International accountancy leader calls on profession to rescue global economy

INTERNATIONAL Federation of Accountants (IFAC) president, Warren Allen used his keynote address to the Institute of Public Accountants (IPA) National Congress, on the Gold Coast last week, to urge accounting professionals to play a leading role in dragging the global economy out of a five-year crisis.

 

He also highlighted the role accountants must play - especially in what he called the 'engine rooms' of economies around the world, small-to-medium enterprises (SMEs) - in vital non-financial reporting.

"Non-financial reporting is important for decision making, transparency and discharging accountability," Mr Allen said.

He stressed "the criticality of enhanced organisational reporting", and how this applied to SMEs as much as it did for large businesses.

"SMEs are the engine room of every economy around the world."

Mr Allen's keynote address was titled The global accounting profession: working to strengthen the global economy and he spoke of the important role of the accounting profession working together to bring the global economy out of crisis.

Mr Allen stressed that the accounting profession needed to be seen as a leader in enhancing economic stability.

"Countries will not achieve economic stability without a strong, active and disciplined accounting profession," Mr Allen said. This placed powerful pressures on the areas of recruitment and continual training in accountancy.

 

Mr Allen said that continual encouragement to recruit the 'best and brightest' was crucial for the continuance of the accounting profession's role in strengthening the global economy. He said this was becoming a worldwide problem as talent was often lost to other sectors.

"If the trend continues, the accounting profession may be unable to properly meet the demands of our global communities," he said.

Mr Allen commended the IPA for its continued support to IFAC and its work globally.

The IPA met for its major conference on the Gold Coast last week. Formed in 1923, the IPA is one of Australia's three legally recognised professional accounting bodies with more than 24,000 members and students in over 51 countries. The IPA is a member of the International Federation of Accountants, the Accounting Professional and Ethical Standards Board and the Confederation of Asian and Pacific Accountants.

IFAC is the global organisation for the accountancy profession. Its stated role, according to Mr Allen, is to serve the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC has 173 member organisations and associates in 129 countries and jurisdictions, representing about 2.5 million accountants in public practice, education, government service, industry and commerce.

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