IFAC calls for stronger governance to rebuild trust in business

By Andrew Harbison, CA Today

21 June 2017

The International Federation of Accountants (IFAC) say that rebuilding public trust is “critical” to increase global economic growth.

The global accountancy body released ‘Build Trust. Inspire Confidence.’, a paper with actionable points which IFAC believes will help “both support the global economy and the G20’s 2017 objectives.”

The paper calls for “stronger governance for trust and confidence in business and government” from all G20 countries and invested stakeholders ahead of the G20 Summit 2017 in Hamburg next month (July).

“Rebuilding trust in the global economy and financial systems is critical to inspiring the confidence the world needs for sustained economic growth. Especially in these uncertain times, stakeholders with a passion for transparent, accountable governance must work together,” said IFAC Chief Executive Officer, Fayez Choudhury.

“Individuals and institutions must be empowered by strong governance; fortified by a consistent, transparent regulatory environment; and enabled by access to a high-speed, secure digital environment.”

IFAC’s 10 actionable points for the G20

  1. Collaborate to tackle corruption and advance responsible conduct.
  2. Create a secure and digital-ready investment environment across the G20 countries.
  3. Embrace integrated reporting in all G20 countries.
  4. Strengthen governance in the public and private sectors.
  5. Enhance public sector financial management.
  6. Create an environment for SME growth and inclusiveness.
  7. Collaborate for a coherent international tax system.
  8. Create consistent, transparent global regulatory environment.
  9. Make regulation smarter, and more effective in G20 countries.
  10. Implement internationally-accepted standards to enhance confidence, growth, and stability in the global economy and financial system.  

Source: IFAC

Rachel Grimes, IFAC President, said: “Public trust is essential for strong capital markets and economies.

“Inspiring confidence requires transparent, accountable institutions that deliver long-term, innovative solutions.”

Earlier this year, IFAC released a study which found a link between the percentage of professional accountants in the workforce, and more favourable scores on the main global measures of corruption.

It also underlines that, while a strong accountancy profession does make a difference, there is a need for collaboration across the public and private sector to enhance public trust in big business.


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