• IOSCO consults on ESG Ratings and Data Providers

    July 26, 2021 Published: IOSCO The Board of the International Organization of Securities Commissions (IOSCO) is soliciting feedback on a set of proposed recommendations regarding Environmental, Social and Governance (ESG) Ratings and Data Providers. The IOSCO Consultation Report on Environmental, Social and Governance (ESG) Ratings and Data Providers (Consultation Report) aims at assisting IOSCO members in understanding

  • IASB proposes minor amendment to transition requirements for insurers applying IFRS 17 and IFRS 9 for the first time

    July 28, 2021 Published: IFRS The International Accounting Standards Board (Board) has today proposed a narrow-scope amendment to the transition requirements in IFRS 17 Insurance Contracts. The proposed amendment does not affect any other requirements in IFRS 17. Many insurers will apply IFRS 17 and IFRS 9 Financial Instruments for the first time from 2023 and

  • IAASB public consultation opens for proposed new Standards for Audits of Financial Statements of Less Complex Entities

    July 23, 2021 Published: IAASB New Proposed Stand-Alone Standard to Meet Market Needs Today, the International Auditing and Assurance Standards Board (IAASB) published an exposure draft of its new, stand-alone standard for audits of financial statements of less complex entities. This landmark new draft standard responds to demands to have a set of high-quality requirements tailored

  • Implementation monitoring of the PFMI: Level 3 assessment of financial market infrastructures’ business continuity planning

    July 21, 2021 Published: IOSCO • The CPMI and IOSCO assessed the implementation of Principle 17 (Operational risk) of the Principles for financial market infrastructures in 38 FMIs from 29 jurisdictions. • Surveyed financial market infrastructures (FMIs) have business continuity plans, reviewed at least annually and tested regularly, that included pandemic scenarios prior to Covid-19.

  • GASB issues proposal to enhance concepts for Notes Financial Statements

    July 20, 2021 Published: GASB The Governmental Accounting Standards Board (GASB) today issued a proposed Concepts Statement to guide the Board when establishing note disclosure requirements for state and local governments. The document is part of the GASB’s response to the results of its research reexamining existing note disclosure requirements. The proposed concepts primarily are

  • Diverse boards lead to better corporate culture and performance

    July 20, 2021 Published: FRC ·         building and maintaining diversity requires proactive planning, concrete actions and consistent prioritisation ·         diversity is a long-term, multi-stranded journey where progress in one area is not a guarantee of progress in another ·         there is still have a long way to go to fully access the diverse talent in

  • IFAC Releases Latest Point of View: Greater Transparency and Accountability in the Public Sector

    July 19, 2021 Published: IFAC Today, IFAC released a Point of View: Greater Transparency and Accountability in the Public Sector.  The public sector is facing a myriad of competing priorities, including an unprecedented global health crisis and climate emergency, and must make critical decisions that will affect generations to come. In this environment, helping citizens understand how public

  • Why accounting firms are facing a cloud security challenge

    July 14, 2021 Published: The Accountant Most organisations were taken by surprise when the pandemic struck back in early 2020, and those in the accounting sector were no exception. But the firms that adapted best were those that were already investing in cloud-centric transformation projects, where next-gen applications and infrastructure enabled them to become more

  • Challenger firms increase their share of the FTSE 250 audit market

    July 14, 2021 Published: FRC New data from the Financial Reporting Council (FRC) has revealed the challenger audit firms have increased their share of FTSE 250 audits, up from 4.8% to 7.6%, however all FTSE 100 companies continue to be audited by a Big Four firm. Improving competition across the FTSE 350 audit market remains a

  • Money laundering is a real issue: are we doing enough to fight it?

    July 12, 2021  Published: Accountancy Europe  by Iryna de Smedt  Drug dealers reinvesting their criminal activity’s revenues into a legal business. Tax evaders partially hiding their income. Corrupted civil servants accepting bribery. These are just some of the unlawful activities that generate money laundering (ML). The ABC of money laundering ML is a serious financial crime whereby the proceeds of unlawful activities are disguised and employed in a legitimate business. The term originates from Al Capone’s practice of using the money

  • IFRS Foundation response to G20 Finance Ministers’ Communique

    July 10, 2021 Published: IFRS The G20 Finance Ministers and Central Bank Governors published a Communique following their meeting in Venice, Italy, on 10 July 2021, referencing the IFRS Foundation. The Communique states: “We will work to promote implementation of disclosure requirements or guidance, building on the FSB’s Task Force on Climate-related Financial Disclosures (TCFD)

  • A constructive two-way cooperation to Sustainability reporting standard-setting

    July 8, 2021 Published: Accountancy Europe Climate change, environmental degradation and social issues are global challenges that concern us all. Stakeholders understand that companies’ financial and sustainability reporting impact and depend on one-another. The demand for harmonised standards has pushed policymakers to take action. This publication presents the accountancy profession’s views on how to put

  • Quality management proposal provides opportunity to consider risks

    July 8, 2021 Published: Journal of Accountancy The evolving, risk-based approach to audit firm quality management is consistent with a trend that has become well established in the accounting profession. Over the past 15 years or so, leaders of the profession have increasingly understood and embraced the effectiveness of using a risk-based approach in their

  • FRC outline necessary action for effective ESG reporting

    July 7, 2021 Published: FRC The FRC has today published the FRC Statement of Intent on Environmental, Social and Governance challenges. This paper sets out areas in which there are issues with ESG information if companies are to report in a way that meets the demands of stakeholders, how to address some of these demands and the

  • EU green bond standard: Europe’s next move to help finance sustainable projects By Vita Ramanauskaité

    With the European Green Deal, the European Commission (EC) sets Europe on a path to become climate neutral by 2050. This is in line with the Paris Agreement objectives and reflects the EU’s contribution to the global fight against climate change. Achieving this objective will require massive investments. Green bonds (GB) are one of the

  • The IIA Releases New Global Technology Audit Guide on Auditing Identity and Access Management

    June 30, 2021 Published: The Institute of Internal Auditors The IIA is pleased to announce its new GTAG that provides internal auditors with fundamental IT knowledge and information on an area that can carry significant security and regulatory risks. Written for auditors of all experience levels, “Auditing Identity and Access Management” discusses foundational topics of

  • Strengthening corporate governance should be a priority to boost economic recovery, says OECD

    June 30, 2021 Published: OECD The COVID-19 pandemic has exacerbated existing structural weaknesses in the corporate sector and capital markets. Without an effective policy response, the number of undercapitalised and underperforming firms will likely rise and remain high, while an increasing amount of productive resources will be tied up in non-viable companies, dragging down investment

  • Five Tips for GRI and SASB Reporters

    June 28, 2021 Published: SASB Many companies use both GRI and SASB Standards to generate information that meets the needs of all constituencies and markets. Earlier this year, we published joint research exploring the experiences of companies that use the two sets of standards together to communicate effectively with their intended audiences.” The paper—which includes survey results

  • Establishment of the Monitoring Group Nominating Committee and Publication of the Open call for Applications to the Public Interest Oversight Board

    July 1, 2021 Published: IOSCO The Monitoring Group (MG) is responsible for the overall governance of the international audit and ethics standard-setting system, including periodic effectiveness reviews. In July 2020, the MG issued its recommendations Strengthening the International Audit and Ethics Standard-Setting System (MG Recommendations or MG Reforms). On June 3, 2021, the Monitoring Group

  • IFAC Supports IOSCO’s Vision for a Global Baseline of Investor-Focused Sustainability Standards

    June 28, 2021 Published: IFAC The International Federation of Accountants (IFAC), which represents more than 3 million professional accountants globally, welcomes IOSCO’s new report in which it elaborates on its vision and expectations for the IFRS Foundation’s work toward a global baseline of investor-focused sustainability standards. IFAC has long advocated for the IFRS Foundation to establish an International Sustainability

  • IOSCO consults on sustainability-related regulatory and supervisory expectations in asset management

    June 30, 2021 Published: IOSCO The Board of the International Organization of Securities Commissions (IOSCO) is requesting feedback on proposed recommendations about sustainability-related regulatory and supervisory expectations in asset management. The IOSCO Consultation Report on Recommendations for Sustainability-Related Practices, Policies, Procedures and Disclosure in Asset Management (Consultation Report) focuses on investor protection issues and proposes

  • Accounting for SDCs in the digital age

    June 22, 2021 Published: The Accountant With the subject of intangible assets on the agenda of accountancy standard setters and regulators for some time and increasingly gaining momentum, a new report from the Association of Chartered Certified Accountants (ACCA) and Glasgow University’s Adam Smith Business School examines the issue of Software Development Costs (SDCs) and

  • New Study Reveals Lack of Standardization in Sustainability Assurance

    June 23, 2021 Published: IFAC Global practices for sustainability assurance—including the prevalence of assurance, level of assurance, and standard and practitioner used—varies widely by jurisdiction, according to a new study from the International Federation of Accountants (IFAC) and the AICPA & CIMA (representing the Association of International Certified Professional Accountants). The new study is a groundbreaking review

  • FASB proposed improvements to discount rate guidance for lessees that are not public business entities

    June 16, 2021 Published: FASB The Financial Accounting Standards Board (FASB) today issued a proposed Accounting Standards Update (ASU) that would improve discount rate guidance for lessees that are not public business entities—including private companies, not-for-profit organizations, and employee benefit plans. It is intended to reduce the expected cost of implementing the lease standard (Topic

  • New Quality Management Implementation Guides now available

    June 14, 2021 Published: IAASB Guides Provide a Pathway to a Robust, Effective Quality Management System The International Auditing and Assurance Standards Board (IAASB) today released two guides to help stakeholders implement its suite of quality management standards. The guides will help stakeholders understand the standards and properly implement the requirements in the manner intended:

  • Global Public Sector Shift to Accrual Accounting Forecast to Continue

    June 16, 2021 Published: IFAC Joint report by IFAC and CIPFA forecasts 50% of jurisdictions globally will report on an accrual basis by 2025 In 2025, governments in 50% of jurisdictions will report on an accrual basis, according to a report released today by the International Federation of Accountants (IFAC) and the Chartered Institute of

  • IFAC Welcomes U.S. SEC’s Request for Input on Climate Change Disclosures; Urges Support for Global System

    June 16, 2021 Published: IFAC “Building Blocks” Approach Addresses Informational Needs of Global Capital Markets as well as Country-Specific Requirements The International Federation of Accountants (IFAC), which comprises 180 member and associate organizations and represents over 3 million professional accountants globally, continues its work in support of a global system for delivering consistent, comparable and

  • Sustainability risk management for SMEs: inaction is not an option

    June 14, 2021 Published: Accountancy Europe By Johan Barros We live in unprecedented times: globally integrated supply chains, climate change, and now the pandemic, have highlighted the need to change how we do business. These issues touch on how the UN defines sustainable development: How to meet the needs of the present without compromising the ability of

  • CAQ Alert 2021-02: Amendments to SEC Independence Rules

    June 10, 2021 Published: The CAQ The Securities and Exchange Commission (SEC) approved amendments to certain auditor independence requirements in Rule 2-01 of Regulation S-X in October 2020. These amendments are effective June 9, 2021. Voluntary early compliance is permitted after December 11, 2020 (the date the amendments were published in the Federal Register) in advance of the effective date provided

  • Monitoring Group Reports on Progress to Implement Recommendations to Strengthen the International Audit and Ethics Standard-Setting System

    June 3, 2021 Published: IOSCO The MG is responsible for the overall governance of the international audit and ethics standard-setting system including conducting periodic effectiveness reviews. In July 2020 the Monitoring Group (MG) issued its recommendations Strengthening the International Audit and Ethics Standard-Setting System (MG Recommendations or MG Reforms). The MG Recommendations, when fully implemented,

  • IIRC and SASB form the Value Reporting Foundation, providing comprehensive suite of tools to assess, manage and communicate value

    June 9, 2021 Published: IIRC The International Integrated Reporting Council (IIRC) and the Sustainability Accounting Standards Board (SASB) today officially announce their merger to form the Value Reporting Foundation. The Value Reporting Foundation supports business and investor decision-making with three key resources: Integrated Thinking Principles, Integrated Reporting Framework and SASB Standards. These tools help businesses and

  • Internal audit has pivotal role in ESG reporting

    June 7, 2021 Published: Journal of Accountancy Amid the growing momentum toward increased organizational disclosure of environmental, social, and governance (ESG) information, internal audit has a pivotal role to play in driving organizational value related to these issues. Interest in these issues has increased in the United States, with the SEC exploring potential regulation amid

  • Estudio Big Four: hay poca confianza en la información no financiera que entregan las empresas

    Estudio Big Four: hay poca confianza en la información no financiera que entregan las empresas

    Junio 5, 2021 La Tercera – Pulso El documento es un llamado de atención a las compañías acerca de incorporar de mejor forma los elementos sostenibles en sus reportes, justo en el momento en que la CMF está en el proceso de modificar la normativa al respecto. Un estudio realizado por la Asociación de Auditores

  • New standard addresses investments, specialist matters

    June 8, 2021 Published: Journal of Accountancy The AICPA Auditing Standards Board issued a standard Tuesday that provides guidance on the use of specialists and pricing information obtained from external information sources. The guidance is included in Statement on Auditing Standards (SAS) No. 144,Amendments to AU-C Sections 501, 540, and 620 Related to the Use of

  • IIRC publishes integrated report ahead of merger with SASB

    June 3, 2021 Published: Integrated Reporting (IR) The International Integrated Reporting Council (IIRC) today publishes its latest integrated report ‘Driving Cohesion‘ ahead of the merger with the Sustainability Accounting Standards Board (SASB) to form the Value Reporting Foundation. The report was developed through a process of integrated thinking led by the IIRC Board and management. The

  • Professional Accountants Leading Reporting and Assurance on Sustainability

    May 26, 2021 Published: IFAC As professional accountants, the chief stewards of business information, we have both an important responsibility and a transformative opportunity to engage in and lead on upcoming changes in corporate reporting, and improving the quality of sustainability information. The voluntary approach to reporting sustainability information has been in place for a

  • International Federation of Accountants (IFAC) Continues Drive Against Financial Crime

    June 2, 2021 Published: IFAC Endorses the World Economic Forum’s Unifying Framework The International Federation of Accountants (IFAC) welcomes the work of the World Economic Forum’s (the “Forum”) Unifying Framework, published today, for the important added visibility it provides in the fight against financial crime from a cross-sectoral perspective. The release of the Forum’s report today

  • Building an effective Anti-Money Laundering ecosystem

    From reactive to proactive risk management May 28. 2021 Published: Accountancy Europe Money laundering has devastating consequences for economy and society. It is critical to ensure that the fight against money laundering is effective. This publication presents recommendations on how to build a more effective anti-money laundering/combating the financing of terrorism (AML/CFT) ecosystem across Europe.

  • Auditors may see increased demand for ESG attestation

    May 28, 2021 Published: Journal of Accountancy By Joseph Radigan The first few months of 2021 witnessed some major milestones in investors’ and regulators’ efforts to get public companies to provide shareholders with more information about environmental, social, and governance (ESG) issues. In March, the SEC published a request for public comments about ESG disclosures. The move

  • FRC issues revised auditing standard for the auditor’s responsibilities relating to fraud

    May 27, 2021 Published: FRC The Financial Reporting Council (FRC) has today issued a revision of its UK auditing standard on the responsibilities of auditors relating to fraud – ISA (UK) 240 (Revised May 2021) – The Auditor’s responsibilities Relating to Fraud in an Audit of Financial Statements. The revisions to the standard are designed to provide

  • AICPA & CIMA issue new nonauthoritative guidance for auditing digital assets

    May 25, 2021 Published: Journal of Accountancy AICPA & CIMA issued nonauthoritative guidance for auditing digital assets such as cryptoassets in the areas of risk assessment, processes and controls, laws and regulations, and related parties. The guidance was added to the free practice aid Accounting for and Auditing of Digital Assets. The AICPA created the practice

  • Workforce engagement lies at the heart of good corporate governance

    May 24, 2021 Published: FRC ·         An effective feedback loop between boards and the workforce is needed to achieve meaningful dialogue. ·         Those who act as an interface between the board and the workforce, whether sitting on a panel or as worker directors, should receive appropriate support. ·         Energies should be focussed principally on the

  • SASB Supports SEC Action to Promote Decision-Useful ESG Disclosure

    May 20, 2021 Published: SASB By: Janine Guillot is CEO of SASB This week, SASB submitted our response to the US Securities and Exchange Commission’s request for input on climate change disclosure. The SEC’s consultation signals a commitment to give serious consideration to whether and how regulation might more effectively address the information needs of 21st century investors. SASB supports

  • Enabling Sustainability a Priority for Accountants in Business & Public Sector

    May 19, 2021 Published: IFAC IFAC’s Professional Accountants in Business (PAIB) Advisory Group has compiled insights on key global trends impacting the future readiness of the accountancy profession in a new report Enabling Purpose Driven Organizations: PAIBs Leading Sustainability and Digital Transformation. This report includes highlights from the PAIB March 2021 meeting, focusing on: ·        

  • European Green Deal: Developing a sustainable blue economy in the European Union

    May 17, 2021 Published: European Commission Today, the European Commission is proposing a new approach for a sustainable blue economy in the EU for the industries and sectors related to oceans, seas and coasts.  A sustainable blue economy is essential to achieving the objectives of the European Green Deal and ensuring a green and inclusive recovery from the pandemic.

  • High quality disclosures vital for investors ahead of 2021 interim reporting season

    May 18, 2021 Published: FRC Ahead of the 2021 interim reporting season, a review by the Financial Reporting Council (FRC) has highlighted examples of good practice in company’s interim reporting and areas where further improvements are required. The FRC reviewed the reports of 20 quoted companies across a range of industries to assess the quality of interim reporting.

  • The Professional Accountant’s Role in Data

    May 12, 2021 Published: IFAC As economies digitize, organizations of all sizes across sectors face enormous disruption and opportunity. Professional accountants must expand their approach to include both structured and unstructured datasets to support organizations in making insight-driven decisions. The Professional Accountant’s Role in Data, a joint report released by IFAC and the Chartered Professional Accountants of Canada (CPA Canada), outlines a data management value

  • Tips for lease accounting amid financial uncertainty

    May 13, 2021 Published: Journal of Accountancy By Sarah O’Sullivan, CPA It’s been more than a year since the pandemic began, and while the vaccine rollout is reason for optimism, many organizations will be dealing with financial fallout for the foreseeable future. While private businesses and not-for-profit organizations face mounting financial pressures, many are also

  • New article from the IESBA Covid-19 Working Group: 5 Ethical Challenges that will intensify as the pandemic wanes

    May 10, 2021 Published: IESBA A working group formed by the International Ethics Standards Board for Accountants (IESBA) and national ethics standard setters (NSS) from Australia, Canada, China, South Africa, the UK and the US has released 5 Ethical Challenges that Will Intensify as the Pandemic Wanes, a look at the key ethical issues that lie ahead for

  • Financial regulators publish plan for upcoming work

    May 7, 2021 Published: FRC The Financial Services Regulatory Initiatives Forum has today published the third edition of the Regulatory Initiatives Grid which this year includes contributions from the Financial Reporting Council (FRC) for the first time. The Regulatory Initiatives Grid is published twice a year and includes upcoming regulatory activity that may have a significant operational impact