Sunday 15 December 2019

GLOSSARY OF TERMS

Basel Committee on Banking Supervision:

The BCBS is the international body comprising central banks and banking supervisory authorities from certain key markets that formulates and encourages convergence toward broad supervisory standards, guidelines, and statements of best practice. www.bis.org/bcbs/

Clarity project:

A comprehensive IAASB program that enhanced the quality and consistency of global audit practice by applying a new drafting format to all existing and future International Standards of Auditing. The drafting conventions adopted for this purpose involved a new three-part structure—objectives, requirements, and application guidance—and simplified English to clarify intent, improve understandability, and facilitate translation. This project was completed in December 2008.

Code of Ethics for Professional Accountants:

The Code is an IESBA initiative that enhanced the clarity and understandability of the provisions of the IFAC Code of Ethics for Professional Accountants through the application of new drafting conventions. These conventions focused on clarifying the language and did not change the fundamental structure of the code.

Compliance Advisory Panel:

The panel responsible for overseeing the implementation and operation of the IFAC Member Body Compliance Program. The objective of this program is to evaluate the quality of IFAC member and associate member bodies’ endeavors to meet the requirements of IFAC membership. The PIOB oversees the work of the CAP.

Consultative Advisory Groups:

CAGs are groups in which stakeholder organizations, and notably regulators, public interest entities and users of financial statements are represented. CAGs do not set standards; they are required to offer assurance that the standards and strategic plans produced by their respective standard-setting boards are responsive to their review and comments, and reflect public interest priorities.

European Commission:

The EC is the executive branch of the European Union (EU). The EC may make legislative proposals and is ultimately responsible for the implementation of EU legislation throughout member states. ec.europa.eu/index_en.htm

Financial Stability Board:

The forum that promotes international financial stability, improved functioning of markets and reduced systemic risk through information exchange, cooperation in financial supervision and surveillance, and coordination of efforts. The FSB brings together representatives of national financial authorities responsible for financial stability in significant international financial centers, international financial institutions, international regulatory and supervisory groupings, and committees of central bank experts. www.financialstabilityboard.org

International Accounting Education Standards Board:

The IAESB’s pronouncements that address the principles of learning and development for professional accountants. They prescribe good practice in learning and development for professional accountants and should be incorporated into the educational requirements of IFAC member bodies.

International Accounting Standards Board:

The London-based IASB is an independent, privately-funded accounting standard-setter that formulates the International Financial Reporting Standards (IFRSs) www.ifrs.org

International Association of Insurance Supervisors:

The IAIS is the global organization that represents insurance regulators and supervisors, issues global insurance principles, standards and guidance papers, provides training and support on related issues, and promotes effective insurance supervisory regimes. www.iaisweb.org

International Auditing and Assurance Standards Board:

The independent standard-setting board that develops International Standards of Auditing and other pronouncements dealing with auditing, review, other assurance, quality control, and related services. The PIOB oversees the work of the IAASB.

International Ethics Standards Board for Accountants:

The international standard-setting board that develops ethical standards and other pronouncements for use by professional accountants. The PIOB oversees the work of the IESBA.

International Federation of Accountants:

The global organization representing the accountancy profession. IFAC is committed to protecting the public interest by developing high-quality international standards, promoting strong ethical values, encouraging quality practice, and supporting the development of all sectors of the profession around the world. The IAASB, IAESB, and IESBA are three of IFAC’s independent standard-setting boards. www.ifac.org

International Organization of Securities Commissions:

IOSCO is the cooperative forum for securities regulatory agencies and international standard setters for securities markets. www.iosco.org

International Public Sector Accounting Standards Board:

The IPSASB is the IFAC standard-setting board that issues the global financial reporting standards for application by public sector entities other than government business enterprises. It is not overseen by the PIOB. (first five-year review) Link to the MG Report on the Review of the 2003 IFAC Reform Link to world map on adoption of ISAs

Monitoring Group:

The regulatory and international organization responsible for monitoring implementation of IFAC reform. The MG nominates PIOB members and engages in dialogue with the international accountancy profession, receives operating and financial reports from the PIOB, and updates the PIOB regarding significant events in the regulatory environment. Members of the MG are the Basel Committee on Banking Supervision, the European Commission, the International Association of Insurance Supervisors, the International Organization of Securities Commissions, the World Bank, and the Financial Stability Board; the International Federation of Independent Audit Regulators is an observer.

Public Interest:

That which is coincident and commensurate with promoting and protecting the integrity, inclusiveness, transparency and fairness of international markets and enhancing the stability of the global financial system. It is served through independent oversight, strict due process, open consultation and transparency. The audit process and the standards by which the audit is conducted are major contributors to the quality of financial reporting. Thus they help enhance the stability of the global financial system. (link to IFAC Public Interest Framework)

Public Interest Activity Committees:

The groups established under the auspices of the IFAC consisting of three independent standard-setting boards—IAASB, IAESB, and IESBA—and the CAP. Each board is composed of practitioner, non-practitioner, and public members and is subject to PIOB oversight.

Statements of Membership Obligations:

The seven statements issued by the IFAC that establish requirements for IFAC members and associates to promote, incorporate, and assist in implementing international standards issued by IAASB, IAESB, IESBA, and the International Accounting Standards Board. The SMOs also establish requirements for quality assurance and investigation and disciplinary activities. Statements_of_Membership_Obligations

Terms of Reference:

The document that sets out the objective, scope of activities, and membership for each of the IAASB, IAESB, IESBA, their respective CAGs, and the CAP. These documents are available on the IFAC website.

World Bank:

The World Bank is the international financial institution that provides financial and technical assistance to developing countries while seeking to reduce global poverty and improve living standards. www.worldbank.org