TECHNICAL HIGHLIGHTS

AUDITING AND ASSURANCE

ISCA Issues Audit Bulletin (AB) 5 Reporting On Grants And Incentive Schemes – Considerations For Government Agencies

To support government agencies in establishing reporting requirements for grants and incentive schemes, ISCA developed AB 5 to raise awareness of the different frameworks available for reporting on grants and incentive schemes.

This audit bulletin also includes frequently asked questions by grantors and questions for grantors to consider in determining the type of framework to apply. Practitioners may also find the information useful to better understand grants reporting under the various frameworks.

New IAASB Guidance On Applying ISA For LCE

New guidance on the application of the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE) will help users in determining the appropriate situations to use the standard. It is useful for firms developing related policies or procedures, and for auditors determining whether the standard is appropriate to use for a specific engagement.

FINANCIAL REPORTING

IFRS Taxonomies

• IFRS Foundation Publishes Guide To Support Regulators Implementing IFRS Digital Taxonomies

IFRS digital taxonomies comprise the IFRS Accounting Taxonomy and the IFRS Sustainability Disclosure Taxonomy. The taxonomies facilitate reporting information preparation using IFRS Accounting Standards and IFRS Sustainability Disclosure Standards in a computer-readable, structured data format.

This guide aims to assist regulators and digital filing system owners with implementing the IFRS digital taxonomies in a manner that supports cross-border digital comparability and analysis of information prepared in accordance with IFRS Standards.

• IASB Proposes Updates To IFRS Accounting Taxonomy For New/Proposed Standards And Amendments

The proposed updates are for:

• new standards and amendments, such as IFRS 19 Subsidiaries without Public Accountability: Disclosures, Amendments to the Classification and Measurement of Financial Instruments and Annual Improvements to IFRS Accounting Standards – Volume 11; and
• proposed disclosure requirements for renewable electricity contracts for IFRS 9 and IFRS 7 which were initially introduced in an exposure draft (ED) published in May 2024. IASB aims to finalise the said changes by the end of 2024 and is considering making the new requirements available for companies to apply as soon as possible after they are finalised. The proposed amendments to IFRS 9 and IFRS 7 might change in response to stakeholder feedback, and the proposals in this Proposed IFRS Taxonomy Update would change to reflect the final amendments issued.

Agenda And Meeting Papers Available

• Supplementary IASB Meeting On Contracts For Renewable Electricity

At the supplementary IASB meeting held on 28 August 2024, IASB discussed the feedback received on the ED Contracts for Renewable Electricity.

• SME Implementation Group (SMEIG)

At the SMEIG meeting held on 3 September 2024, the topics discussed include Second Comprehensive Review of IFRS for SMEs Accounting Standard, Addendum to ED Third Edition of IFRS for SMEs Accounting Standard, and Updating IFRS 19 Subsidiaries without Public Accountability: Disclosures.

• IFRS Interpretations Committee

At the IFRS Interpretations Committee meeting held on 10 September 2024, the topics discussed include Recognition of Revenue from Tuition Fees (IFRS 15), Guarantees Issued on Obligations of Other Entities and Post-Implementation Review of IFRS 16 Leases.

• IASB

At the IASB meeting held from 16 to 18 September 2024, the topics discussed include IASB Staff’s analysis and recommendations on how to proceed on the Power Purchase Agreements project, moving of the projects on amortised cost measurement and statement of cash flows and related matters from the research pipeline to research work plan, and analysis of feedback received on the Addendum to the ED Third Edition of IFRS for SMEs Accounting Standard.

• Accounting Standards Advisory Forum (ASAF)

At the ASAF meeting held on 26 and 27 September 2024, the topics discussed include Climate-Related and Other Uncertainties in the Financial Statements, update on Rate-Regulated Activities, IFRS 17 implementation experience, Post-Implementation Review of IFRS 16 and Power Purchase Agreements.

SUSTAINABILITY & CLIMATE CHANGE

New Webcast On Overview Of ISSB’s Two-Year Work Plan

In the webcast, ISSB Vice-Chair Sue Lloyd and ISSB member Michael Jantzi discussed activities such as supporting the implementation of IFRS S1 and IFRS S2, enhancing the SASB standards, and beginning new research and standard-setting projects about risks and opportunities related to biodiversity, ecosystems and ecosystem services and human capital.