The International Federation of Accountants has submitted a set of eight recommendations to G-20 government finance leaders on ways to support global growth and resilience.
IFAC submitted the recommendations Wednesday for consideration at the forthcoming G-20 Leader’s Summit in Brisbane, Australia on November 15-16.
IFAC’s eight recommendations to help achieve strong, sustainable, and balanced growth center upon three core themes:
Global consistency for sound financial regulation and standards for reporting and audit;
Enhanced financial management, reporting, transparency and accountability by governments; and
Effective taxation systems.
“IFAC understands that global economic growth, stability, and long-term resilience can only be truly supported once governments and the private sector get the numbers right,’” said IFAC chief executive Fayez Choudhury in a statement. “Our detailed recommendations are aimed squarely at regaining momentum toward globally consistent regulation and adoption of high-quality international financial reporting, auditing, and auditor independence standards and requirements, improving both public and private sector transparency, and reducing taxation opacity.
“We have seen too many times throughout history how flawed numbers, and the decisions they impact, can lead to the unraveling of global economic stability,” he added. “The most recent financial crisis generated much global interest in finally addressing the need for internationally consistent, appropriate regulation to help avert future crises. That momentum has dissipated and we need to regain it. Instead, unilateral government action is creating more divergence, which does not augur well for a coordinated global response to the next crisis.
“If adopted, our recommendations would serve the public interest by placing integrity—in recognizing, measuring, processing, and reporting financial transactions—at the heart of the numbers relied upon by decision-makers to maintain economic performance and social cohesion,” said Choudhury. “The accountancy profession’s skills and experience are essential to advancing economic stability, strengthening financial systems and architecture, and promoting accountability and longer-term sustainability and growth. We have proposed to the G-20’s leaders eight effective, practical recommendations focused on protecting and serving the global public interest, and which if adopted would significantly enhance global economic stability.”
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