IAASB Announces New Strategy And Work Plan To Advance Global Audit And Assurance Standards
The International Auditing and Assurance Standards Board (IAASB) published its approved strategy and work plan aimed at enhancing consistency and quality of audit and assurance standards worldwide. Elevating Trust in Audit and Assurance: IAASB’s Strategy and Work Plan for 2024–2027 reflects the crucial role of audit and assurance in fostering trust in the world’s economies. One of the key highlights includes completing priority audit and assurance projects, with emphasis on fraud, going concern, and sustainability assurance.
ISCA Comments On IESBA’s Exposure Draft On Using The Work Of An External Expert
ISCA supports the International Ethics Standards Board for Accountants’ (IESBA) proposed ethical framework to guide professional accountants (PAs) and sustainability assurance practitioners (SAPs) in evaluating whether an external expert has the necessary competence, capabilities and objectivity in order for PAs and SAPs to use their work for the intended purposes.
Read the comment letter here.
ISCA Comments On IESBA’s Exposure Draft On Proposed International Ethics Standards For Sustainability Assurance
ISCA supports the proposed International Ethics Standards for Sustainability Assurance (IESSA) as a common set of ethics and independence standards for use by all SAPs. The IESSA is included in a new Part 5 of the IESBA’s Code to be framework-neutral and profession-agnostic, and equivalent to the standards which currently apply to financial statement audits. The goal of these standards is to mitigate greenwashing and elevate the quality of sustainability information, thereby fostering greater public and institutional trust in sustainability reporting and assurance.
To support adoption of the IESSA as the go-to standard for all SAPs, including non-PAs, we propose that IESBA collaborate with international conformity assessment and accreditation bodies to provide clarity on terms and concepts used in the IESSA for SAPs who are non-PAs to be clear what needs to be done. At the same time, we propose that IESBA work with the IAASB to address issues relating to group sustainability assurance engagements, using the work of another practitioner, and value chain entities.
Read the comment letter here.
IESBA Launches First Global Ethics Standards On Tax Planning
This first comprehensive suite of global standards on ethical considerations in tax planning and related services provides a principles-based framework and a global ethical benchmark applicable to tax planning services and activities. This will establish a consistent point of reference for all PAs as well as other tax professionals. PAs and other tax professionals are strongly encouraged to use the standards, when dealing with tax planning, to ensure due consideration of public interest as well as potential reputational, commercial, and wider economic consequences for their clients or employing organisations.
ISCA Issues FRB 3 (Revised April 2024) Classification Of Liabilities As Current Or Non-Current (Amendments To SFRS(I) 1-1)
FRB 3 (Revised), published on 30 October 2020, guides readers in understanding and applying the amendments to SFRS(I) 1-1 Presentation of Financial Statements issued in 2020 (2020 amendments) to certain common scenarios in Singapore, such as long-term loans with callable clauses and term loans with rollover facilities.
FRB 3 (Revised April 2024) has been issued to incorporate the clarifications (2022 amendments) to the 2020 amendments for SFRS(I) 1-1, which together with the 2020 amendments, would be effective for annual reporting periods beginning on or after 1 January 2024 retrospectively.
One salient clarification is centred on the classification of liabilities with the right to defer settlement which are conditional on the compliance with specified conditions (commonly known as covenants). Only covenants which an entity must comply with, on or before the end of the reporting period, will affect a liability’s classification as current or non-current.
IASB Issues IFRS 19 Subsidiaries Without Public Accountability: Disclosures
IFRS 19 permits eligible subsidiaries to use IFRS Accounting Standards with reduced disclosures. Applying the standard will reduce the costs of preparing subsidiaries’ financial statements while maintaining the usefulness of the information for users of their financial statements. The standard is available for use immediately.
IASB Launches Comprehensive Review Of Accounting For Intangibles
The project will assess whether the requirements of IAS 38 Intangible Assets remain relevant and continue to fairly reflect current business models or whether the IASB should improve the requirements. The initial research and planning phase aims to define the scope of issues to be explored in the project, and will consider the best approach to plan and organise the work.
IASB Concludes Project On Business Combinations Under Common Control And Publishes Summary
In a business combination under common control (BCUCC), the combining entities are ultimately controlled by the same party before and after the combination. IFRS 3 Business Combinations does not address the accounting of a BCUCC and this has led to diversity in reporting and disclosure practices.
To address this, the IASB researched on whether to develop reporting requirements. After considering the research findings, the IASB decided to discontinue its work on the project as any improvements to financial reporting that might result from developing the reporting requirements are likely to be outweighed by the costs of developing and implementing such changes. The project summary provides further information about this decision.
IFRS Foundation Issues Compilation Of Agenda Decisions – Volume 10
The IFRS Foundation has published Compilation of Agenda Decisions – Volume 10, which contains all the agenda decisions issued by the IFRS Interpretations Committee (IFRIC) from November 2023 to April 2024.
April 2024 IASB Update And Podcast Available
In this podcast, IASB Executive Technical Director Nili Shah is joined by IASB Chair Andreas Barckow and IASB Vice-Chair Linda Mezon-Hutter as they share on topics discussed at the IASB meeting in April 2024, including the launch of a comprehensive review into Intangible Assets; developments in the Climate-Related and Other Uncertainties in the Financial Statements project; and the finalised Agenda Decision on net-zero commitments.
Q1 2024 IFRIC Podcast Available
In this podcast, IFRIC Chair and IASB member Bruce Mackenzie shared on IFRIC’s decisions made at its March 2024 meeting on climate-related commitments in IAS 37, and payments contingent on continued employment during handover periods (IFRS 3).
April 2024 IFRS For SMEs Accounting Standard Update Available
This edition of Update includes an overview of the proposals in the Addendum to the Exposure Draft Third edition of the IFRS for SMEs Accounting Standard; and an update on the IASB redeliberations of proposals in the Exposure Draft Third edition of the IFRS for SMEs Accounting Standard (2022 Exposure Draft).
IFRS Foundation And EFRAG Publish Interoperability Guidance
This joint guidance describes the alignment of disclosure requirements and information that an entity starting with each set of standards needs to know to enable compliance with both sets of standards, ensuring interoperability between them. Regardless of whether it starts with European Sustainability Reporting Standards (ESRS) or International Sustainability Standards Board (ISSB) Standards, an entity can comply with the climate requirements of both sets of standards by following the content of this interoperability guidance.
ISSB To Commence Research Projects About Risks And Opportunities Related To Nature And Human Capital
The ISSB has commenced two new research projects on biodiversity, ecosystems and ecosystem services, and human capital. The research projects will focus on the common information needs of investors in assessing whether and how these risks and opportunities could reasonably be expected to affect a company’s prospects.
First Episode Of The ISSB Implementation Insights Podcast Available
The topics discussed in this first episode of the ISSB Implementation Insights podcast include the purpose of the Transition Implementation Group (TIG), submission guidelines and insights from the TIG members.
April 2024 ISSB Update And Podcast Available
In this podcast, ISSB Chair Emmanuel Faber and ISSB Vice-Chair Sue Lloyd share on topics discussed at the ISSB meeting in April 2024, including the decision to commence two new research projects on biodiversity, ecosystems and ecosystem services; and human capital, as well as the publication of new educational material on current and anticipated financial effects.
ISSB Publishes Digital Sustainability Taxonomy
This ISSB Taxonomy will enable investors to search, extract and compare sustainability-related financial disclosures as ISSB establishes its global baseline of standards. It reflects IFRS S1, IFRS S2 and guidance accompanying the standards.
MAS Issues Revised Form 5 (Auditor’s Report) And Form 6 (Auditor’s Certification)
The Monetary Authority of Singapore (MAS) has updated the format of Form 5 (Auditor’s Report – For a Holder of a Capital Markets Services Licence) and Form 6 (Auditor’s Certification – For a Holder of a Capital Markets Services Licence) (collectively, the “Forms”) which are required to be filed by capital markets services (CMS) licence holders under the Securities and Futures Act.
There is no change to the audit requirements for CMS licence holders. The Forms have been updated to align the terminologies with the Financial Reporting Standards in Singapore.
Please use the latest Form 5 and Form 6, available on the MAS website.
© 2024 Institute of Singapore Chartered Accountants
