER BREAKDOWN FOR ALL
             ●●   2017: more than US $18.8 million in fully-   ●●
                                                                                                                     comparability of financial information in the public                                                       to progress this important dialogue and arrive at
                                                                    from the standard-setting board chairs for the                                                          potential enhancements to the governance                                                                  STANDARD-SETTING BOARDS:
                  costed funding and approximately 25                                                                and private sectors; improve financial stability and

                                                                                                                                                                                                                                                                                      68% male
                                                                    services delivered (2017 rating: 7.7).                                                                  model under which the standards are developed.      the best public interest outcome for the global
                  staff members.                                                                                     promote capital flows; and play an essential role in
                                                                                                                                                                            During 2018, and particularly in response to the    economy.
          Successfully recruited for all vacant staff          ●●   Satisfactorily fulfilled the Member Compliance
     ●●
                                                                                                                     small- and medium-sized entities’ (SMEs’) growth
          positions, including the IAASB technical                  Program Strategy and Work Plan to support                                                               Monitoring Group Consultation: Strengthening
                                                                                                                     and financing.

                                                                                                                                                                                                                                                                                      32% female
          director position.                                        and improve standards adoption and                                                                      the Governance and Oversight of the International   The Interim Nominating Committee
                                                                    implementation.                                                                                         Audit-Related Standard-Setting Boards in the        In 2017, the Monitoring Group asked for IFAC’s
     ●●   Supported contract extensions for:                                                                         Supporting the International Standard-
14                                                                  The Board approved the model for advancing                                                              Public Interest (November 2017), IFAC encouraged    cooperation in establishing an Interim Nominating                                                             15
                                                                                                                     Setting Boards
                                                               ●●
             ●●   IAASB Chairman Prof. Arnold Schilder
                                                                    accountancy education.                                                                                  the Monitoring Group to engage in broad-            Committee (INC) to make a recommendation
                  through June 30, 2019;                                                                             The multi-stakeholder approach to developing
                                                               ●●   The Board is satisfied with actions                                                                     based, open, and collaborative dialogue with        for the next IAASB chair. The Interim Nominating
             ●●   IESBA Chairman Dr. Stavros Thomadakis                                                              high-quality standards includes financial
                                                                    recommended and support provided by                                                                     key stakeholders to arrive at a proposal that       Committee is comprised of five members and two
                  through December 31, 2019; and                                                                     and operational support from IFAC for four
                                                                    management for the Monitoring Group Review.                                                                                                                 observers representing IFAC and the PIOB, with
                  IPSASB Chair Ian Carruthers through                                                                                                                       would have the comprehensive support of all key                                                           DAYS OF MEETINGS SUPPORTED FOR THE
             ●●
                                                                                                                     international standard-setting boards:
                  December 31, 2021.                           IFAC is committed to an international standard-                                                              stakeholders.                                       IFAC serving as Secretariat and an independent        STANDARD-SETTING BOARDS AND THEIR

                                                                                                                                                                                                                                                                                      48
                                                               setting system that is credible, inclusive,                International Auditing and Assurance Standards                                                        chair appointed by the Monitoring Group.              CONSULTATIVE ADVISORY GROUPS:
     ●●   Served as secretariat for the Interim                                                                      ●●

                                                                                                                          Board (IAASB);                                    The global accountancy profession’s contribution
          Nominating Committee to recruit a new IAASB          legitimate, and produces standards that are
                                                                                                                                                                            to this dialogue is reflected in:                   After an extensive search and rigorous selection
          chair.                                               relevant, innovative, and responsive to meet the      ●●   International Ethics Standards Board for
                                                                                                                          Accountants (IESBA);                                                                                  process, the recommended candidate was
     ●●   Supported the appointment of the IAESB Chair         challenges of the future. The multi-stakeholder,                                                             ●●   IFAC’s Response to the Monitoring Group        approved by IFAC and the PIOB in October 2018.
          Anne-Marie Vitale.                                   shared public-private governance model under          ●●   International Accounting Education Standards           Consultation (February 2018);
                                                                                                                          Boards (IAESB); and                                                                                   Unfortunately, the candidate formally withdrew
     ●●   Published the International Public Sector            which the standards are developed ensures                                                                    ●●   The IFAC-commissioned Gibson Dunn              from the role for personal reasons. The INC was
          Financial Accountability Index: 2018 Status          that the public interest remains the focus of         ●●   International Public Sector Accounting                 report, Reactions to the Monitoring Group
          Report launched in Sydney, Australia at the                                                                     Standards Board (IPSASB).                                                                             reinstated in November 2018 with the same
                                                               standard setting, takes place without political or                                                                Consultation Paper Regarding International
          World Congress of Accountants.                                                                                                                                         Audit-Related Standard Setting: A Summary of   composition, terms of reference, and process to
                                                               commercial interference, and includes checks and      The IAASB, IESBA, and IAESB are overseen by the
                                                                                                                                                                                 Public Comments (April 2018); and              conduct a new search.
                                                               balances to ensure that no one stakeholder has        PIOB, which ensures that standards are set in a
                                                               undue influence.                                      transparent manner under stringent due process
                                                                                                                     that emphasizes the public interest. The IPSASB is
SU P P O R TI NG I N T E R N AT I O N A L S TA N DA R D S                                                                                                                                                                                                                                 S U PPO R T I N G I N T E RN AT I O N AL S TAN DARDS

     Professor Arnold Schilder’s term as IAASB Chair                   ●●   Producing implementation guidance and            International Code of Ethics for Professional        Advancing Accountancy Education in                      During 2018, IFAC collaborated with the
     was extended to June 30, 2019 to allow for the                         resources;                                       Accountants.                                         the Public Interest                                     Association of Accounting Technicians of the UK to
     INC to complete its work and recommend a new                      ●●   Developing the profession’s capacity to                                                               Advancing accountancy education is integral to          develop a An Illustrative Competency Framework
                                                                            implement standards;                             International Public Sector Accounting Standards
     candidate. The new IAASB chair is expected to                                                                                                                                our vision that the accountancy profession be           for Accounting Technicians. The publication,
                                                                            Advocating for the value and importance of       adoption and implementation—especially
     start on July 1, 2019.                                            ●●                                                                                                         recognized as vital to organizations, markets, and      issued in early 2019, is a resource for PAOs
                                                                            the standards; and                               building public sector accountancy capacity—has
                                                                                                                                                                                  economies. Competent and credible professional          developing an AT designation as an additional
     Adoption and Implementation                                            Managing high-quality translations and           been a crucial focus for us. A key achievement
                                                                       ●●
                                                                                                                                                                                  accountants, committed to lifelong learning,            pathway into the accountancy profession. This
                                                                            reproductions to encourage wide-spread use       in 2018 was the publication of The International
     We use a holistic approach to achieve global                                                                                                                                 underpin this vision.                                   dialogue will continue throughout 2019, and
                                                                            while maintaining appropriate protections and    Public Sector Financial Accountability Index:
     convergence to high-quality international                                                                                                                                                                                            serve as an example for a new, collaborative way
                                                                            copyrights.                                      2018 Status Report by IFAC and the Chartered         To remain relevant in an environment of
     standards                                                                                                                                                                                                                            forward.
                                                                       Powered by information from our member                Institute of Public Finance and Accountancy, with    rapid change, professional accountants must
     that further trust, transparency, and economic                    organizations, we launched a bespoke campaign         the Zurich University of Applied Science as a        increasingly demonstrate competencies beyond
     growth and equality. In addition to supporting                    in 2018 to support International Standards:           knowledge partner. The Index details public sector   today’s typically-recognized accountancy
     the standard-setting boards, we also enhance                      2017 Global Status Report, the first-ever global      financial reporting quality around the world and     competencies. In response, IFAC and the
     adoption and implementation of the standards by:                  snapshot. The report indicated, among other           assesses international adoption progress, and        International Accounting Education Standards
16                                                                                                                                                                                                                                                                                                                                                    17
                                                                       positive findings, that nearly 80% of jurisdictions   future outlook.                                      Board announced a new way forward in 2018.
     ●●   Including standards adoption in our member
                                                                       worldwide have adopted the International
          organization requirements;                                                                                                                                              To progress the new way forward, in 2018 we:
                                                                       Standards on Auditing for mandatory audits.
     ●●   Monitoring and reporting on global adoption
                                                                       In addition, more than 60% have adopted the                                                                     Established the International Accountancy
          status;                                                                                                                                                                 ●●

                                                                                                                                                                                       Education Transition Advisory Group to help
                                                                                                                                                                                       shape the future model;
                                                                                                                                                                                       Held a multi-stakeholder webinar to provide
              Adoption in Jurisdictions
                                                                                                                                                                                  ●●

                                                                                     *                                                                                                 an overview of the future model and answer
                                                                                                                                                                                       questions; and
              79% adopted International Standards on Auditing for all mandatory audits (2009 or more recent standards                                                             ●●   Conducted a stakeholder survey of the
                                                                                                                                                                                       proposed model’s elements, which
              61% fully adopted the Code of Ethics for Professional Accountants (2009 or more recent Code)                                                                             demonstrated strong support for the proposed
                                                                                                                                                                                       future model.
              55% made strides in the adoption of International Public Sector Accounting Standards
                                                                                                                                                                                  The IAESB, and its PIOB oversight, will cease in 2019
              20% full adopted all International Education Standards for all professional accountants                                                                             when the IAESB has completed its work plan. The
                                                                                                                                                                                  future model will become effective on July 1, 2019.

     *Adoption rates across 80 of the 130 jurisdictions in which IFAC member organizations operate.
SPEAKING WITH A GLOBAL VOICE
                                                                                                                                                                                                                                                                                                   S PE AK I N G WI T H A G LO BAL V O I CE

     Strategic Objective: Be recognized as the leading voice for the global accountancy profession                                                                         campaign, IFAC achieved headline-grabbing           Tax                                                  conversations provided insight into what drives
                                                                                                                                                                           coverage in major financial media, including the                                                         their passion for accountancy. In total, IFAC was
                                                                                                                                                                                                                               We also published an article by Executive Director
                                                                                                                                                                           Financial Times, Bloomberg and The Wall Street                                                           mentioned in more than 18 World Congress-
                                                                                                                                                                                                                               Russell Guthrie in Forbes on international tax
                                                                                                                                                                           Journal, as well as local-language media coverage                                                        relates media articles across seven different
     Key Achievements                                       ●●   Hosted the second annual Global                     Thought leadership
                                                                                                                                                                           across 15 jurisdictions. A robust social media
                                                                                                                                                                                                                               issues that was published following the US tax-
                                                                                                                                                                                                                                                                                    countries, with articles in English, French and
                                                                 Communicators Forum for senior                                                                                                                                filing deadline. The article called for increased
                                                                                                                     Audit quality and reform
          Advocated against restricting firms to audit-          communicators from our member                                                                             campaign and toolkit for member organizations                                                            Vietnamese.
     ●●
                                                                                                                                                                                                                               global cooperation from policy makers for
          only in POLITICO.                                      organizations.                                      IFAC participated in the international conversation   further extended the report’s messaging to key
                                                                                                                                                                                                                               effective taxation in the globalized, digital        Edelman
          Determined the global cost of regulatory                                                                   on significant audit reform in 2018. The article      audiences—resulting in our most impactful
     ●●
                                                            Overall Performance                                                                                                                                                economy.
          fragmentation, adding a decisive proof-point                                                               in POLITICO by IFAC CEO Kevin Dancey added            leadership launch to date.                                                                               In 2018, we deepened our successful partnership
          to our messaging on the importance of             Performance for this objective is based on three         accountancy’s perspective on this issue to the                                                            Global outreach and engagement                       with public relations agency Edelman. Taking
          collaboration in policy setting.                  KPIs.                                                    global discussion and resulted in further media       Talent
                                                                                                                                                                                                                                                                                    full advantage of Edelman’s international reach,
                                                                                                                                                                                                                               World Congress of Accountants:
     ●●   Issued the profession’s policy                    ●●   Positive stakeholder satisfaction                   inquiries and more than 20 media mentions             To better understand the next generation’s career                                                        IFAC gained traction with media across the
          recommendations to the G20.                                                                                around the world.                                     aspirations, we commissioned a survey examining     In November, we leveraged the 2018 World             globe, resulting in positive and impactful media
                                                                    ●●   2018: speaking out, 7.92/10; improving
          Increased international, non-English                                                                                                                             the career preferences of Generation Z’ers across   Congress of Accountants in Sydney, Australia         coverage across Africa, Asia, Latin America, Europe
                                                                         the reputation of the profession, 7.7/10;
     ●●

          language, and top-tier media coverage of the                                                               Fighting fraud, corruption and money laundering                                                           to amplify the profession’s priorities, including
18                                                                       advocating effectively, 7.95/10                                                                   the globe. The results showed that this important                                                        and North America. We were also able to take              19
          accountancy profession.                                                                                                                                                                                              throughout the agenda, keynote speeches, panels
                                                                    ●●   2017: speaking out, 8.0/10; improving       Before the G20 Summit in Buenos Aires, IFAC           cohort is largely inclined to pursue a career in                                                         advantage of Edelman’s advice on digital and
     ●●   Grew our social media audiences across all                     the reputation of the profession, 7.9/10;   supported the accountancy profession in               accountancy, which they see as providing a stable   and sessions. We also used the opportunity to        social media strategy in 2018, resulting in a 30%
          channels.                                                      advocating effectively, 7.8/10                                                                                                                        connect with the more than 5,000 attendees
                                                                                                                     Argentina/Latin America as a prominent voice in       and fruitful career path.                                                                                year-on-year increase in followers across IFAC
     ●●   Successfully co-hosted the World Congress         ●●   Significantly contribute to three events focused    the fight against corruption. We signed an anti-                                                          in our customized exhibition booth. These            social media channels.
          of Accountants in Sydney, Australia with               on identified platforms, and receive overall        corruption compact with the International Bar
          Chartered Accountants Australia and New                positive feedback.
          Zealand and CPA Australia.                                                                                 Association, hosted an anti-corruption event with
                                                            ●●   Fulfill the 2018 Communications Plan,               the B20, and launched a survey on corruption and
     ●●   Announced the IFAC Board’s selection of                developed by IFAC and Edelman, and approved
          Mumbai, India as the host city for the 2022                                                                perception of the profession. We also issued the
                                                                 by the IFAC Board, and achieve all identified
          World Congress of Accountants during an                                                                    profession’s ten actionable recommendations for
                                                                 KPIs.
          interview with Good Evening India, which has                                                               G20 countries to advance the global economy.
          400 million viewers.                              IFAC proactively represents and advocates for the
     ●●   Launched multiple country-specific surveys to     accountancy profession at the global level. We           Regulatory fragmentation
          capture public perception of the accountancy      strive to drive conversations that raise awareness       Working with Business at OECD, we issued a report
          profession, gain insights into key issues         of the profession’s crucial roles in building strong     highlighting the US $780 billion cost of regulatory
          affecting the business and financial landscape,   organizations, financial markets, and economies.         divergence, adding a decisive proof-point to our
          and drive media coverage.                         Through consultative and collaborative processes         messaging on the importance of collaboration
     ●●   Leveraged leadership travel and events to build   with our member organizations and other key              in policy setting. Using the report’s findings as
          media engagement and relationships.               stakeholders, we strive to reflect the global            the basis of a broad-based communications
                                                            profession‘s views in our output and content.
SP EAK I NG W I T H A G LO B A L V O I C E                                                                                                                                                                                                                                        S PE AK I N G WI T H A G LO BAL V O I CE

     Media outreach                                         expertise across countries in Africa. This yielded a                                                      2018 Social Media Snapshot                            International Highlights & Leadership
                                                            boom in international and top-tier coverage and
                                                                                                                                                                                                                                                                              IFAC Media
     Our strategic focus on building credibility in                                                                                                                                                                         India survey:
     international markets, speaking into topical issues
                                                            positioned IFAC as a go-to source on public sector           Communications                                     Platform
                                                                                                                                                                                               Total
                                                                                                                                                                                             Followers
                                                                                                                                                                                                                Increase
                                                                                                                                                                                                               Since 2017
                                                                                                                                                                                                                                 32 articles in English & Hindi
                                                                                                                         Plan KPIs
                                                                                                                                                                                                                            ●●

     in different geographies, and taking advantage of
     executive travel resulted in a notable increase in
                                                            reform and anti-corruption measures in Africa.
                                                                                                                                                                                               23.3K               13%      ●●   Total readership over 3.7 million            Coverage
                                                            2018 Communicators Forum                                          Develop thought leadership                                                                                                                      In 2018, IFAC achieved 50% more media
     global earned media coverage.
                                                                                                                         ●●
                                                                                                                                                                                                                            Argentina survey:
                                                                                                                                                                                               16.5K               30%                                                        coverage globally and 10x as much top-
                                                            Building on the success of its first Global                       and digital campaigns                                                                              54 total media mentions
                                                                                                                                                                                                                            ●●
                                                                                                                                                                                                                                                                              tier coverage (compared to 2017).
     In 2018, our 2018 media program also included          Communicators Forum, IFAC hosted the second                  ●●   Drive media interviews and                                                                    ●●   20 Spanish-language articles
                                                                                                                                                                                                11K                29%

                                                                                                                                                                                                                                                                              287
     country-specific surveys to drive coverage. These      annual Forum, drawing senior communicators                        place original content                                                                                                                          TOTAL IFAC MEDIA MENTIONS:
                                                                                                                                                                                                                            ●●   A mention in Reuters
     surveys, conducted in India in late 2017 and           from our member organizations around the
                                                                                                                         ●●   Increase international and                   92.6 million total social impressions
     Argentina in mid-2018, captured the public’s           world. Bringing these communicators together                                                              ●●
                                                                                                                                                                                                                            Following an Institute of Chartered Accountants
     perception of the accountancy profession, as well      enables us to both engage with our members’
                                                                                                                              non-English language media                   13K social media engagements with IFAC posts
                                                                                                                                                                      ●●
                                                                                                                                                                                                                            of Nigeria conferences, IFAC President Rachel
     as insight into key issues affecting the business      key messaging and to offer new perspectives and                   coverage                                ●●   8.2K social posts mentioning IFAC                Grimes’ remarks were cited alongside Nigerian
     and financial landscape.                               learnings. Focused on the power of storytelling,                  Develop messaging and engage                 6.7K unique shares of IFAC social media          President Muhammadu Buhari’s in 28 articles,

                                                                                                                                                                                                                                                                              205
                                                                                                                         ●●                                           ●●
                                                                                                                                                                                                                                                                              EARNED MEDIA PLACEMENTS:
20                                                          the 2018 Forum leveraged our relationship with                    on standard-setting issues,                                                                   many of which were in Nigeria’s top-tier media.                                                       21
     Our ongoing outreach connected to IFAC                 Edelman and drew on discusses at the IFAC Chief                   including on the Monitoring
     leadership travel and event participation also         Executives Forum. The event helps us extend the                   Group proposals.
     continued to pay dividends in 2018. IFAC also          voice of the profession in partnership with our                                                           2018 Media Coverage by Region                         2018 Media Coverage by Topic
     leveraged events in Zimbabwe, Nigeria, and             member organizations, and creates a two-way

                                                                                                                                                                                                                                                                              80
     South Africa to build media relationships and                                                                                                                                                                                                                            TOP-TIER MEDIA HITS:
                                                            opportunity for amplification and collaboration.
     position our organization’s and leadership’s

     Media Mentions

                                                                                                                                                                                                                                                                              4
                                                                                                                                                                                                                                                                              EXECUTIVE INTERVIEWS:
     2018 International Media Mentions                      2018 Total Media Mentions                               2018 Top-Tier Media Mentions
     300                                                    300                                    287             100                                                     United States of America        14%                   Audit reform                      7%

     250
                                                  245       250                         238                                                        79        80            Canada                           1%                   Capacity Building                 8%
                                                                                                                                                                           Europe                          20%                   Education                         7%
     200                             179
                                                                                                                   75
                                                                                                                                         64                                Australia / New Zealand          3%                   Ethics                            6%
                                                            200
                                                                              163                                                                                          East Asia                        8%                   General                          14%
     150
                         102
                                                            150    128                                             50

     100      87                                                                                                               34                                          South Asia                      14%                   Governance                        9%
                                                            100                                                                                                            Africa                          34%                   Role of the Accountant           20%
                                                                                                                   25
     50                                                                                                                                                                    Latin / South America            6%                   Standard Setting                 18%
                                                             50
                                                                                                                                                                                                                                 Technology                        5%
      0                                                                                                             0
             Q1 2018     Q2 2018     Q3 2018      Q4 2018
                                                              0
                                                                                                                              Q1 2018   Q2 2018   Q3 2018   Q4 2018                                                              WCOA                              6%
                                                                   Q1 2018   Q2 2018    Q3 2018    Q4 2018
GROWING MEMBERSHIP
                                                                                                                                                                                                                                                                                                               G R O WI N G M E M BE RS HI P

     Strategic Objective: Grow membership and improve quality                                                                                                              Developing Strong Future Members                      methodology. Crucial collaboration with partners
                                                                                                                                                                           The Program also steers the membership                and stakeholders, such as the international           Knowledge Sharing
                                                                                                                                                                                                                                 standard-setting boards and the World Bank, will
                                                                                                                                                                           admission process and pipeline. IFAC begins                                                                 on Gateway
                                                                                                                                                                           working with developing PAOs well in advance          also continue.
     Key Achievements                                         Overall Performance                                                                                                                                                                                                      ●●   The Bahamas Institute of Chartered
     ●●   Following Council’s approval, admitted one          IFAC met or exceeded all our targets for this               Our Membership                                   of their formal application. This allows the
                                                                                                                                                                           PAO to begin to follow our requirements and           Knowledge Sharing
                                                                                                                                                                                                                                                                                            Accountants explained how updated
                                                                                                                                                                                                                                                                                            national legislation, which it worked
          new member: the Association of Accountants
          of the Republic of Latvia.
                                                              objective in 2018, which called for:
                                                                                                                          Requirements                                     use our benchmarks and resources to lay a             Knowledge sharing supports quality across the              with the government to develop and
                                                                   Helping members enhance quality assurance                                                               strong foundation in preparation of future IFAC       entire profession, and provides our member                 advance, opened new opportunities
     ●●   Completed 175+ member and associate                 ●●

          profiles, including international standards              review systems, investigative and disciplinary         Adoption and implementation                      membership. When our Council votes to admit           organizations the opportunity to amplify their        ●●   The Cayman Islands Institute of
          adoption status and IFAC requirements.                   mechanisms, and their promotion of adoption            of high-quality international                                                                          success stories. It was a primary focus in 2018 and        Professional Accountants reflected on
                                                                                                                                                                           new members and associates, they can see years
                                                                   and implementation of international standards;                                                                                                                                                                           the importance of adapting governance
     ●●   Worked directly with nine members                                                                               standards—and the development                    of continual progress—demonstrating the PAO’s         remains one for 2019.                                      arrangements to drive performance
                                                                   and
          and associates to support and resolve                                                                                                                            quality and readiness to join our network.
                                                                   Achieving membership growth.                           of competent and credible                                                                              In 2018, we leveraged knowledge and experience
                                                                                                                                                                                                                                                                                       ●●   The Colegio de Contadores Públicos
          specific, targeted challenges using CARE—           ●●
                                                                                                                                                                                                                                                                                            Autorizados de Panamá shared its
          communication, assistance, review, and                                                                          professionals to implement them—                 In 2018, we began implementing a new approach         from our member organizations, volunteers and              success story on how to unity to
                                                              IFAC membership is a globally-recognized
          enforcement.                                                                                                    are fundamental to fostering                     to driving quality membership. The new structure      staff by increasing the member organization-               improve quality assurance reviews,
22                                                            hallmark of a high-quality PAOs. IFAC membership                                                                                                                                                                                                                                 23
          Working with IFAC member organizations                                                                                                                           and oversight are fit-for-purpose and include         driven content published on the Global                     which was also published in Spanish
                                                                                                                          reliable, comparable, and timely
     ●●
                                                              makes it clear to public and private sector
          and volunteers, published seven articles                                                                                                                         transitioning the Compliance Advisory Panel to        Knowledge Gateway. These articles provide our         ●●   The Institute of Chartered Accountants
          on the Global Knowledge Gateway sharing             organizations locally, regionally, and internationally      organizational reporting—the                                                                                                                                      of Barbados detailed how changing
                                                                                                                                                                           a membership committee during 2019. This will         member organizations the opportunity to share
          experience and knowledge with the broader           that the PAO has credibility, sustainability, and           underpinnings of trust in markets,                                                                                                                                its corporate governance drives
                                                                                                                                                                           allow the committee a more targeted focus on          how they approached and resolved issues, their             organizational performance
          IFAC community.                                     standing.
                                                                                                                          investment, and economic growth.                 admission and enforcement matters while staff         adoption and implementation progress stories,
     ●●   Developed five regional priority plans as part of                                                                                                                                                                                                                            ●●   The Institute of Chartered Accountants
                                                              Our membership requirements include                                                                          continues to implement the Compliance Program.        and technical expertise. Using this approach,              of India told its success story of helping
          our active pipeline management to reach the
                                                              international standards adoption and                                                                         The Program will continue to be overseen by the       member organizations’ reach and influence were             the Indian railroads get on the right
          KPI target of nine new members and associates
                                                                                                                                                                                                                                 extended to Gateway’s 300,000+ annual web                  track for accrual accounting
          by the end of 2020.                                 implementation, as well as quality assurance and                                                             IFAC Board, without the additional oversight of the
                                                                                                                       Global Assessments                                                                                        visitors and its 30,000+ subscribers.                 ●●   The Lesotho Institute of Accountants
     ●●   Following outreach, engagement, and                 investigation and discipline systems.                                                                        PIOB.
                                                                                                                                                                                                                                                                                            detailed its journey to a localized
          development support, received nine                                                                           The Compliance Program’s two principal outputs                                                                                                                       professional accounting qualification
          applications in late 2018 for the 2019 admission    Member Requirements                                                                                          The Program will continue to be fully transparent,
                                                                                                                       are PAO-produced status updates and IFAC-                                                                                                                       ●●   The Society of Certified Accountants
          cycle.                                              & Improving Quality                                      produced full assessments of progress, challenges
                                                                                                                                                                           including publishing all compliance information
                                                                                                                                                                                                                                                                                            and Auditors of Kosovo provided advice
          Staff and volunteers carried out targeted           IFAC member organizations all participate in our                                                             online. We will also continue to develop and                                                                     on how improving PAO governance can
     ●●
                                                                                                                       and further opportunities for collaboration and
          engagement with PAOs interested in                  Member Compliance Program. The Program helps                                                                 improve the Program, such as enhancing                                                                           increase global engagement
          progressing with IFAC membership in 21              member organizations understand and follow
                                                                                                                       partnerships. These updates and assessments
                                                                                                                                                                           the risk-based approach to developing and                 New Member:                                       Thank you to all our member organizations
                                                                                                                       power IFAC’s information on the global status
          jurisdictions covering 6 regions.                                                                                                                                monitoring action plans for well-developed
                                                              clear guidelines and benchmarks on how to                of international standards adoption and                                                                       Association of Accountants of the                 that shared their stories on Gateway and
                                                              ensure high-quality performance and champion                                                                 member organizations. As well, we will continue                                                             with the IFAC global network.
                                                                                                                       implementation.                                                                                               Republic of Latvia
                                                              international standards. It also guides continual                                                            to develop our self-assessment tools and reporting
                                                              improvements in development areas.
DEVELOP THE ACCOUNTANCY PROFESSION
     Strategic Objective: Strengthen the global accountancy profession by providing development and                                                                      Without strong, sustainable PAOs there wouldn’t        Education
                                                                                                                                                                         be accountants able to facilitate economic activity,
     PAO support                                                                                                                                                         development, and decision making by the public
                                                                                                                                                                                                                                Education and pathways for professional
                                                                                                                                                                                                                                accountants was also a key IFAC focus area in
                                                                                                                                                                         and private sectors. Building PAO capacity is          2018 and will continue to be in 2019. During
     Key Achievements                                            by DFID and the Global Fund and organized in       PAOs are the cornerstone of a strong accountancy
                                                                 partnership with the Pan African Federation of                                                          central to strengthening the profession.               2018, IFAC collaborated with the Association of
     ●●   Participated in or organized 19 outreach                                                                  profession. They are the engines that produce the
          engagement and stakeholder events, including           Accountants.                                       competent professionals who create reliable                                                                 Accounting Technicians of the UK to develop
          five regional events, to raise awareness of the        Received an “A+” rating on IFAC’s fourth annual                                                         Capacity Building                                      a An Illustrative Competency Framework for
                                                            ●●
                                                                                                                    financial and non-financial information that
          value and need to develop the accountancy              DFID review.                                       supports economic development.                       Our PAO Capacity Building Program leverages            Accounting Technicians. The publication, issued
          profession.                                       ●●   Developed the Note on Good Practices for                                                                an extensive network and seeks out mutually-           in early 2019, is a resource for PAOs developing
     ●●   Provided technical assistance to 16 member             Collaboration—World Bank Group and IFAC,           PAOs educate and certify accountancy                 beneficial partnerships, realizing opportunities for   an AT designation as an additional pathway
          organizations, whose support needs were                providing a basis for collaboration for country-   professionals according to international technical   collaboration and optimization of scarce human         into the accountancy profession. This dialogue
          identified thought regional priorities.                and region-specific client-facing capacity         and ethical standards and best practices; improve    and financial resource. Projects frequently use        will continue throughout 2019 (see supporting
          Leveraged the expertise of the PAO                     building activities.
     ●●
                                                                                                                    the quality of financial reporting through the       a PAO-to-PAO model to share experiences and            international standards for more information on
          Development Committee to publish new              ●●   Held a two-day PAO Capacity Building Partners’     review, investigation, and discipline; and act as    common solutions and generate partnerships             the future path for international accountancy
          content to help PAOs become future ready.              Knowledge-Sharing Roundtable to share
24                                                                                                                  a resource to government, regulators, and other      that extend beyond the lifetime of the initial         education).                                                                     25
     ●●   Sustained seven ongoing UK Department for              experiences, explore lessons learned, and
                                                                 identify opportunities to enhance the Capacity     stakeholders.                                        engagement.
          International Development (DFID)-funded PAO
          capacity building projects in: Ghana, Kyrgyz           Building Program and PAO’s approach.
                                                                                                                                                                         Beginning in 2014, the Program included a grant
          Republic, Myanmar, Nigeria, Rwanda, Uganda,                                                                                                                                                                                                                              An Illustrative Competency
                                                            Overall Performance                                                                                          from DFID, which has funded projects in eight
          and Zimbabwe, as well as supporting the Pan-                                                                                                                                                                                                                             Framework for Accounting
                                                            We met or exceeded all our KPIs for this objective                                                           countries across Africa and Asia.
          African Federation of Accountants.                                                                                                                                                                                                                                       Technicians
                                                            in 2018, which called for:
     ●●   Approved a regional project to develop an                                                                    PAO Development                                   Beyond DFID-funded projects, IFAC establishes
          online learning platform for a public sector
          qualification by the African Organization of
                                                            ●●   Successful execution of the IFAC-Board                Committee Expertise                               regional priorities to support current and
                                                                 approved Capacity Building Program and                                                                  potential member organizations. Staff and
          English-speaking Supreme Audit Institutions                                                                       Evolving Expectations for Accountants
                                                                 Donor Engagement work plans;                          ●●
                                                                                                                                                                         volunteers engage directly with the PAO,
          on behalf of the African Professionalization                                                                      Means Changing Needs for Education &
          Initiative.                                       ●●   DFID annual review rating not below “A”; and                                                            including on-the-ground and virtual technical
                                                                                                                            Training
          Hosted a three-day conference, Developing         ●●   Effective management of the DFID relationship                                                           assistance. These support efforts are aided by
     ●●
                                                                                                                       ●●   What Does a Future-Ready PAO Look
          Accountancy Capacity in Fragile and Conflict-          and grant.                                                                                              the IFAC PAO Development Committee, whose
                                                                                                                            Like?
          affected States, in Johannesburg, South Africa.   Competent accountants behaving with integrity                                                                members are often the lead technical advisor
                                                                                                                       ●●   Building a Future-Ready PAO
          The event facilitated a dialogue between          provide society with reliable financial information                                                          working with each PAO.
          the accountancy profession, Accountants
                                                            that underpins economic development, and
          General, Auditors General, and development
                                                            ultimately contributes to reduced poverty and
          partners to design a fit-for-purpose strategy
          to build accountancy. The event was funded        shared prosperity.
SUPPORTING KEY CONSTITUENCIES
                                                                                                                                                                                                                                                                                              S U PPO R T I N G K E Y CO N S T I T U E N CI E S

     Strategic Objective: Support high-quality practices by professional accountants and ensure key                                                                   the G20 meeting, and with IFAC’s Public Policy and    Knowledge sharing and resource
                                                                                                                                                                      Regulation Advisory Group.                            development                                           Key Resources
     constituencies are considered in standard setting                                                                                                                                                                      In collaboration with PAOs, committee members,
                                                                                                                                                                      Advocating for these constituencies in the                                                                  Professional Accountants in Business
                                                                                                                                                                                                                            partners, and other stakeholders, we developed
     Key Achievements                                       Overall Performance                                                                                       standard-setting process includes ongoing                                                                   Focusing on CFOs and finance functions
                                                                                                                                                                                                                            thought leadership, guidance, toolkits, articles,
     ●●   Held two CFO roundtables in Malaysia and          Delivered value to member organizations by               Outreach Activities                              interaction with the standard-setting boards,
                                                                                                                                                                                                                            and webinars in 2018 to achieve our objective.
                                                                                                                                                                                                                                                                                  in the digital and multi-capitals age,
                                                                                                                                                                                                                                                                                  and resulting skills implications, IFAC
          Singapore with the support of the Malaysian       supporting the accountants in business and small-                                                         such as:
          Institute of Accountants and the Institute of                                                              ●●   ISCA professional accountants in                                                                                                                        developed:
                                                            and medium-sized practices constituencies.                                                                                                                      Professional Accountants in Business
          Singapore Chartered Accountants (ISCA).                                                                         business conference in Singapore (450+      ●●   Feedback on proposed standards through                                                                 ●●   A Vision for the Finance Professional and the
     ●●   Conducted a workshop with 16 PAOs to              ●●   Accountants in business: 7.61/10 in 2018,                delegates)                                       more than 16 formal and informal responses to    Engaging accountants in business presents a                Finance Function;
          help them better support and engage with               7.6/10 in 2017                                      ●●   Kampuchea Institute of Certified Public          proposals and meeting papers (19 in 2017);       practical challenge since they are dispersed across   ●●   Perspectives on the Finance Function
          accountants in business and the public sector.                                                                  Accountants and Auditors-ASEAN                   Attendance by standard-setting board             many organizations and locations, often in small           Journey;
                                                            ●●   SMP: 7.72/10 in 2018, 7.8/10 in 2017                                                                 ●●

     ●●   Hosted a webinar with more than 25 PAOs to                                                                      Federation of Accountants Conference             members at committee meetings;                   numbers. Consequently, they often become              ●●   Identifying the Role of the Finance Function
                                                            Professional accountants in business, the public              2018, Digitalization of Accounting                                                                                                                           in Enterprise Performance Management;
          gain insight into PAO needs in relation to SMPs                                                                                                             ●●   Engaging in conference calls and webinars on     disconnected from their member organization. To
                                                            sector, and in SMPs make up a significant                                                                                                                                                                                  and
          and accountants in business.                                                                                    (Phnom Penh, Cambodia)                           specific SMP issues; and                         help PAOs take a strategic and practical approach          United, Connected and Aligned: How the
                                                            proportion of the accountancy profession. Helping
                                                                                                                                                                                                                                                                                  ●●

          Advocated for the accountants in business and                                                              ●●   West Africa Economic and Monetary                SMP Committee members participation in                                                                      Distinct Roles of Internal Audit and the
26   ●●                                                                                                                                                               ●●                                                    to enhancing relevance for accountants in                                                                             27
          SMP constituencies in the standard-setting        the profession support and enhance its relevance              Union International Congress (Dakar,             various standard-setting board task forces and                                                              Finance Function Drive Good Governance
                                                                                                                                                                                                                            business, IFAC provided our member organizations
          process, includes ongoing interaction with the    to these key constituencies, and promoting                    Senegal)                                         working groups.                                  with a self-assessment evaluation tool to identify
          standard-setting boards.                          awareness of their vital roles as business partners      ●●   ADC Nationale congress, Brescia, Italy                                                                                                                  Small- and Medium-sized Practices
                                                                                                                                                                      Input into standard setting on behalf of these        the areas of growth and investment.
     ●●   Produced key resources and materials to           and advisors, continues to be strategically              ●●   30+ additional events and speaking &        segments of the profession also contribute to                                                               ●●   Guide to Using International Standards
          help IFAC member organizations engage and         important for IFAC and our member organizations.              stakeholder engagement opportunities                                                              Small- and Medium-sized Practices                          on Auditing of Small- and Medium-sized
                                                                                                                                                                      IFAC’s support for standard setting more broadly.
          support their membership.                                                                                                                                                                                                                                                    Entities, 4th Edition, updated for projects
                                                                                                                                                                                                                            During 2018, IFAC prepared promotional and                 on auditor reporting, disclosures, auditor
     ●●   Published 110+ original articles and videos on    Global Insights and Advocacy                                                                                                                                                                                               responsibilities relating to other information,
          the Global Knowledge Gateway.                                                                                                                                                                                     communications materials to counter a lack of
                                                            Using our international convening power, IFAC                                                                                                                                                                              and using the work of internal auditors
                                                                                                                                                                                                                            awareness of the range of resources, tools and
     ●●   Attracted more than 316,000 unique visitors       brought together accountants in business, SMPs,       awareness of the value of these segments of the                                                                                                                 ●●   IFAC Global SMP Survey, which focused on
          (295,000 in 2017), totaling more than 1 million                                                                                                                                                                   guidance available for SMPs. IFAC also worked              practice transformation and shared more
                                                            PAOs, and other stakeholders in London, New York,     profession; and, importantly, generate actionable
          visitors since its 2014 launch.                                                                                                                                                                                   closer with member organizations to increase               than 6,000 survey responses from 150
                                                            and Singapore through committee meetings.             recommendations for IFAC member organizations                                                                                                                        countries
     ●●   Grew Gateway’s newsletter subscriptions to                                                                                                                                                                        local impact.
                                                            These events facilitated high-quality interaction,    on discussed issues.                                                                                                                                            ●●   Guide to Practice Management for
          more than 30,000 (29,000 in 2017).                                                                                                                                                                                                                                           Small- and Medium-sized Practices, 4th
                                                            engagement and collaboration, and provided
     ●●   Created a dedicated technology content area                                                             Policy and Standards                                                                                                                                                 Edition, which includes a new module on
                                                            the opportunity to identify and debate trends,
          to highlight emerging technology trends,                                                                                                                                                                                                                                     leveraging technology
                                                            opportunities and challenges. They also increased     IFAC support for these key constituencies
          including blockchain, artificial intelligence,                                                                                                                                                                                                                          ●●   The International Code of Ethics for
          data analytics, cybersecurity, and ethics in a    engagement and collaboration with IFAC                includes specific input into policy and standards                                                                                                                    Professional Accountants: Key Areas of Focus
                                                            member organizations and others in our network;       in 2018, including participation on the B20 SME                                                                                                                      for SMEs and SMPs
          digital age.
                                                            provided opportunities to advocate and promote        Development Task Force in Argentina ahead of
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