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International Federation of Accountants

• What sort of medical facilities are available for signed by sixty-three accountancy bodies in forty-nine
Americans? countries. Its original terms of reference emphasized (1)
• What languages are used? the promotion of harmonized accounting standards, that
is, measurement and disclosure standards, and (2) the
• What holidays are observed in the country?
development of harmonized professional standards, such
• What special rules about traffic accidents exist? as auditing, education, and ethical standards. This duality
• What is the situation regarding religious obser- of purpose placed IFAC in potential conflict with the
vances? International Accounting Standards Committee (IASC),
whose mission also embraced accounting harmonization.
To minimize duplication of effort, both organizations
INTERNATIONAL TRADE
agreed in 1982 to have a uniform membership in which
COMMISSION
IASC would concentrate on promoting harmonized
The International Trade Commission is not technically a
part of the U.S. government but rather an independent accounting standards while IFAC would focus on promot-
agency. Its principal task is to determine whether imports ing harmonized professional standards.
are injuring any domestic industry. The commission ana-
lyzes the manner in which the domestic industry relates to MEMBERSHIP
the international industry. It also investigates and reports Support for IFAC’s quest to develop a truly international
on tariff and foreign trade matters. Upon request, it and cohesive accountancy profession is reflected in its
reports to Congress and/or the president. expanded membership of one hundred twenty-three pro-
It studies the methods by which the international fessional accountancy bodies in eighty-seven countries. As
laws operate. It investigates claims that are submitted of 1999, IFAC recognizes three types of members:
regarding conflicts of opinions within the dependent
trade’s areas. 1. Full membership is open to national accountancy
organizations that have a professional standard-
The commission was organized in 1916. Its original
setting role and that possess rigorous credentialing
title was the U.S. Tariff Commission; it received its cur-
standards.
rent title in 1975. The commission is headed by six com-
missioners who are appointed by the president with the 2. Associate membership is confined to national
approval of the U.S. Senate. accountancy organizations that do not meet full
membership criteria.
SEE ALSO International Investment; International Mar-
keting; International Trade 3. Affiliate membership is open to international organ-
izations that have an interest in the accountancy
profession.
BIBLIOGRAPHY
Ball, Donald A. et al. (2006). International Business: the challenge
of global competition (10th ed.). Boston: McGraw-Hill/Irwin. ORGANIZATION
Hill, Charles W. L. (2007). International Business: Competing in IFAC’s governance structure is made up of the following
the Global Marketplace (6th ed.). Boston: McGraw-
Hill/Irwin. components:
Morrison, Janet (2006). The International Business Environment: 1. An Assembly comprised of representative from each
global and local marketplaces in a changing world (2nd ed.). member accountancy organization. Meeting every
New York: Palgrave Macmillan.
two and half years, it is responsible for electing
Council and approving changes to IFAC’s constitu-
Dorothy A. Maxwell tion.
2. A Council consisting of elected representatives from
eighteen countries serving two-and-a-half-year
terms. It establishes broad policies, appoints various
INTERNATIONAL
technical committees and task forces, and oversees
FEDERATION OF IFAC’s operations through an Executive Committee.
ACCOUNTANTS 3. An Executive Committee comprised of a president,
The International Federation of Accountants (IFAC) was deputy president, director general, and three other
officially constituted in October 1977 at the World Con- members of Council. It is responsible for the imple-
gress of Accountants in Munich. Its constitution was mentation of Council’s established policies.

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