(a) Endorsement of IASs. The IFAD has endorsed Internationl Accounting Stan-
dards as the global benchmark: “All general-purpose financial information must be
prepared using a single world-wide framework using common measurement criteria
and fair and comprehensive disclosure. The framework must provide users with a
transparent representation of the underlying economics of transactions. All of this
must be done rigorously and on a consistent basis. The vision will not be achieved
overnight and will require significant long-term efforts. National accounting stan-
dards of most countries should be raised with IAS as the benchmark or minimum
standards.”
(b) Annual IAS–National GAAP Comparisons. Under the auspices of the IFAD, the
large accounting firms have annually published a comparison of approximately 60
national GAAP and IASs. The lastest comparison may be found at the IFAD’s Web
site at http://www.ifad.net/.
16.14 INTERNATIONAL ACCOUNTING STANDARDS FOR THE PUBLIC SECTOR.
IASB’s Preface to International Financial Reporting Standards notes that IFRSs are
designed to apply to the financial reports of all profit-oriented entities. Although
IFRSs are not designed to apply to not-for-profit or governmental activities, non-
profit and governmental entities “may find them appropriate.” The Public Sector
Committee (PSC) of the IFAC develops International Public Sector Accounting Stan-
dards (IPSASs) for financial reporting by governments and other public-sector enti-
ties. The PSC has issued a guideline stating that IFRSs are applicable to governmen-
tal business enterprises.
More information is available at the PSC Web site at http://www.ifac.org/PublicSector.
16.15 INTERNATIONAL AUDITING STANDARDS. The International Auditing and
Assurance Standards Board (IAASB) is a committee of the IFAC that works to im-
prove the uniformity of auditing practices and related services throughout the world
by issuing pronouncements on a variety of audit and assurance functions and by pro-
moting their acceptance worldwide. Until 2002, the IAASB was known as the Inter-
national Auditing Practices Committee (IAPC).
IAASB pronouncements on audits and reviews of historical financial information
are of two types:
1.International Standards on Auditing (ISAs)
2.International Auditing Practice Statements (IPSs)The ISA on the auditor’s report on financial statements requires that the auditor’s
opinion must clearly indicate the financial reporting framework used to prepare the
financial statements (including the country of origin of the financial reporting frame-
work when the framework used is not International Accounting Standards) and state
the auditor’s opinion as to whether the financial statements give a true and fair view
(or are presented fairly, in all material respects) in accordance with that financial re-
porting framework and, where appropriate, whether the financial statements comply
with statutory requirements.
More information is available at the IAASB Web site at http://www.iaasb.org.
16.15 INTERNATIONAL AUDITING STANDARDS 16 • 19