The International Federation of Accountants and the International Valuation Standards Council have renewed their memorandum of understanding and plan to strengthen their mutual efforts to improve confidence in business reporting.

The MoU, which was originally signed in 2009, creates a process to allow valuers and auditors to gain a better mutual understanding of the standards that are relevant to financial statements. The deal will also help both IFAC and the IVSC to pursue their objective of maintaining confidence in business reporting in both the public and private sectors. Actions under the MoU are designed to promote the credibility and acceptability of valuations prepared in accordance with the International Valuation Standards.

“This agreement to renew the earlier memorandum of understanding represents an ongoing commitment by both IVSC and IFAC to strengthen cooperation between the two organizations,” said IVSC interim chairman Roel Campos in a statement. ”It demonstrates the cohesive and united approach of the IVSC, IFAC, and its independent standard-setting boards to maintaining standards as global markets continue to develop.”

The MoU reflects the IVSC’s and IFAC’s shared conviction that the transparency provided by high-quality international standards contributes significantly to the effective functioning of capital markets and economic growth. The MoU acknowledges the ongoing working relationships between the IVSC, IFAC, and the International Auditing and Assurance Standards Board, which is supported by IFAC. The MoU also anticipates closer working relationships between the IVSC and other IFAC activity groups.

“The ongoing financial crisis has shown the importance of transparency in financial reporting by both private and public sector entities,” said IFAC president Göran Tidström. “The IVSC has served as a member of the IAASB’s Consultative Advisory Group, and the organizations are both members of the Private Sector Task Force (PSTF). This agreement strengthens the already close ties between the IVSC and IFAC and will serve as a platform for further cooperation.”