WORLD ACADEMY OF INFORMATICS AND MANAGEMENT SCIENCES
ISSN : 2278-1315
recognition that the latter two are historically less well
G20 countries play a crucial role in fostering institutions and
addressed is significant in changing the perception of
governance models that can anticipate, respond to, and
PAIBs.
mitigate future crises. In advance of the 2018 G20 Summit in
Effective Communication and Storytelling – Accountants
Buenos Aires, Argentina, IFAC issues 10 actionable
need to up their game in communications which will require
recommendations for G20 countries to support the global
a new broader, strategic view of their roles and new skills.
economy.
They need to be focused on addressing long term value
Develop Smarter Regulation
creation for multiple stakeholder groups, providing
Regulation must effectively support the public interest
information on multiple capitals for decision making, and
through well-targeted conception, effective design and
reporting to support the creation and development of
committed implementation. To achieve smarter regulation,
responsible organizations. This will involve communication
G20 countries must:
beyond numbers. It will require a focus on storytelling and
a. Develop and adopt consistent, comprehensive, and
authenticity to engage and influence important stakeholders.
high-quality regulation,
In other news, – The International Ethics Standards Board
b. Create a coherent, transparent global regulatory
for Accountants (IESBA) provided an update of its activities
environment that limits divergence, and
including resources to support the implementation of
c. Implement internationally-accepted standards to
NOCLAR (Non-Compliance with Laws and Regulations),
enhance confidence and stability in the global
and its new project on Promoting the Role and Mindset
financial system.
Expected of Professional Accountants. The latter project has
Increase Transparency
arisen in the light that the IESBA will not be seeking to
Robust transparency in the public and private sectors is key to
expand the concept of “professional skepticism” to
earn public trust, fight corruption, encourage good governance
accountants working outside audit where the term is applied
and promote ethical business practices. To increase
with a specific meaning and definition. The committee felt
transparency in the global economy, G20 countries must:
this position was appropriate given the focus on accountants
a. Strengthen governance in the public and private
working as a business partners and active members of a
sectors,
value creating team. However, accountants in business will
b. Embrace integrated reporting,
continue to be expected to exercise professional judgment in
c. Enhance public sector financial management, and
all they do which, of course, includes professional challenge
d. Collaborate to tackle corruption.
when appropriate.
Enable Inclusive Growth
All these areas are the “Signs on the Road” that will lead to
The fruits of a growing global economy must be shared
the new, expanded, and more robust image and skill set of
inclusively to inspire confidence in the future. To enable
professional accountants in business. The PAIB Committee
inclusive growth, G20 countries must:
is focused on helping IFAC members around the world
a. Foster an environment that supports small and
recognize and prepare for these changes.
medium sized (SMEs) entity growth,
b. Create a secure and digital-ready investment
environment, and
c. Collaborate for a coherent international tax system.
Why this was directly addressed to the G20 countries during a
summit, it is important to note that, these principles can be
applied in any country and economy. They form the bases by
which credible financial information are reported, and will
create enabling environment for the operation of business
activities, especially for SMEs. Adoption is universal as
economic growth depends on environmental favorability.
SMART
REGULATION,
HEIGHTENED
TRANSPARENCY, INCLUSIVE GROWTH NEEDED
About IFAC
IFAC is the global organization for the accountancy
FOR GLOBAL ECONOMIC PROGRESS
profession dedicated to serving the public interest by
By:
strengthening the profession and contributing to the
IFAC (the International Federation of Accountants)
development of strong international economies. IFAC is
(New York, November 19, 2018)
As a recommendation to the G20, Focus on Rebuilding
comprised of more than 175 members and associates in more
Public Trust, IFAC (the International Federation of
than 130 countries and jurisdictions, representing almost 3
Accountants) calls upon G20 countries to pursue smart
million accountants in public practice, education, government
regulation, heightened transparency, and inclusive growth to
service, industry, and commerce.
rebuild trust in institutions and advance global economic
progress.
SUMMARY OF DIFFERENT SOURCES, FEATURES,
“Low levels of public trust threaten both economic and
AND COSTS OF BUSINESS FINANCE
political stability”, said Fayezul Choudhury, IFAC CEO.
“Leaders in government and business must work together to
INTRODUCTION
bolster good governance and collaborate for effective public
Sources of finance for business are equity, debt, debentures,
policies that inspire confidence in the institutions supporting
retained earnings, loams, letter of credit, euro issue, venture
the global economy”.
funding etc. These sources of funds are used in different
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