The International Accounting Standards Board
(IASB) and the International Federation of Accountants (IFAC)
signed an agreement to strengthen their co-operation in developing
private and public sector accounting standards.

The IASB said that as many International
Public Sector AccountingStandards (IPSASs) are primarily drawn from
IFRS, the signed agreement represents a further commitment to
strengthen the co-operation between the two boards, with a view to
ensuring greater consistency in standard-setting activities.

The memorandum of understanding is said to
also acknowledge the ongoing working relationship between the IASB
and the International Auditing and Assurance Standards Board
(IAASB), which comes under IFAC.

IASB chairman Hans Hoogervorst said the
ongoing financial crisis has shown the importance of transparency
in financial reporting by both private and public sector

“This agreement strengthens the already close
ties between the IASB and the IFAC and will serve as a platform for
further co-operation,” he said.

IFAC chief executive Ian Ball said the
sovereign debt crisis has exposed the risk to financial stability
from poor quality financial reporting by governments and
demonstrated that transparency is a prerequisite for

“This agreement accelerates the existing
cooperation between the two boards and enhances the IPSASB’s
ability to continue to develop high-quality standards,” he