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9The Year in ReviewHighlights on the RevisionProject to Clarify theInternational EducationStandardsIES 1, ENTRY REQUIREMENTS FOR PROFESSIONALACCOUNTING EDUCATION PROGRAMSIn addressing the public interest concern ofensuring competent professional accountants theIAESB approved IES 1, Entry Requirements forProfessional Accounting Education Programs, whichprescribes the principles to be used when settingand communicating educational requirementsfor entry to professional accounting educationprograms. This IES is intended to protect the publicinterest by both establishing fair and proportionateentry requirements that help those individualsconsidering professional accounting education makeappropriate career decisions-and ensuring thatrequirements for entry to professional accountingeducation are not misrepresented.IES 1 explains the principle of allowing flexibleaccess to professional accounting educationprograms under the auspices of an IFAC memberbody, while ensuring that aspiring professionalaccountants have a reasonable chance of successfulcompletion of professional accounting educationprograms. IES 1 becomes effective from July 1,2014.IES 5, INITIAL PROFESSIONAL DEVELOPMENT –PRACTICAL EXPERIENCEIn meeting the public’s expectation thatprofessional accountants apply their experience andknowledge in carrying out their roles, the IAESBapproved IES 5, Initial Professional Development –Practical Experience. IES 5 prescribes the practicalexperience required of aspiring professionalaccountants by the end of Initial ProfessionalDevelopment (IPD). This IES refers to practicalexperience as workplace and other activities thatare relevant to developing professional competence.Practical experience during IPD builds on generaleducation and programs of professional accountingeducation. The revised IES 5 requires IFACmember bodies to establish a preferred methodto measure practical experience by one of thefollowing approaches: input-based, output-based,or a combination of input- and output-based. Inaddition, IFAC members shall require practicalexperience of aspiring professional accountants tobe: conducted under the direction of a practicalexperience supervisor; recorded in a consistent formand supported by verifiable evidence; reviewedperiodically by the practical experience supervisor;and assessed for successful completion. Theserequirements address the public’s expectationthat a professional accountant has completed aprofessional accounting education program andhas obtained sufficient practical experience. IES 5becomes effective from July 1, 2015.IES 6, INITIAL PROFESSIONAL DEVELOPMENT –ASSESSMENT OF PROFESSIONAL COMPETENCEThe public interest is protected, and thecredibility of the profession is enhanced, whenonly those individuals who meet the profession’scompetence requirements are permitted to beprofessional accountants. To support this positionthe IAESB has approved IES 6, Initial ProfessionalDevelopment – Assessment of ProfessionalCompetence. This revised IES prescribes therequirements for the assessment of professionalcompetence of aspiring professional accountantsthat need to be achieved by the end of IPD. Morespecifically, the revised standard requires IFACmember bodies to formally assess the achievementof competence by the end of IPD while recognizingthat the assessment needs to be reliable, valid,equitable, transparent, and sufficient. In addition,IES 6 requires that IFAC member bodies basethe assessment of professional competence ofaspiring professional accountants on verifiableevidence. Although the assessment of professionalcompetence during IPD is the responsibility of IFACmember bodies, other stakeholders may providesubstantive input into assessment activities. IES 6becomes effective from July 1, 2015.IES 7, CONTINUING PROFESSIONAL DEVELOPMENTThe IAESB recognizes that ContinuingProfessional Development (CPD) is an importantelement in maintaining public confidence and trust.Because professional accountants have a continuingduty to maintain professional competence to ensure2012 IAESB ANNUAL REPORT

10that clients, employers, and relevant stakeholdersreceive competent professional service the IAESBhas approved the clarified IES 7, ContinuingProfessional Development. IES 7 prescribes the CPDfor professional accountants required to developand maintain their professional competence so as toprovide high quality services to clients, employers,and other stakeholders. The clarified IES 7 continuesto require the IFAC member body to promote andfacilitate CPD while confirming the recommendedapproaches for measuring mandatory CPD activity.IFAC member bodies are also required to monitorthe CPD of professional accountants and to enforcesanctions where needed. IES 7 becomes effectivefrom January 1, 2014.Each of these revised IESs is addressed to IFACmember bodies that have responsibility in areas of:(a) setting and communicating entry requirements;(b) assessment of learning outcomes; (c) practicalexperience; and (d) continuing professional2012 IAESB ANNUAL REPORTdevelopment. In addition, these IESs will be helpfulto educational organizations, employers, regulators,government authorities, and any other stakeholderswho deliver and support provision of professionalaccounting education programs.EXPOSURE DRAFTSThe IAESB has also continued its work torevise and redraft the remaining IESs. During2012 the IAESB approved for public exposure thefollowing Exposure Drafts: IES 2, Initial ProfessionalDevelopment – Technical Competence, IES 3, InitialProfessional Development – Professional Skills, IES4, Initial Professional Development – ProfessionalValues, Ethics, and Attitudes; and IES 8, ProfessionalDevelopment for Engagement Partners Responsiblefor Audits of Financial Statements. The releaseof the Exposure Drafts as a set has enabled ourreaders to appreciate the breadth and depth of

11learning outcomes needed to achieve professionalcompetence.The IAESB has received a substantial numberof responses on these Exposure Drafts frominterested stakeholders, including: IFAC memberbodies; members of the forum of firms; regulators;professional organizations; and individuals andother organizations. These responses have assistedthe Board in improving the clarity of the standardsand in increasing their relevance with regards tothe development, delivery, and assessment ofprofessional accounting education. The IAESBexpects that the finalization of the revised IESs 2, 3,and 4 will occur during 2013 while IES 8 is expectedto be finalized in 2014.Development of Adoption andImplementation GuidanceThe IAESB has also contributed to theadoption and implementation of its IESs throughits outreach activities, pronouncements, andtechnical advice. In March, Professor Peter Wolnizerand Professor Aileen Pierce (IAESB ConsultativeAdvisory Group (CAG) Chairperson) attended theopening ceremonies of the National Association ofAccounting and Business Administration Schools(ANFECA) Annual Congress to witness the InstitutoMexicano de Contadores Publicos’ recognition ofANFECA for “University Academic Heritage”.This recognizes ANFECA’s contribution to thedevelopment of professional accountants in Mexico.In August Professor Peter Wolnizer and Mr. FabioMoraes da Costa (CAG member) presented at theBrazil Accounting Congress on the InternationalEducation Standards (IESs) and the importance ofContinuing Professional Development. Both of theseevents enabled the IAESB to engage educationalrepresentatives on local issues in the area ofprofessional accounting education.The IAESB has also published an article in Issuesin Accounting Education that discusses the workof the IAESB and explains the Board’s view onconvergence in the area of professional accountingeducation.CommunicationsFinally, the IAESB has also made importantprogress in improving the awareness of itspronouncements and projects by participatingin meetings and conferences with memberbodies, regulators, regional organizations, andthe academic community. The IAESB Chair andother IAESB representatives have presentedupdates during 2012 on the IES revision projectat conferences and meetings, inclucing theAmerican Accounting Association 2012 AnnualMeeting, the European Accounting Association35th Annual Congress, and the UNCTAD/ISARand IFRS Foundation Accounting Education Forum‑.In addition the IAESB has responded by commentletter to IFAC’s exposure draft on the Statements ofMembership Obligations.Oversight and AdviceFinally, the IAESB also acknowledges theoversight and advice that the PIOB has providedduring 2012. The PIOB’s observations at the 2012IAESB and IAESB Consultative Advisory Group (CAG)meetings provided valuable independent perspectiveon the manner in which the board has followedits stated due process activities and recognized thepublic interest in developing the IESs.The IAESB has also continued to benefit fromthe leadership of the independent chair of theIAESB CAG and the advice it receives from theCAG members at all stages of the Board’s projects.Further details on the CAG’s activities during 2012are set out in the “Report of Aileen Pierce, Chair ofthe IAESB Consultative Advisory Group.”SYLVIA MELJEM OF THEINSTITUTO MEXICANO DECONTADORES PUBLICOS(IMCP),SPEAKING AT THE EDUCATIONFORUM, SPONSORED BYIMCP, IAESB, AND THENATIONAL ASSOCIATION OFACCOUNTING AND BUSINESSADMINISTRATION SCHOOLS.2012 IAESB ANNUAL REPORT

12International AccountingEducation Standards Board(January 1, 2012 to December 31, 2012)TermEndingCountryTechnical AdvisorsChris Austin*2013United KingdomAdrian PulhamKazuo Hiramatsu2012JapanKoichi InoueEdward Kieswetter*2013South AfricaLaine KatzinPeter Wolnizer,* Chair2014AustraliaMohammed Saleem Kharwa,* Deputy Chair2013South AfricaAmanda Jane OlivierKim Langfield-Smith2013AustraliaJayne FreemanBoard MembersPublic MembersNon-PractitionersSylvia Meljem2012MexicoJose A. EcheniqueDennis Reigle*2014United StatesGary PrevitsClare Minchington2014United KingdomClare MorleyJean-François Bélorgey*2012FranceSusan FlisMarcelo Canetti2013ArgentinaGreg OwensAnn Kilbride*2012United KingdomGareth WellingsHans Christian Krogh**2013DenmarkRobert TaylorAnne-Marie Vitale**2013United StatesSophie Gates-SumnerEileen Walsh2014United StatesAndrew BarryKristrún Helga Ingólfsdóttir2012IcelandAnette HedbernNambayo Kalaluka2013ZambiaMubita AnakokaThomas Orth2013GermanyWolfgang BöhmJaydeep Narendra Shah2014IndiaSubodh KumarAgrawalPractitionersObserversAileen Pierce, IAESB Consultative Advisory Group Chair, IrelandAnne Loft, International Association of Accounting Education and Research, United StatesYoseph Asmelash, United Nations Conference on Trade and Development, SwitzerlandIAESB StaffJim Sylph, Executive Director, Professional Standards and External RelationsDavid McPeak, Senior Technical ManagerStephenie Luciani, Executive Assistant*Member of IAESB Steering Committee** Partial Year2012 IAESB ANNUAL REPORT

13Report Of Aileen Pierce, Chair of theIAESB Consultative Advisory GroupIt was a great honor for me to take over as chairof the IAESB’s Consultative Advisory Group (CAG)effective January 1, 2012.Objective and Scope ofActivitiesI am pleased to report the work of the IAESBCAG during 2012 has continued to focus on theIAESB’s initiative to revise and redraft its eightIESs. In providing directional advice on the board’scurrent work plan, technical advice on the revisionof its standards, and strategic advice on thedevelopment of the 2014–2016 IAESB Strategy andWork Plan, the CAG continues to meet its objectiveof providing advice to the IAESB as it advances itsagenda.Meetings and MembershipThe 2012 CAG meetings were held in Dublinin February and New York in September and viateleconference in April. As chair, I also attendedall IAESB meetings and three IAESB SteeringCommittee teleconferences during the year toobserve how the CAG’s advice was considered bythe board.The CAG’s membership remained at 16organizations during 2012.Key Highlights for 2012ADVICE ON PROJECTSThe CAG has continued to contribute advice onissues relating to revising and redrafting all eightIESs. At the request of the CAG, all IESs are: (1)principles-based; (2) clarified based on the IAESBdrafting conventions on clarity; and, (3) consistentwith concepts of the Framework for InternationalEducation Standards for Professional Accountants(2009). Specifically, the CAG’s advice has led toimprovements in developing the following: Final versions of IESs 1, 5, and 6 (June–October); Exposure Drafts for IESs 2, 3, 4, and 8 (June);and Guidance on the implementation of IES 8 andon the implementation of a learning outcomesapproach to professional accounting education.ADVICE ON THE IAESB’S 2014–2016 STRATEGYAND WORK PLANCAG members provided input into thedevelopment of the 2014–2016 IAESB Strategy andWork Plan. More specifically, the CAG contributedto identifying emerging educational issues andtrends, defining strategic priorities, and articulatingthe IAESB’s value proposition. This enabled theIAESB to develop a preliminary view on its strategicpriorities and, in particular, which projects andactivities it should consider for the 2014–2016period.CommunicationsThe CAG also provided advice on the 2012IAESB Communications Plan. This advice has ledto improvements in clarifying the communicationsmessages and identifying target audiences. TheCAG also provided advice on the MonitoringGroup’s review and IFAC’s review of the Statementsof Membership Obligations.In the period covered by this report, I andCAG members have increased awareness of theIAESB’s activities by making presentations atinternational events (e.g., 35th Annual EuropeanAccounting Association Congress, 19th BrazilianCongress of Accounting, and the Accountingand Finance Association of Australia and NewZealand 2012 Conference) and by being presentat additional events (e.g., opening ceremonies ofNational Association of Accounting and BusinessAdministration School’s Annual Congress;Fédération des Experts Comptables Européens’ 25thAnniversary event; and the Institute of CharteredAccountants in England and Wales’ hosted dinner).ConclusionI would like to thank the members of the CAGfor their commitment and contribution to the IAESBagenda. I would also like to thank the members ofthe IAESB and, in particular, the chairs of the IAESBtask forces for the efficient way in which the variousissues and draft documents are presented to theCAG.Finally, I would like to express my thanks to thestaff of IFAC for their excellent support of the CAG.2012 IAESB ANNUAL REPORT

For more information about the IAESB, please contact:David McPeakSenior Technical Manager, IAESBDavidMcPeak@ifac.orgwww.iaesb.org

for entry to professional accounting education programs. This IES is intended to protect the public interest by both establishing fair and proportionate entry requirements that help those individuals considering professional accounting education make appropriate career decisions-and ensuring that requirements for entry to professional accounting