International Federation of Accountants (IFAC)

Definition

The International Federation of Accountants (IFAC) is a global organization for the accounting profession aimed at developing high-quality international standards. It works to promote ethical practices, enhance the quality of services, and strengthen the public's trust in the accountancy profession.

5 Must Know Facts For Your Next Test

1. IFAC develops and promotes international standards for auditing, assurance, ethics, education, and public sector accounting.
2. It represents over 3 million accountants in more than 130 countries.
3. IFAC's standards are designed to improve transparency and accountability in financial reporting.
4. The organization collaborates with regulators, governments, and other stakeholders to ensure the adoption and implementation of these standards.
5. IFAC also addresses issues related to sustainability reporting and integrated reporting.

Review Questions

• What are the main objectives of IFAC?
• How does IFAC contribute to improving financial reporting transparency?
• Which areas do IFAC's international standards cover?

Related terms

Accrual Accounting:

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash transactions occur.

Financial Reporting Standards: Guidelines that dictate how financial statements should be prepared and presented.

Ethics in Accounting: Principles that guide the conduct and decision-making process of accountants to ensure integrity, objectivity, and professionalism.