ISCA Issues Updated SSA 260 (Revised) And SSA 700 (Revised) Arising From Revised ACRA Code
The amendments, which are effective for periods beginning on or after 15 December 2024, operationalise the revisions to the ACRA Code that require a firm to publicly disclose when it has applied the independence requirements for public interest entities (PIEs).
IAASB Publishes ISSA 5000, General Requirements For Sustainability Assurance Engagements
IAASB published the International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements.
With the goal of enhancing the trust and confidence investors, regulators and other stakeholders have in sustainability information, this standard will serve as a comprehensive, standalone standard suitable for any sustainability assurance engagements. It will apply to sustainability information reported across any sustainability topic and prepared under multiple frameworks. The standard is also profession-agnostic, supporting its use by both professional accountant and non-accountant assurance practitioners.
ISCA would be adopting the Singapore equivalent of ISSA 5000.
EP 100 IG 4 (Revised 2024) Clarification On Public Interest Entities In Singapore
ISCA has issued EP 100 IG 4 (Revised 2024) Clarification on Public Interest Entities in Singapore to clarify on entities, including financial institutions, that would be considered as PIEs in Singapore.
Six new FAQs have been added, including guidance on whether the following would be a publicly traded entity or another category of PIE in EP 100 (revised on 8 August 2024):
Please click here for EP 100 IG 4 (Revised 2024).
ACRA Issues Changes To ACRA Code Effective 15 December 2024
ACRA has issued changes to the ACRA Code to adopt two IESBA final pronouncements, Revisions to the Definitions of Listed Entity and Public Interest Entity in the Code, and Technology-related Revisions to the Code. For purposes of local adaptation, the Singapore definition of “public interest entity” (PIE) in the Glossary of the ACRA Code was revised to clarify on the entities that would be considered as PIEs locally. These changes are aligned with ISCA’s EP 100 (revised on 8 August 2024), which is also effective 15 December 2024.
The ED proposes eight examples showing how entities can apply existing IFRS requirements to report the effects of climate-related and other uncertainties in the financial statements. We are generally supportive of the proposals except as follows:
Example 1: This example illustrates the disclosure of “non-impact” statements in the financial statements as the information is material. We are concerned that this may lead to entities including such statements for all risks and uncertainties, regardless of materiality, which may lead to unnecessary clutter in the financial statements. Hence, we urge IASB to remove this example.
Areas which we have reservations on include:
The ED includes proposals to update IFRS 19 (a new reduced disclosure framework for eligible entities) with reduced disclosure requirements for new or amended IFRSs that are issued between 28 February 2021 and 1 May 2024, namely IFRS 18, IAS 7, IAS 12 and IAS 21. We are supportive of this approach of updating IFRS 19 by IASB.
We note that IASB’s decision, of not including disclosure objectives in IFRS 19, is to avoid the perception that entities are required to provide the same disclosures as when they have not applied IFRS 19. However, the absence of overall disclosure objectives may result in entities perceiving the disclosure requirements in IFRS 19 as a checklist. Hence, we recommend for IASB to include the guiding principles in paragraph BC 33 of IFRS 19 to explain the rationale behind the disclosure requirements, aiding in better understanding of their context.
November 2024 IASB Update And Podcast Available
In November 2024’s IASB Update and Podcast, the topics discussed include targeted refinements to IASB’s proposals for a revised IFRS Practice Statement 1 Management Commentary, and key proposals in IASB’s ED Provisions – Targeted Improvements (Proposed amendments to IAS 37).
November 2024 IFRIC Update Available
This Update is a summary of discussions by the IFRS Interpretations Committee (IFRIC). The discussion topics include IFRIC’s tentative agenda decisions relating to the recognition of intangible assets resulting from climate-related expenditure (IAS 38) and assessment of indicators of hyperinflationary economies (IAS 29); potential topics that IASB might explore in its Statement of Cash Flows and Related Matters project; and inputs provided on IASB’s ED Climate-related and Other Uncertainties in the Financial Statements.
December 2024 Agenda And Meeting Papers Available
At the ASAF meeting on 5 and 6 December 2024, topics discussed include Rate-regulated Activities, Amortised Cost Measurement, Statement of Cash Flows and Related Matters and Updating IFRS 19 Subsidiaries without Public Accountability: Disclosures.
At the IASB meeting from 9 to 11 December 2024, topics discussed include updates on IASB’s work plan, targeted refinements to proposals in ED Management Commentary, and summaries of feedback on ED Business Combinations – Disclosures, Goodwill and Impairment.
IFRS Foundation Publishes Guide To Help Companies Identify Sustainability-Related Risks And Opportunities
The IFRS Foundation has published a new comprehensive guide designed to help companies with the fundamental task of identifying and disclosing material information about sustainability-related risks and opportunities that could reasonably be expected to affect their cash flows, and their access to finance or cost of capital over the short, medium or long term. In addition, the guide highlights how companies applying ISSB Standards can benefit from the process they might already be following in making materiality judgements when preparing financial statements, particularly when applying IFRS Accounting Standards.
November 2024 ISSB Update And Podcast Available
In this month’s ISSB Update and Podcast, ISSB Chair Emmanuel Faber and ISSB Vice-Chair Sue Lloyd shared on topics discussed at the ISSB meeting in November 2024, including a new report on global progress towards both mandated and voluntary corporate climate-related disclosures, and a guide helping companies identify sustainability-related risks and opportunities and the disclosure of material information.
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