The International Federation of Accountants (IFAC) was created in 1977 and its mission is to develop and promote an accounting profession with harmonized standards, capable of promoting high quality services consistent with the public interest.
This federation was conceived, like the IASC, by impulse of the International Coordination Committee for the accounting profession who, in 1977 before its definitive dissolution, recommended the creation of such federation, whose constitution agreement was ratified by sixty (60) countries, in that year, on the occasion of the XI International Accounting Congress.
The IFAC was born with the purpose of dealing especially with the standardization of the Audit, in the triple technical, deontological and professional training aspects. Committees for education, ethics, auditing, technical standards, international conferences, regional organizations, planning and management accounting operate in the organization.
The governing bodies of the Federation are the Assembly in which the member organizations and the council, made up of fifteen (15) people, are represented.
Currently, IFAC groups one hundred fifty-seven (157) organizations from one hundred eighteen (118) countries, which in total represent about 2.5 million accounting professionals.
IFAC and IASC signed a reciprocal commitments agreement in 1982. Among the most important clauses are the following:
- All IFAC members will automatically be members of the IASC, IASC members who were not IFAC members, also had to join it and thus practice all the institutions of accounting experts, worldwide they are simultaneously affiliated Both bodies. The IFAC Council will appoint thirteen 813) of the seventeen (17) components of the IASC Governing Council. The IASC Governing Council will report annually to the IFAC, its activities and budgets. Each of these bodies is empowered to attend these meetings held by the council of the other institution, with voice but without vote. IFAC recognizes the IASC as the only responsible corporation with the capacity to publish International Standards on its own behalf. Accounting.
In the field of professional ethics, IFAC does not have direct punitive powers, but has developed through a committee of ethics a set of pronouncements that display certain deontological principles of the accounting profession, understanding as such the group of people who carry out work professionals related to accounting and auditing, either privately or publicly.
The profession of private practice includes accountants who work for the government and public administrations, for business companies and non-profit organizations, and also those dedicated to teaching.
The ethical principles or obligations of the accounting profession are, according to the Guide on Professional Ethics, those of objectivity, integrity, independence (especially for public exercises), professional secrecy, subjection to technical standards, professional competence and ethical conduct in accordance with the good reputation of the profession.
With regard to training and since one of the basic obligations of the accounting professional is the achievement and maintenance of the necessary theoretical-professional competence, it is logical that the conditions of education and practical experience for access to the profession are precisely defined., as well as the bases of the continuous formation that allow to conserve and update the professional knowledge.
For this reason, the work of the IFAC Training Committee has consisted of developing these requirements, referring to the profession's access, the most important recommendations contained in the International Guides of the Training Committee.
Said requirements refer to subjects such as the level required to begin specialization studies in accounting or auditing; the core of knowledge that every accounting professional should know, among them we can mention the Audit, Financial Accounting, Internal Accounting, Finance, Informatics and Tax System, complemented by the behavioral sciences, Law, Economics, Mathematics and Statistics; the proof of professional competence prior to the qualification or granting of the accounting professional title; Lastly, if the professional is going to belong to an auditing institution or is going to request the inscription in a register of auditors.
Regarding permanent professional training, the Guide that develops it indicates that the objectives it pursues are the maintenance of an adequate level of knowledge, helping members to adapt to new techniques and responsibilities and to demonstrate to society the profession's commitment to serving the public interest.
IFAC is dedicated to strengthening the profession that all of us serve. The DOMs and the compliance program are designed to help achieve this goal; The international environment for the profession has undergone significant changes as a result of corporate failures and declining confidence in confidence in the quality of financial reporting. These changes have emphasized the importance for IFAC of its role in helping to improve the performance of the global profession.
DOMs will serve as the foundation of the compliance program and outline the obligations of IFAC members with respect to quality assurance, research and discipline as well as the responsibilities of members to promote and carry out International Accounting Standards (IASC).
