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Technical Highlights

ISCA Comments On IAASB’s Exposure Draft (ED): Proposed ISA 240 (Revised), The Auditor’s Responsibilities Relating To Fraud In An Audit Of Financial Statements

ISCA provided comments on IAASB’s ED on proposed ISA 240 (Revised).

One key revision is new requirements for the auditor to communicate key audit matters (KAMs) related to fraud and, if there are no KAMs related to fraud to communicate, the auditor needs to include a statement to that effect in the auditor’s report.

We shared concerns that the requirement to specifically identify fraud-related KAMs may lead to the perception that the auditor has directed greater work effort in relation to fraud as compared to other significant risks. Also, a statement indicating that there are no KAMs related to fraud may be misconstrued as an affirmative statement by the auditor that there is no fraud. These could perpetuate the misconception regarding the auditor’s responsibility in relation to fraud, and further widen the expectation gap.

Click here to read our detailed comments.

IASB Proposes IFRS Accounting Taxonomy Update For IFRS 18

The proposed changes to the IFRS Accounting Taxonomy include: (1) line-item modelling for conveying category information (such as operating, investing, financing) for the statement of profit or loss; and (2) dimensional modelling for tagging disclosures on management-defined performance measures and specified expenses by nature, as these link to information in the statement of profit or loss. The deadline for submission of comments is 3 September 2024.

IASB Webcast Series On Proposals In ED Business Combinations – Disclosures, Goodwill And Impairment

In this webcast series, IASB members and technical staff discuss the proposals in the ED on improving the disclosure requirements about acquisitions and the impairment testing of cash-generating units containing goodwill.

IASB Webcast On Proposals In ED Contracts For Renewable Electricity

In this webcast, IASB technical staff members discuss the proposals in the ED which aim to ensure that financial statements more faithfully reflect the effects that renewable electricity contracts have on a company.

IASB Issues Narrow-Scope Amendments To Classification And Measurement Requirements For Financial Instruments

The amendments respond to feedback from the 2022 Post-Implementation Review on the classification and measurement requirements of IFRS 9 Financial Instruments. These include clarifying the classification of financial assets with environmental, social and corporate governance (ESG) and similar features, and settlement of liabilities through electronic payment systems. The amendments are effective for annual reporting periods beginning on or after 1 January 2026.

May 2024 IASB Update And Podcast Available

In this month’s IASB Update and Podcast, the topics discussed include stakeholder feedback from the ED related to the Financial Instruments with Characteristics of Equity project; and developments in the Post-Implementation Review of IFRS 9 – Impairment project. In addition, the Update includes other topics such as Post-Implementation Review of IFRS 15 Revenue from Contracts with Customers and Second Comprehensive Review of the IFRS for SMEs Accounting Standard.

June 2024 Agenda And Meeting Papers Available

  • Due Process Oversight Committee

At the Due Process Oversight Committee meeting from 4 to 6 June 2024, topics discussed include updates on the technical activities of IASB, IFRS Interpretations Committee and ISSB, summary of feedback and IASB’s responses on Post-Implementation Review of IFRS 9 – Impairment and approval to publish the Proposed IFRS Taxonomy Update based on the ED Contracts for Renewable Electricity.

  • IFRS Interpretations Committee

At the IFRS Interpretations Committee meeting on 11 June 2024, topics discussed include Disclosure of Revenues and Expenses for Reportable Segments (IFRS 8) and Classification of Cash Flows related to Variation Margin Calls on ‘Collateralised-to-Market’ Contracts (IAS 7).

  • Capital Markets Advisory Committee And Global Preparers Forum

At the joint Capital Markets Advisory Committee and Global Preparers Forum meeting on 13 and 14 June 2024, topics discussed include Intangible Assets project, Business Combinations – Disclosures, Goodwill and Impairment, Statement of Cash Flows and Related Matters and updating IFRS 19.

Webcast On Introducing ISSB Taxonomy

In this webcast, ISSB Vice-Chair Sue Lloyd and ISSB Technical Staff Tim Kasim introduced the ISSB Taxonomy, its key features, and its benefits for investors, companies and regulators.

May 2024 ISSB Update And Podcast Available

In this podcast, ISSB Chair Emmanuel Faber and ISSB Vice-Chair Sue Lloyd shared on topics discussed at the ISSB meeting in May 2024, including the recent publications on IFRS Sustainability Disclosure Taxonomy, and ESRS-ISSB Standards Interoperability Guidance. They also share on the upcoming publications, including new webcasts on current and anticipated financial effects, and the Inaugural Jurisdictional Guide for the adoption or other use of ISSB Standards.

IFRS Foundation Publishes Webcasts On Current And Anticipated Financial Effects

The two-part webcast, hosted by ISSB Vice-Chair Sue Lloyd and ISSB Technical Staff Gabriel Benedict, explained the overarching requirements for disclosing current and anticipated financial effects in IFRS S1 and IFRS S2. They also discussed the disclosure requirements about financial effects over the short, medium and long term, including the judgement needed for such disclosures, and requirements in the ISSB Standards that support application, including proportionality mechanisms.

GRI And IFRS Foundation Collaboration To Deliver Full Interoperability That Enables Seamless Sustainability Reporting

This collaboration will optimise how the Global Reporting Initiative (GRI) and ISSB Standards can be used together to facilitate reporting on an organisation’s impacts, risks and opportunities, including risks that arise from the organisation’s impacts.

Jurisdictions Representing Over Half The Global Economy By GDP Take Steps Towards ISSB Standards

The IFRS Foundation releases its Inaugural Jurisdiction Guide to assist regulators in implementing the ISSB Standards. It aims to help jurisdictions navigate the adoption journey and promote necessary consistency and quality for sustainability disclosure.

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