AGS 1 is a compilation of commonly used sample independent auditor’s reports.
ISCA and the AGS 1 Sub-Committee have worked with EDB to develop additional procedures in relation to new reporting requirements under EDB’s tax incentive scheme. Appendix 5B, which pertains to an agreed-upon procedures report in connection with an example of an EDB tax incentive scheme, has been updated to include these procedures.
The additional procedures relate to the checking of tax incentive conditions such as qualifying business expenditure, fixed asset investments and employment conditions.
New ISA For LCE Guidance On Auditor Reporting
IAASB has released new supplemental guidance on auditor reporting as it relates to the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE). The new guidance, meant to be read with ISA for LCE, provides assistance for auditors about modifications to the auditor’s report when using the standard. The guidance also includes information on using emphasis of matter and other matter paragraphs, reporting on other information, and reporting on a material uncertainty related to going concern.
Additionally, the guidance features eight illustrative auditor’s reports, including examples of adverse opinions, disclaimer of opinions, and opinions when there is a material uncertainty related to going concern.
EP 100 (Revised On 8 August 2024) And Expected To Be Effective 15 December 2024
ISCA has issued EP 100 (revised on 8 August 2024) 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 definition of “public interest entity” (PIE) in the Glossary of EP 100 was revised to clarify on the entities that would be considered as PIEs locally.
Please click here for EP 100 (revised on 8 August 2024).
ISCA Comments On IASB’s ED Contracts For Renewable Electricity (Proposed Amendments To IFRS 9 And IFRS 7)
Entities are increasingly entering into power purchase agreements (PPAs) for renewable electricity to meet sustainability commitments. However, the unpredictable nature of renewable energy production results in no direct link between the seller’s production and buyer’s needs at the time of production. This poses challenges for entities applying the “own-use” exception in IFRS 9 and hedge accounting to such PPAs. IASB sought to address these challenges in this ED, as well as to require entities to disclose effects of such PPAs on their financial performance.
We are generally supportive of the ED’s proposals and have highlighted areas for further clarification to enhance scope and applicability of the requirements. We shared concerns about:
Read more in our comment letter.
ISCA Invites Comments On IASB’s ED
Please send all comments on the EDs to Professional Standards.
IASB Issues Annual Improvements To IFRS Accounting Standards
IASB has issued Annual Improvements to IFRS Accounting Standards – Volume 11. It contains amendments to IFRSs 1, 7, 9, 10 and IAS 7. These amendments are effective for annual reporting periods beginning on or after 1 January 2026 with earlier application permitted.
Webcast On Implementing IFRS 19
This webcast offers an overview of IFRS 19 and its benefits for eligible subsidiaries as well as practical insights into its implementation. The new accounting standard is expected to simplify reporting systems and processes for companies, reducing the costs of preparing eligible subsidiaries’ financial statements while maintaining the usefulness of those financial statements for their users.
IASB Completes Technical Decisions On Three Projects
IASB has concluded its technical decision-making on three of its projects:
(1) Second comprehensive review of IFRS for SMEs accounting standard with plans to issue the third edition in the first half of 2025;
(2) Redeliberations on the Rate-Regulated Activities project and moving on to the drafting of a new accounting standard; and
(3) Post-Implementation Review of IFRS 15 Revenue from Contracts with Customers with the publication of a project summary and feedback statement in the third quarter of 2024.
Q2 2024 IFRIC Podcast Available
In this podcast, IFRIC Chair and IASB member Bruce Mackenzie, and IASB member André Besson shared on IFRIC’s decisions made at its June 2024 meeting, focusing on the disclosure of revenues and expenses for reportable segments (IFRS 8).
July 2024 IASB Update And Podcast Available
In this month’s IASB Update and podcast, the topics discussed include Post-Implementation Review of IFRS 15, Rate-Regulated Activities project and Second Comprehensive Review of the IFRS for SMEs accounting standard.
New Webcast: Overview Of ESRS-ISSB Standards Interoperability Guidance
The webcast provides an overview of the ESRS-ISSB Standards Interoperability Guidance, published by the IFRS Foundation and European Financial Reporting Advisory Group (EFRAG) in May 2024. The aim of the webcast is to help explain the interoperability between the ISSB Standards and ESRS. The webcast also aims to show how companies applying both sets of standards can use the guidance material to comply with both.
Q2 2024 ISSB Implementation Insights Podcast Available
The topics discussed in this Q2 2024 episode of the ISSB Implementation Insights podcast include revision of preceding-period estimated amounts when estimating information from an entity in the value chain and application of the requirements on comparative information when acquiring or disposing of a subsidiary.
July 2024 ISSB Update And Podcast Available
In this month’s ISSB Update and podcast, ISSB Chair Emmanuel Faber and ISSB Vice-Chair Sue Lloyd share on topics discussed at the ISSB meeting in July 2024, including the publication of ISSB’s Feedback Statement on its next two-year work plan and developments in strategic relationships that deliver further harmonisation of the sustainability disclosure landscape.
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