1. The Accountancy Profession – Adding Value Globally, Regionally and Locally
Alan Johnson
IFAC Board Member
South Asian Federation of Accountants / IFAC PAIB Forum
Mumbai, 23 April 2016

2. IFAC and Our Profession
As an accountant I am proud to be a member of this profession. It is, to my knowledge, the only profession that has a global organisation that represents us across the world and unites us under one umbrella.

3. What is IFAC?
Global organisation for the accountancy profession
Founded in 1977
More than 175 members and associates, 130 countries
Representing more than 2.8 million accountants globally
Accountants working in public practice, education, government, industry & commerce
IFAC is at the heart of the entire accountancy eco-system
Delivers public value, working always in the public interest

4. IFAC’s Vision
A global accountancy profession recognised as a valued leader in the development of strong and sustainable organisations, financial markets & economies.

5. To serve the public interest by …
IFAC’s Mission
To serve the public interest by …
contributing & facilitating the development and adoption of high quality standards and guidance
contributing to the development of strong professional accountancy organisations & accounting firms and high quality practices for professional accountants
promoting the value of professional accountants worldwide
speaking out on public interest issues

6. Accountants are Crucial
IFAC believes that the world needs a strong & vibrant accountancy profession of highly- trained ethical accountants to protect the public interest …
to promote economic activity & development
that will lead to responsible & effective governments
thus building overall confidence in the global financial system

7. IFAC 2016-2018 Strategic Plan Charting the Future of the Global Profession
Strategic Objectives— Strengthening the profession in the public interest
International Standards Support
Global Accountancy Profession Support
Global Accountancy Profession Development

8. Nexus 1: The Accountancy Profession, Behind the Numbers
IFAC member organizations grew 16% (2.4m to 2.8m)
1/3 of IFAC members in Asia
Employment of IFAC member organizations:
Business & Industry: 5%
Public Practice: 45%
Public Sector: 8%
Academia / Education: 2%
Data shows significant opportunity for our profession

9. Nexus 2: The Accountancy Profession – A Global Value-Add
Economic development, improved living standards linked to a robust accountancy profession
Economic contribution of the global accountancy ecology is $575 bn
IFAC member organizations contribute $248 bn
Contribution from Asia has a huge potential to grow

10. Developing the Profession is Crucial
When PAOs function effectively they further the quality of financial management and reporting, which in turn…
attracts foreign direct investment;
promotes growth and development of the small- and medium-sized sector;
enhances transparency and accountability in the use of resources in both private and public sectors;
improves the delivery of vital public services; and
enhances the effectiveness and efficiency of official development assistance.

11. A Profession Relevant to Professional Accountants in Business

12. A Place to Start: What is a PAIB?
Professional accountant working in:
business and industry
public and not-for-profit sectors
education
In:
finance and accounting
operations
internal audit
Compliance
Reporting
investor relations

13. PAIBs: A Unique Set of Challenges
Work in an environment together with other professionals
Not always connected with their member body, thus creating an identity and recognition problem
Often perceived as “back office” support rather than adding value in “performance” roles
Professional mindset and skills applied in a very different environment than public practice – we need to be prepared!

14. Key Business Challenges Facing PAIBs
Speed of change and keeping up-to-date
Fulfilling employer expectations to balance stewardship/compliance and entrepreneurial roles
Being transparent and ethical under pressure
Navigating fragmented career paths
Acquiring broader professional skills and capabilities that enable our full contribution to organizations

15. Supporting PAIBs is an Opportunity
Provide relevance through:
Certification and training/education programmes: ensure a relevant professional skillset for professional accountants
Advocate the value proposition of the profession and professionalization
Support services valued by PAIBs
Achieving relevance requires a collective effort – between PAOs, regional bodies and IFAC
Ensure PAIBs have status in the profession
Use your members as a force for change!

16. Working together to ensure a profession relevant to PAIBs by:
IFAC and SAFA
Working together to ensure a profession relevant to PAIBs by:
Identifying trends and priorities for the profession
Sharing knowledge on emerging themes and issues
Equipping PAOs to better support their PAIBs
Advocacy: Identifying significant opportunities to place PAIBs and PAIB issues in the spotlight

17. Relevant PAIB Focus Areas
I would not like to talk about some of the focus areas relevant for PAIBs

18. Focus Area: The Role of Accountants in Society
The profession’s role in the Global Goals for Sustainable Development
Our global profession means we can speak with one voice on issues that are relevant to society, everywhere
We need to act in the public interest in everything we do
Our training and continuous development ensures we remain relevant
Our collaborative ways of working mean our influence is widespread and our advice is sought and respected

19. Focus Area: Effective Governance, Risk & Control
PAIBs delivering effective governance and risk management
Managing risk as an integral part of managing an organization
Achieving business objectives as well as ensuring compliance
Responding to changes in the business environment
Understanding the nature of risks and the impact on the organization
It is not about avoiding risks or being risk averse, it is about managing risks effectively

20. Focus Area: Enhancing Audit Quality
Audit quality a joint responsibility between auditor and organization
A quality team of audit professionals
Audit is not a commodity service.
A quality audit is unlikely to be cheap.
Honest and transparent communication between all parties in the financial reporting supply chain
efficient financial reporting timetable
continuous communication
A strong internal control environment
A strong and independent internal audit function

21. Focus Area: High-Quality Financial Reporting
Financial reporting is the bedrock:
Staying on top of developments in financial reporting e.g., leases/revenue recognition and ensuring high quality financial reporting
High-quality financial statements prepared and audited using global standards help support the continued growth and diversification of the region's economy.

22. Integrated Reporting: Communicating Value Creation
Addresses problems of corporate reporting system
Capital providers & stakeholders want to better understand value creation and preservation
Provides an opportunity to
Create value
Tell the story
Integrated thinking unlocks change in mindset and create real change
PAIBs: ideally positioned to facilitate integrated thinking

23. Other Focus Areas
Trends impacting the finance function and implications for the global profession and PAOs
Outsourcing/offshoring
Finance business partnering, career pathways and talent acquisition
Digital technology and the effects of automation

24. High performing public sector
Other Focus Areas
High performing public sector
Accountability Now initiative to improve financial reporting & transparency
Enhancing public sector governance & accountability
Combatting fraud and corruption
Corporate taxation
Encouraging smart regulation

25. Final Thoughts
IFAC plays an essential role in promoting a strong and robust accountancy profession
Everything we do is working entirely in the public interest
We speak out on key issues on behalf of the profession
We support capacity building of the global accountancy profession
Together with our member organizations we play a role in supporting all accountants to succeed in their careers
We contribute to global economic growth and development which have wide societal benefits