In a profession shaped by rapid technological transformation, demographic shifts and evolving public expectations, the dual challenges of retaining qualified professionals and driving institutional innovation are converging with increasing urgency. Within the Mediterranean region—marked by cultural richness, structural diversity, and economic asymmetries—these challenges demand coordinated, creative, and context-sensitive responses.
For small and medium-sized accountancy practices (SMPs), which represent a large share of the professional ecosystem in the Mediterranean, talent retention cannot rely solely on conventional levers such as job stability or seniority-based promotion. These mechanisms, while historically effective, are increasingly misaligned with the aspirations of newer generations of professionals who seek purpose, autonomy, and merit-based recognition.
Emerging models of remuneration and career development—particularly those linking individual contribution to profitability, client impact, or innovation capacity—are gaining traction. These models reward initiative, foster accountability, and encourage a stronger entrepreneurial mindset within firms.
Such approaches can be especially effective when they introduce transparency and predictability into the career path, while also recognising the collaborative nature of the profession. They help create environments where professional growth is not constrained by rigid hierarchies, but aligned with demonstrable value creation.
While internal incentives are critical, the sustainability of the profession also depends on the strength and adaptability of its institutional backbone. Professional Accountancy Organisations (PAOs) across the Mediterranean face increasing pressure to deliver continuing education, digital infrastructure, and ethical oversight in a cost-efficient and locally relevant manner.
A promising avenue lies in fostering structured partnerships among PAOs within the region. By pooling pedagogical resources, sharing digital platforms, and co-developing standards, PAOs can accelerate their own transformation while reducing duplication and fragmentation. These alliances strengthen both national ecosystems and regional coherence.
Crucially, such partnerships also allow smaller or emerging PAOs to benefit from the experience and assets of more established bodies, levelling the playing field and reinforcing the collective capacity of the profession. This is not merely a question of technical collaboration; it is a strategic imperative for preserving public trust and delivering value to members.
The Mediterranean context brings particular nuances to these challenges. The region faces a dual reality: on one hand, vibrant centres of professional excellence and cross-border cooperation; on the other, structural constraints such as underinvestment in education, limited digital reach, or emigration of skilled professionals.
To address these asymmetries, an integrated response is needed—one that combines local innovation with regional solidarity. This includes:
The retention of talent and the renewal of institutions are not parallel objectives. They are two sides of the same coin. Professionals are more likely to stay and thrive in a system that invests in their growth, values their input, and connects their success to a broader mission. Likewise, PAOs are more resilient when they are rooted in a dynamic, inclusive, and forward-looking profession.
The FCM calls for a renewed Mediterranean vision—one that unites innovation with identity, and local dynamism with regional collaboration. It is through this convergence that the accountancy profession can continue to serve the public interest, nurture the next generation of leaders, and remain a vital actor in the sustainable development of the region.
Interview with Jean Bouquot, President of the International Federation of Accountants (IFAC)
"The Certified Accountant is the most trusted player in the tax ecosystem"
On the sidelines of the UCALP congress held in Lisbon, the President of the world’s most important accountancy organisation provided an overview of the role of the profession in a context of geopolitical crisis and polarisation.
Interview by Nuno Dias da Silva | Photos by Raquel Wise
Contabilista – You assumed leadership of IFAC in November 2024. The presidency of the world’s largest accountancy organisation moved from Morocco to France, i.e., from the African to the European continent. Does this represent a new strategy or will there be continuity in the major objectives?
Jean Bouquot – The presidency of IFAC is a two-year mandate and the transition is always defined by continuity. I served as IFAC Vice-President for two years during Asmaa Resmouki's term, and our current Vice-President, Taryn Rulton, will work with me for two years. This shows how well planned the leadership succession is. Moreover, as Chair of the Board, I work on behalf of the entire profession, as do all the other Board members, regardless of their country of origin.
Contabilista – IFAC is the global voice of millions of Certified Accountants worldwide. Do you feel the weight of responsibility in being the face of an entity representing 180 professional accountancy organisations from 135 countries?
Jean Bouquot – I feel the weight of responsibility to the profession. Being President of IFAC is an incredible honour but requires total commitment in return. Let me add that although I represent IFAC personally with full dedication, I have the pleasure of working with 22 colleagues on the Board who embody the profession’s diversity and global nature in a way no individual could.
Contabilista – "Global", "influential", and "trusted" are the three key words of IFAC’s mission. Do you believe there is global recognition of the profession’s public interest role?
Jean Bouquot – Absolutely. Let me give one example. A recent IFAC report, in partnership with ACCA and the OECD, concluded that 68% of respondents trust information provided by Certified Accountants and tax advisers. This makes us the most trusted players in the tax ecosystem — more so than other important actors, including political leaders. We have earned the public’s trust, and that amplifies our influence in discussions on public financial management. But we must always continue to deserve that trust.
Contabilista – The Portuguese Institute of Certified Accountants (OCC) has been an associate member of IFAC since 2012 and a full member since 2016. What contributions and exchange of ideas do you expect with the Portuguese institution led by Bastonária Paula Franco?
Jean Bouquot – OCC has already achieved great things as part of the IFAC "family". It is actively engaged with various entities in Portugal, including government authorities and regulators. It is working with other accountancy organisations in Europe and beyond to support their goal of joining IFAC, including one of our newest members, the Consejo General de Economistas de España. OCC also plays an active role in three regional organisations: CILEA, the Mediterranean Federation of Accountants (FCM), and the UCALP. As host of two IPSASB meetings, OCC is gaining a reputation as a strong supporter of international standard-setting. All this signals great things to come in the relationship between IFAC and OCC, and I look forward to working closely with Bastonária Paula Franco during my mandate.
Contabilista – UCALP represents accountants from seven Portuguese-speaking countries and territories, totalling over half a million professionals. In what ways can this organisation be an asset within IFAC?
Jean Bouquot – One of UCALP's strengths is its diversity. The geographic, demographic, and economic variety within the Lusophone world enriches member discussions in ways that benefit all participants. Part of UCALP's value to the IFAC "family" lies in the opportunity to engage with the vibrant professional intersection showcased in UCALP's impactful, well-organised, and well-attended events. IFAC, and the profession as a whole, are stronger when our members are more closely connected and united in purpose and action — and this is one of the key outcomes of UCALP's collaborative work.
Contabilista – Before the G20 summit in Rio de Janeiro in November, IFAC called on major economies to prioritise sustainability, transparency, and governance to achieve the UN's Sustainable Development Goals by 2030. Do you believe enough is being done to promote a comprehensive sustainability reporting and assurance ecosystem?
Jean Bouquot – Within the profession, we understand the importance of the 2030 Agenda and the need for high-quality sustainability-related information. We see this as a core part of the profession's public interest mandate. As such, we are strongly committed to moving forward. This includes ongoing advocacy for the adoption and implementation of IFRS S1 and S2, and close involvement with sustainability standards recently finalised by the IESBA and IAASB. We want to ensure that all who use the standards can implement them effectively, and this requires collaboration across the entire reporting and assurance ecosystem. We also believe that regulators should hold unqualified accountants to the same standards and supervision as qualified professionals when applying the standards. That said, there are still many loose ends and some global resistance to the ESG pillars. However, the importance of high-quality information and its role in value creation and long-term thinking remain. We will therefore continue to advocate for high-quality sustainability reporting and assurance in our engagement with the G20 and do all we can to ensure the profession rises to the challenge.
Contabilista – How are organisations, depending on their size, managing the complexity of global sustainability reporting, which is becoming increasingly widespread?
Jean Bouquot – We are seeing a promising trend of professional organisations supporting their members through continuous development in sustainability-related services, including the OCC. These organisations are the first and most important source of support for members aiming to gain or update the qualifications required by the sustainability transformation. IFAC, in turn, works to support these professional organisations. We have also produced a wide range of reference materials and thought leadership on many aspects of sustainability, all available on our website.
Contabilista – The current times are far from peaceful: trade wars, a polarised world, and multiple global conflicts. Do you fear this instability and constant risk may spill over into the profession? Do global problems require local solutions?
Jean Bouquot – Geopolitical crises erode the diplomatic and commercial ties that hold the global economy together. This situation affects the profession, as we are consultants or part of companies across all countries and sectors. However, IFAC is an apolitical body, and the global profession can be a unifying and positive force in uncertain times. Global problems may require local solutions, but we can work towards greater global consistency and connectivity thanks to our ability to navigate technical and cross-cultural issues. We can lead our organisations toward greater resilience and better outcomes through trusted strategic advice. Fighting fraud, corruption, money laundering, tax evasion, greenwashing, and other illegal practices, as well as improving governance in both the public and private sectors, are key ways through which the profession can help enhance stability.
Contabilista – The unstoppable progress of artificial intelligence (AI) is affecting nearly all areas of society. Do you see this new era as a threat or an opportunity for the profession and its professionals?
Jean Bouquot – I do not wish to downplay the anxiety surrounding AI in our profession, but I am optimistic about its role for Certified Accountants and finance professionals. Its main impact will be to free us up to focus on higher-value areas such as advisory services, by automating lower-value tasks. This will enhance our relevance to clients and organisations. All of this depends on our ability to effectively adopt the technology. We must improve our digital skills to keep up with rapid changes in AI tools. Digital literacy is crucial, but we don’t all need to become data scientists! We should collaborate with other functions, such as IT, to complement our own expertise. And we must always consider our professional responsibilities in addressing emerging AI challenges, including cybersecurity, lack of transparency, and bias in AI models.
Contabilista – "Young Leaders Collective" is the name of IFAC’s latest advisory group, including representatives from several countries, among them Portugal. Is the profession attractive enough to draw in new generations entering the job market?
Jean Bouquot – The talented professionals in the Young Leaders Collective have shared their belief that the profession is well-positioned to attract future generations. They are eager to contribute ideas to IFAC on how to enhance the profession’s appeal, among other key topics on the profession’s agenda. The Collective is also developing recommendations for a global group of students and early-career professionals, beginning with a call to action in the coming weeks focused on sustainability. We are one of the most trusted professions in the world, and our role is extremely dynamic. We lead businesses, create sustainable value, advise large and small clients across sectors, provide assurance, and manage vast public and private sector budgets and programmes. But we must reclaim our narrative and tell that story!
Contabilista – At a time when there is much talk about the need to cultivate and foster ethical and socially responsible standards, do you believe the future is promising for the profession in this regard?
Jean Bouquot – One thing will remain constant: the indispensable role of our principle-based International Code of Ethics. The high standards of our profession and our unwavering commitment to integrity will remain unchanged. It is up to each individual to approach new challenges with an inquisitive mind. For example, we must recognise the potential of new technologies while remaining alert to unintended consequences. We must remain open to new research and developments that accompany the sustainability transformation. But this is not new. I have no doubt that we will rise to the occasion. We must also remember that working in the public interest is the profession’s permanent mission. That is what sets us apart from other service providers and is essential to the trust we bring to our clients and stakeholders. But this is not guaranteed; it requires ongoing attention. In this respect, IFAC’s role as the voice of the profession is crucial.
📌 The original Portuguese-language version was published in issue no. 299 (March 2025) of the OCC’s official monthly magazine “Contabilista”, available on the OCC’s website: 🔗 https://www.occ.pt/pt-pt/publicacoes
A Global Imperative for a Regional Commitment
On 13 March 2025, the IFAC International Federation of Accountants released revised versions of the International Education Standards (IES) 2, 3, 4 and 6. These revisions represent a decisive step in embedding sustainability into the core competencies of future professional accountants.
The FCM - Fédération des Experts Comptables Mediterranéens / Federation of Mediterranean Accountants , representing professional accountancy organisations across the Mediterranean, fully supports this initiative and sees it as an opportunity to align educational practices with global priorities while addressing the unique realities of our region.
Sustainability Embedded in Professional Competence The revised standards deliver a clear message: sustainability is no longer an optional topic — it is a central theme of professional development. Key enhancements introduced by the revisions to IES 2, 3 and 4 include:
These improvements are particularly relevant for jurisdictions in Southern Europe, North Africa and the Middle East, where economic transformation, environmental resilience, and social inclusion are urgent priorities. For example, in Tunisia, the integration of ESG metrics into public reporting frameworks is gaining momentum, while in Greece, climate-related financial disclosures are being adopted by large and mid-sized enterprises alike.
Modernising Assessment: IES 6 and the Principles for Fair and Effective Evaluation The revised IES 6 introduces two new principles — authenticity and integrity — and strengthens the principle of equity, all of which are crucial in ensuring the credibility of professional assessments. The standard provides updated guidance on how assessments should reflect real-world scenarios, be fair and inclusive to all candidates, and safeguard against breaches of exam integrity, especially in hybrid and remote formats.
In countries such as Albania, where digital infrastructure and access to resources may vary significantly between urban and rural areas, the focus on equity and accessibility is particularly timely. The standard's flexibility also allows organisations to tailor assessment formats — including simulations, case studies, or supervised workplace evaluations — to their local context and available resources.
Mediterranean Challenges and Shared Opportunities The Mediterranean region is marked by a unique diversity: varying levels of economic development, differing regulatory environments, and a mixture of mature and emerging accountancy professions. Yet, the challenges of climate adaptation, responsible governance, and inclusive growth are shared.
FCM recognises this diversity as a strength. By promoting the adoption of the revised IESs, the Federation aims to foster a generation of accountants capable of navigating sustainability risks, supporting ethical business practices, and contributing to national and regional development goals.
For example, in Morocco, green finance initiatives are already being integrated into professional development pathways. In Portugal, digital and sustainability reporting skills are being included in national CPD frameworks. These are steps in the right direction — but more systemic alignment is needed.
The Role of FCM: A Regional Enabler and Global Voice FCM stands ready to support its members through the transition to the revised standards, with actions including:
As a recognised regional platform, FCM also commits to channelling feedback from its members to IFAC, ensuring that the global standards reflect lived realities and implementation challenges across the Mediterranean.
Conclusion: A Profession Renewed by Purpose The revised IESs affirm a powerful truth: the accountancy profession must evolve to remain relevant and trusted. Integrating sustainability and modernising assessment processes are essential to that evolution. FCM welcomes this transformation and calls on its members — from France to Egypt, from Türkiye to Portugal — to embrace these standards not only as a compliance requirement, but as a blueprint for a renewed, ethical, and future-ready profession.
The Mediterranean region, with its diverse economies and growing financial interconnections, is increasingly impacted by global trends in accounting ethics, governance, and sustainability.
This article provides an overview of the key topics on the future of the accounting profession, with a strong focus on sustainability reporting, ethical challenges, and the role of professional accountants in ensuring transparency and trust, and analyses their relevance for accountants in the Mediterranean region, where businesses are facing heightened regulatory expectations and evolving stakeholder demands.
Sustainability: The New Imperative for Accountants
Sustainability reporting and assurance is an area where professional accountants are expected to play a critical role. As businesses, investors, and regulators demand higher transparency on Environmental, Social, and Governance (ESG) issues, financial professionals must adapt to emerging global reporting frameworks, such as those set by the International Sustainability Standards Board (ISSB).
Sustainability-related disclosures should be subject to the same ethical and independence standards as traditional financial reporting. The IESBA is actively developing ethics and independence standards for sustainability assurance, aligning with international frameworks such as the IAASB’s ISSA 5000. This initiative is particularly relevant for Mediterranean economies, where sustainability reporting is gaining traction due to European regulatory frameworks like the Corporate Sustainability Reporting Directive (CSRD).
For accountants in the Mediterranean region, this shift means increased demand for professionals with expertise in ESG reporting, ensuring that sustainability disclosures meet the highest standards of credibility and ethical responsibility.
Ethics and Trust: The Foundation of Professionalism
Beyond sustainability, the importance of ethics in safeguarding public trust is another central theme. Ethics is the profession’s greatest asset, underpinning the reliability of both financial and non-financial information. The adherence to the IESBA Code of Ethics is vital, particularly in an era where financial misconduct and greenwashing pose significant risks to market confidence.
The Mediterranean business landscape, particularly in sectors such as finance, tourism, and trade, relies heavily on cross-border investments and international partnerships. For professionals operating in this dynamic environment, upholding ethical standards is crucial to maintaining market integrity and investor confidence.
Strengthening Governance through Global Collaboration
Collaboration between global standard-setting bodies, regulators, and professional organisations in necessary to ensure the effective implementation of ethical guidelines. The IESBA works closely with the IAASB, ISSB, IOSCO, and other international entities to align ethical and assurance standards with evolving business realities.
This global alignment is particularly important for Mediterranean countries, where regulatory frameworks may vary significantly. The adoption of consistent international ethical and governance standards can help harmonise business practices across jurisdictions, enhancing regional and international trade relations.
Navigating New Challenges: Private Equity, CFOs, and Digitalisation
Emerging challenges, includes the rise of private equity investments in accounting firms, the evolving role of CFOs, and the impact of digitalisation on ethical standards.
With increasing private equity involvement, there is a growing risk of conflicts of interest and pressure to prioritise profitability over ethical considerations. This issue is particularly relevant in Mediterranean markets, where accounting firms are expanding and attracting international investors.
Similarly, the role of CFOs is shifting beyond traditional financial management, with a stronger focus on non-financial reporting and corporate responsibility. Insights from CFOs and other senior professionals are expected to address ethical dilemmas arising in their expanding roles.
A Call to Action for Mediterranean Accountants
As sustainability reporting, ethics, and governance standards evolve, accountants must:
The accounting profession is at a turning point, where ethics and sustainability are no longer optional considerations but fundamental responsibilities. Mediterranean accountants, with their unique positioning between Europe, Africa, and the Middle East, have a crucial role in shaping a more transparent, sustainable, and accountable financial ecosystem.
International Ethics Standards Board for Accountants (IESBA) Firm Culture and Governance Working Group (FCGWG) Final Report, was published January 14, 2025.
The report examines the relationship between firm culture and governance and compliance with ethical and independence standards, focusing on the public interest implications of unethical behaviour within accounting firms.
Background
The report stems from concerns arising from recurring instances of unethical behaviour within accounting firms. These cases, resulting in significant sanctions, penalties, and reputational damage, have eroded public trust in the profession and raised questions about firms' culture and governance. The IESBA, recognizing the public interest implications, established the FCGWG to investigate these concerns.
Key Findings
1. Public Interest at the Forefront:
"A distinguishing mark of the accountancy profession is its acceptance of the responsibility to act in the public interest." (IESBA Code, paragraph 100.1)
2. Ethical Culture: The Foundation of Ethical Behaviour:
3. Leadership's Crucial Role:
"Tone at the top" is critical in shaping ethical behaviour. Leaders must be role models and actively promote ethical conduct within the firm. (Report, Appendix One)
4. Robust Governance Framework:
5. Systemic Importance of Large Firms:
6. The Emergence of Private Equity Investments:
Recommendations
The FCGWG recommends two primary actions:
1. Standard-setting Project:
2. Non-Authoritative Materials (NAMs):
Conclusion
The FCGWG Final Report provides a valuable analysis of the critical link between firm culture, governance, and ethical behaviour within accounting firms. It underscores the profession's fundamental responsibility to act in the public interest and outlines concrete steps to strengthen ethical culture and rebuild public trust. The recommendations for a new standard and supporting NAMs lay the groundwork for a more robust framework to promote ethical conduct and accountability within the profession.
United by the Accountant-Sea
By fostering strong ethical cultures and robust governance frameworks, accounting firms in the Mediterranean region, play a crucial role in shaping the region's economic landscape.
FCM - Fédération des Experts Comptables Mediterranéens / Federation of Mediterranean Accountants is committed to supporting its member organisations in implementing the IESBA's recommendations, recognising that a robust ethical foundation is essential for the profession's continued success and the region's prosperity.
Full report available here:
IESBA Firm Culture and Governance Working Group Final Report | Ethics Board
EFRAG released the Voluntary Sustainability Reporting Standard for non-listed SMEs (VSME), as announced last December 17 at EFRAG website.
Here you find some questions you might have on VSME standard and FCM - Fédération des Experts Comptables Mediterranéens / Federation of Mediterranean Accountants answers.
The VSME, or Voluntary Sustainability Reporting Standard for non-listed SMEs, is a voluntary standard designed to support small and medium-sized enterprises (SMEs) in their sustainability reporting journey. It aims to simplify and harmonise ESG reporting for non-listed SMEs in the EU, helping them meet the increasing demands for sustainability information from stakeholders such as investors, banks, and large corporate clients.
The VSME is specifically targeted at non-listed SMEs operating in the EU, meaning their securities are not traded on a regulated market. It can be applied by a wide range of businesses, from micro-undertakings with fewer than 10 employees to medium-sized companies with up to 249 employees, across various sectors.
The VSME was developed to address several challenges faced by SMEs in sustainability reporting. Firstly, existing reporting frameworks were often too complex and burdensome for smaller businesses. Secondly, there was a lack of harmonisation in data requests from various stakeholders, leading to confusion and duplication of effort. The VSME aims to provide a simplified, proportionate, and standardised approach to sustainability reporting for SMEs, reducing the complexity and cost associated with the process.
The VSME features a modular structure, allowing for flexibility and scalability based on the size and reporting needs of the SME. It includes:
Using the VSME offers several benefits for non-listed SMEs:
The VSME Comprehensive Module specifically addresses data points relevant to financial institutions, aligning with requirements under regulations like the SFDR and the EU Taxonomy. It ensures SMEs can provide information relevant to assessing their sustainability risk profile, enabling them to access bank loans and attract investors focused on ESG factors.
The VSME covers key environmental aspects relevant to SMEs, including:
While the VSME draws inspiration from the European Sustainability Reporting Standards (ESRS), it is specifically tailored to the needs and capabilities of non-listed SMEs. The VSME adopts a simplified and more proportionate approach, requiring fewer disclosures and less detailed information compared to the comprehensive ESRS framework designed for larger companies.
