november 2008 examination - The Malaysian Institute Of Certified ...

PROFESSIONAL NEWSIFAC UpdateNew IFAC Guidance SupportsProfessional Accountants in Businessin Promoting Better InvestmentDecisionsRecognising that professional accountants in business playan important role in helping their organisations deliverlong-term value, the International Federation ofAccountants (IFAC) Professional Accountants in Business(PAIB) Committee has released new guidance on the use ofdiscounted cash flow analysis and net present value inevaluating investments. Entitled Project Appraisal UsingDiscounted Cash Flow, this guidance was released as partof the PAIB Committee's new program to developInternational Good Practice Guidance on financial andmanagement accounting topics.Discounted cash flow analysis and estimating the netpresent value of cash flows involve fundamental principlesof finance that support disciplined financial managementin organisations. Professional accountants in businesshave a role in promoting and explaining the importanceof these principles in their organisations, particularlywhere the connections between the application of financialprinciples and related financial theory are not easilyunderstood or accepted."This new guidance will help professionalaccountants in business to promote the importance ofgenerating long-term value in their organisations," statesEdward Chow, Chair of the PAIB Committee. "Professionalaccountants have a significant role in ensuring that theirorganisations focus on decisions that maximize expectedvalue, rather than on their short-term impact on reportedearnings. Companies with good records of value creationgenerally have better shareholder and investoracceptance."Final Preface to International Good Practice GuidanceTogether with the guidance, the PAIB Committee hasreleased the final Preface to IFAC's International GoodPractice Guidance. The Preface sets out the scope, purpose,and due process of the committee's new International GoodPractice Guidance, which cover management accounting,financial management, and broader topics in whichprofessional accountants in business are engaged.Project Appraisal Using Discounted Cash Flow andthe Preface can be downloaded free-of-charge from theIFAC online bookstore at http://www.ifac.org/store. ThePAIB Committee welcomes feedback on both documents,which can be emailed to stathisgould@ifac.org.(Source: www.ifac.org)IFAC Appoints Alta Prinsloo Directorof OperationsAlta Prinsloo, CA (SA) has been named Director ofOperations of the IFAC, with effect from, January 1, 2009.Ms. Prinsloo is currently Deputy Director of the InternationalAuditing and Assurance Standards Board (IAASB), anindependent standard-setting board under the auspices ofIFAC. She joined the organisation as an IAASB SeniorTechnical Manager in September 2002.As Director of Operations, Ms. Prinsloo will overseeIFAC's planning, budgeting, and financial managementand accounting processes, including supporting theactivities of IFAC's Planning and Finance Committee andAudit Committee. She will direct the organisation's day-todayoperations, play a key role in the strategic planningprocess, oversee its human resources and informationtechnology activities, and manage preparations for IFACBoard and Council meetings."Alta's strong international experience, together withthe leadership and management skills she has demonstratedwith the IAASB, will be of great value to IFAC as she assumesthe role of Director of Operations," states Ian Ball, IFAC ChiefExecutive Officer. "In that capacity, Alta will play a centralrole in the effective management and operations of a globalorganisation with more than 150 member organisationsworldwide."Prior to joining IFAC, Ms. Prinsloo was TechnicalDirector of the South African Institute of CharteredAccountants, an IFAC member body, where she managedthe Technical Department and oversaw the convergence ofSouth African accounting and auditing standards withinternational standards. She also served as a technicaladvisor to the South African member of the IAASB fromJanuary 2001 to March 2002.Alta Prinsloo will assume the position later this year,after she has completed her obligations with respect to workon the IAASB Clarity project. She will take over from StephenWalker, who has served as IFAC Director of Operations sinceSeptember 2002 and will be returning to his home countryof New Zealand."Stephen has played a very significant role instrengthening IFAC's strategic planning and financefunctions and improving our organisation's efficiency. Weare grateful for his many contributions to IFAC, and we wishhim all the best for the future," states Mr. Ball.(Source: www.ifac.org)30 | The Malaysian Accountant | August 2008 www.micpa.com.my