Sustainability
The International Sustainability Standards Board (ISSB) has launched a consultation on its first two proposed standards setting out general sustainability-related disclosure requirements and climate-related disclosure requirements.
The proposals build upon the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) and incorporate industry-based disclosure requirements derived from the Sustainability Accounting Standards Board (SASB) Standards. The consultation ends on 29 July, with the ISSB planning to issue formal standards by the end of year.
The IFRS Foundation and Global Reporting Initiative (GRI) have announced a collaboration agreement under which their respective standard-setting boards, the International Sustainability Standards Board (ISSB) and the Global Sustainability Standards Board (GSSB), will seek to coordinate their work programmes and standard-setting activities.
Also, the ISSB has announced plans to integrate detailed standards developed by the SASB into its work. The ISSB will embed the industry-based approach used by the SASB into its standard-setting process, noting that this approach is valued by investors for producing decision-useful information and by preparers for producing cost-effective standards.
This progress comes as the International Federation of Accountants (IFAC) welcomed proposals from the US Securities and Exchange Commission (SEC) requiring companies registered with the agency to include certain climate-related disclosures in their registration statements and periodic reports. IFAC acknowledged that the proposals will allow policymakers and stakeholders worldwide to compare and contrast important initiatives that are taking place on climate-related disclosure.
The GRI has released a sector standard for coal designed to enable comprehensive and comparable sustainability disclosures by coal producers when they respond to climate change mitigation demands. The standard also deals with their social and environmental impacts.
The Value Reporting Foundation has published a revised Spanish-language version of its International Integrated Reporting Framework, including changes made in 2021 to improve the utility of the guidance in decision-making.
Auditing
The International Auditing and Assurance Standards Board (IAASB) has released an International Standard on Auditing (ISA) 600 (Revised), which addresses special considerations applying to group audits that may span multiple jurisdictions.
The new group audit standard comes into force for financial statements beginning on or after 15 December 2023.
IFAC has also released an implementation tool to help auditors implement the IAASB’s ISA 540 (Revised), Auditing Accounting Estimates and Related Disclosures.
Ethics
The International Ethics Standards Board for Accountants (IESBA) has expanded its definition of what accountants should consider a public interest entity (PIE) whose audits should be undertaken with additional care to ensure auditor independence. The new guidance advises when pension funds and public utilities should be considered PIEs, for instance.
Technology
IFAC has published guidance to help accountants comply with the International Code of Ethics for Professional Accountants when using artificial intelligence (AI) systems. Concerns include failures to challenge AI conclusions when accountants doubt their veracity.
Public sector
The International Public Sector Accounting Standards Board (IPSASB) has released a draft standard on accounting for retirement benefit plans. The proposal would require public sector employee retirement benefit plans to provide a complete view of their financial activities, assets and obligations.
Covid-19
The International Organization of Securities Commissions (Iosco) has published a report on the resilience of corporate bond markets during Covid-induced market stresses. Iosco is reviewing the sector to recommend ways to improve market functioning and liquidity supply under stress.
