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interest by setting high quality ethical standards forprofessional accountants and by facilitating theconvergence of international and national ethicalstandards, thereby enhancing the quality and consistencyof services provided by professional accountants. Inconsidering which new projects and activities should beundertaken, the IESBA conducted a survey of interestedparties, including accountants in public practice (fromlarge and small firms), accountants in business, regulators,IFAC members and associates, ethical standard setters andacademics, to solicit views on matters that the IESBA shouldconsider in the next few years to achieve its objective."In addition to suggestions for specific projects, therewas a strong message from the approximately 120 surveyrespondents that the IESBA should place more emphasis onour convergence objective," states Richard George, IESBAChair. "The IESBA, therefore, plans to hold four regionalforums, starting in late 2008, with the objective of gaininga better understanding of the steps necessary to facilitateconvergence of international and national ethical standardsand achieve greater global acceptance of the Code."(Source: www.ifac.org)IFAC Seeks Comments on ProposedPreface to New ManagementAccounting Guidance and ReleasesGuidance on Developing Codes ofConductProfessional accountants in business worldwide will getadded assistance from the International Federation ofAccountants (IFAC) in the form of new internationalprinciples-based good practice guidance. A newly releasedexposure draft (ED), Preface to IFAC's InternationalManagement Accounting Statements and International GoodPractice Guidance, developed by IFAC's ProfessionalAccountants in Business (PAIB) Committee, sets out theobjective, scope and due process of two new types ofguidance: International Management AccountingStatements and International Good Practice Guidance. ThePAIB Committee seeks input on the approach torepresenting good practice to professional accountants inbusiness and the proposed document types.Together with the draft Preface, the PAIB Committeehas released new guidance on developing codes of conductand has issued an exposure draft of the first InternationalManagement Accounting Statement.The International Management Accounting Statementsand International Good Practice Guidance establishfundamental principles and provide supporting applicationguidance to reflect good practice. In addition, the newguidance signposts other sources of information, such asthose developed by national professional accountancybodies. The guidance documents may also serve as aleadership tool that professional accountants can use inpromoting sound financial and management accountingpractices within their organisations."The release of the proposed Preface represents thestart of a significant work program for the committee," saysEdward Chow, Chair of the PAIB Committee. "The newpronouncements will contribute to better decisions inorganisations and enhance the level of support to andcompetence within the global community of professionalaccountants in business. I encourage professionalaccountants in business to use these pronouncements topromote good practices in the organisations in which theywork."New Guidance on Developing Codes of ConductThe PAIB Committee has released the first InternationalGood Practice Guidance, Defining and Developing an EffectiveCode of Conduct for Organisations. This guidance will assistprofessional accountants and their organisations indeveloping and implementing a code of conduct within avalues-based culture. It can be downloaded free-of-chargefrom the IFAC online bookstore at http://www.ifac.org/store.The PAIB Committee welcomes further feedback on thisdocument during the exposure period for the Preface.Exposure Draft on Project Appraisal UsingDiscounted Cash FlowIn addition to the above, the PAIB Committee has alsoissued an ED of a proposed International ManagementAccounting Statement, entitled Project Appraisal UsingDiscounted Cash Flow. The proposed InternationalManagement Accounting Statement aims to supportprofessional accountants in business in applying andpromoting the use of discounted cash flow and net presentvalue to evaluate investments. It sets an internationalbenchmark for using discounted cash flow in projectappraisal and provides principles that reflect widelyaccepted good practice, supported by guidance to facilitatetheir application. The ED asks for feedback on both thecontent and approach.Looking AheadOver the next year, the PAIB Committee plans to developproposed principles-based pronouncements on internalcontrol from a risk management perspective, using costinformation effectively, and enterprise governance. ThePAIB Committee is also using the proposed InternationalManagement Accounting Statement on Project AppraisalUsing Discounted Cash Flow to solicit feedback on futuretopic selections to support this document.(Source: www.ifac.org)52 | The Malaysian Accountant | June/August 2007 www.micpa.com.my