IFAC Latest Activity

IFAC’S GLOBAL KNOWLEDGE GATEWAY

New articles on the Gateway this month:

• Requesting the opinion of professional accountants working in business and public sector/governmental organizations on the Net Zero Transition

• Call to Action for Sustainability Reporting and Assurance

• Women Take the Lead: Get to Know Accounting's Changemakers

• Interview with Catherine Vaughan, Partner at EY Ireland and Diversity Champion

• Interview with Gavi CFO Assietou Diouf

• Interview with Digital Nomad Heather Smith

• Interview with Hina Usmani, Founder of an All Women SMP

• What Skills do Financial Professionals Need to Transition to Sustainable Economies?

• Financial Literacy for SMEs: A Lifeline to the Lifeblood of the Global Economy

• SMP & SME Trends: Enhanced Global Complexity Requires Continued Innovation and Change Management

• The Five Opportunities That Make Accountancy a Passport to Meaningful Careers in the Private and Public Sectors

• Eight Key Takeaways for the Accountancy Profession Facilitating Sustainable Development and Net Zero Transitions

• Case Study: Tesco PLC - Finance Teams Partnering to Enable Net Zero Commitments

• Mental Health Resources

INTERNATIONAL AUDITING AND ASSURANCE STANDARDS BOARD (IAASB)

• IAASB Advances Timeline for Consultation For Proposal On Sustainability Assurance, Ensuring Timely Delivery in 2024 — IAASB confirmed its intention to advance the consultation on its proposed new standard for sustainability assurance, International Standard on Sustainability Assurance TM (ISSA) 5000, General Requirements for Sustainability Assurance Engagements. Subject to the expected IAASB approval of the Exposure Draft in June, stakeholders can now expect the public consultation on the proposed standard to open in the latter part of July or early August 2023 and extend into December 2023. The earlier publication, accompanied by a comprehensive and global outreach strategy, will enable the IAASB to gain broad and early input into the development of ISSA 5000. When complete, ISSA 5000 will be a standalone, overarching standard suitable for both limited and reasonable assurance of sustainability information reported across any sustainability topics. The standard will enable engagements of sustainability information prepared under multiple frameworks and be profession-agnostic, supporting its use by both professional accountant and non-professional accountant assurance practitioners in performing sustainability assurance engagements.

• IAASB approves draft of International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, for public consultation. The consultation will be open by early August until early December 2023.

• IAASB Digital Technology Market Scan: Internet of Things Technologies — In this Market Scan, the IAASB explores the Internet of Things, focusing on Networks for Asset Monitoring and Data Generation, a technology that enables real time tracking, managing and monitoring of business processes and assets. It also may form part of an entity’s internal control system and may provide data inputs to non-financial reporting, such as emissions reporting.

• IESBA And IAASB Highlight Commitment To Deliver On Recommendations In New IOSCO Report On A Global Assurance Framework For Sustainability-Related Corporate Reporting — IESBA and IAASB welcomethe report released by the International Organization of Securities Commissions (IOSCO) on developing a global assurance framework for sustainability-related corporate reporting. The report calls for timely development of ethics and assurance standards for sustainability reporting by the IESBA and the IAASB. Both the IESBA and IAASB will issue public consultations this year on standards for sustainability ethics and assurance, respectively. Both boards plan to finalize their respective standards in 2024.

IAASB Effective Dates

• IAASB Quality Management Standards — effective date was December 15, 2022. Explore more on the Quality Management Standards by accessing IFAC’s dedicated Quality Management page to view articles, webinars, videos, implementation guides and more resources!

• International Standard on Auditing 600 (Revised) — effective for audits of group financial statements for periods beginning on or after December 15, 2023. The Basis for Conclusions and a Factsheet are availableto support implementation.

INTERNATIONAL ETHICS STANDARDS BOARD FOR ACCOUNTANTS (IESBA) CODE OF ETHICS EFFECTIVE DATES

• IESBA Strengthens and Clarifies Independence Requirements for Group Audits — IESBA released final revisions to the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) to address holistically the various independence considerations in an audit of group financial statements. The pronouncement will be effective for audits of financial statements and group financial statements for periods beginning on or after December 15, 2023, with early adoption permitted.

• Global webinar recording with the IESBA Engagement Team –Group Audits Independence on the revisions is now available.

• Public Interest Entities (PIE) related revisions — this pronouncement will be effective for audits of financial statements for periods beginning on or after December 15, 2024. Early adoption is permitted.

Visit IESBA’s dedicated Strengthening International Independence Standards webpage for further guidance and resources on NAS, Feerelated, and PIE revisions!

• IESBA Strengthens Global Ethics Standards To Respond To Transformative Effects Of Technological Innovation — IESBA released final revisions to further increase the Code’s robustness and expand its relevance in a world being fundamentally reshaped by rapid technological advancements and accelerating digitalization. The revisions will guide the ethical mindset and behavior of professional accountants in both business and public practice as they take advantage of the opportunities created by technology and adapt to new technology.Revisions will be effective as of December 15, 2024. Early adoption is permitted.

International Public Sector Accounting Standards Board (IPSASB)

• IPSASB Begins Development of Climate-Related Disclosures

Standard for The Public Sector — The IPSASB has announced that it will move ahead with the development of the first sustainability reporting standard for the public sector. Respondents to IPSASB’s May 2022 consultation paper on Advancing Public Sector Sustainability Reporting agreed that the public sector urgently needs its own sustainability reporting standards and that the IPSASB, with its 25 years of standard setting experience, should lead their development. Following a scoping and research phase, the IPSASB has decided to move forward with the development of a public sector specific Climate-Related Disclosures standard and has published a project brief for this major new piece of work. Reporting on climate change is one of the most important issues in sustainability reporting, which also encompasses environmental, social and governance issues.

• IPSASB Issues Public Sector Guidance To Report On Sustainability Program Information — In light of the urgent need for sustainability reporting guidance for the public sector, IPSASB has issued Reporting Sustainability Program Information—Amendments to RPGs 1 and 3: Additional NonAuthoritative Guidance. Ahead of a decision by the IPSASB on the potential development of a framework for public sector specific sustainability reporting guidance, the additional non-authoritative guidance included in Recommended Practice Guideline (RPG) 1, Reporting on the Long-Term Sustainability of an Entity’s Finances, and RPG 3, Reporting Service Performance Information can be immediately applied by governments and public sector entities to report on sustainability program information. The additional guidance is intended to support the implementation of the key areas highlighted in the OECD paper Green Budgeting: A Way Forward. RPG 3 includes four illustrative examples.

• IPSASB Calls for Papers For 4th Research Forum — In preparation for its 4th Research Forum, which will be co-hosted by Comparative International Governmental Accounting Research Network (CIGAR) at its June 2024 conference, the IPSASB is calling for scholarly contributions from the academic community. This is an opportunity for researchers to have a significant impact on accounting standards used by governments and public sector entities across the globe. The IPSASB is offering a grant of USD $2,000 for selected scholarly papers submitted covering three research areas. Up to six grants are available in total. The grant recipients, as well as other scholars, will present the first drafts of their full papers at the 2024 Research Forum (June 2024). As a first step, academics are invited to submit abstracts by September 1, 2023.

• Fabienne Colignon Elected as IPSASB Consultative Advisory Group Chair — The Consultative Advisory Group (CAG) of the IPSASB elected Ms. Fabienne Colignon as its chair to lead its advisory efforts for the next three years. The CAG advises the IPSASB on technical projects and issues, as well as on its Strategy, adoption of standards, and other pressing issues.

• IPSASB e-News: June 2023 — the latest on IPSASB projects.

IPSASB Effective Dates

• International Public Sector Accounting Standard® (IPSAS®) 47, Revenue; effective January 1, 2025(Earlier application is permitted)

• IPSAS 48, Transfer Expenses; effective January 1, 2025 (Earlier application is permitted)

• International Public Sector Accounting Standard® (IPSAS®) 45, Property, Plant, and Equipment, effective January 1, 2025 (Earlier application is permitted)

• IPSAS 46, Measurement, effective January 1, 2025 (Earlier application is permitted)

• IPSAS 44, Non-current Assets Held for Sale and Discontinued Operations — Effective: January 1, 2025 (Earlier application is permitted)

• IPSAS 43, Leases — Effective: January 1, 2025 (Earlier application is permitted)