The International Federation of Accountants signed a memorandum of understanding with the International Bar Association to formalize a commitment to closer cooperation between the two organizations and the legal and accounting professions. Separately, IFAC issued guidance on greenhouse gas reporting.
This MoU offers a framework for expanding cooperation between the IBA and IFAC, with a special focus on anti-corruption measures and how the accounting and legal professions can work more closely together in the fight against money laundering and economic crime, with stakeholders such as the United Nations and Financial Action Task Force.
Other areas of cooperation include maintaining the reputations and integrity of the accountancy and legal professions; ensuring that initiatives to regulate both professions are proportionate and fit-for-purpose; and enhancing the strength of the IBA and IFAC’s collective voice on global policy issues so that the legal and accounting professions are in the best position to serve the public interest.
“I hope that our relationship, at the global level, inspires and encourages professional accountancy organizations and bar associations to develop stronger bilateral relationships in their jurisdictions to increase their impact in the public interest and achieve shared goals,” said IFAC CEO Kevin Dancey in a statement Wednesday.
Collaboration between the IBA and IFAC has grown in recent years since the two organizations worked together on an anti-corruption mandate in July 2018 and co-hosted joint events in June and December 2021 on combating corruption and financial crime.
“As the global voices for our respective professions, the IBA and IFAC are uniquely placed to contribute to global policymaking in the public interest,” said IBA executive director Mark Ellis in a statement. “This MoU marks a natural progression of the collaborative work the IBA and IFAC have been undertaking for several years. There is strength in our collective voice as we aim to bring about positive, meaningful change in the anti-corruption sector. We look forward to implementing the framework set out in this memorandum and furthering our collaborative efforts with IFAC.”
Greenhouse gas reporting guidance
Separately, on Tuesday, IFAC teamed up with another organization, the We Mean Business Coalition, on new guidance for finance professionals and professional accountants on delivering robust greenhouse gas reporting.
The guidance is in two parts: “8 Steps to Enhance GHG Reporting: A Roadmap for Accounting and Finance Professionals” and “GHG Reporting Building Blocks for Accountants.”
“With their ideal positioning to champion an integrated mindset by connecting financial and emissions data and processes and analyses, professional accountants and finance professionals play a crucial role in providing decision-useful and trusted GHG reporting to management and capital markets,” said Dancey in a statement. “The release of this guidance is a significant step towards enabling these professionals to prepare for the increasing demand for investor-grade climate reporting by aligning GHG emissions accounting with financial accounting.”
The documents include a roadmap for engaging with others across a business to prepare for GHG emissions reporting requirements aligned to financial reporting processes, along with technical guidance for accountants on how to collect and improve the quality of data related to all kinds of greenhouse gas emissions at both the individual entity and group levels.
“This guidance demonstrates that robust GHG reporting is not an onerous task, but rather one that can be incorporated, at minimal cost, into existing systems and processes,” said We Mean Business Coalition CEO Maria Mendiluce in a statement. “By working together, finance and sustainability professionals can report in the most efficient way and, in doing so, attract greater investment from those capital providers looking for the most sustainable companies.”
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