Sustainability
The Big Four accounting firms are among 65 major organisations to have endorsed a joint statement that calls for a coordinated approach by promoters of international sustainability standards. A joint statement developed by the International Federation of Accountants (IFAC), the World Business Council for Sustainable Development (WBCSD) and Principles for Responsible Investment (PRI) said the International Sustainability Standards Board (ISSB), the US Securities & Exchange Commission (SEC) and the European Financial Reporting Advisory Group (EFRAG) should work closely together.
The ISSB’s new Sustainability Consultative Committee (SCC) has now started work on advising the board on priority sustainability matters and related technical protocols, as well as interdependencies between sustainability issues. Four permanent members of the SCC – the International Monetary Fund, the Organisation for Economic Co-operation and Development (OECD), the United Nations, and the World Bank – will be joined by seven expert advisers, including the Global Steering Group for Impact Investment.
The Global Reporting Initiative (GRI) has announced that 552 companies from Latin America have participated in its Sustainability Reporting for Responsible Business (SRRB) programme, boosting their sustainable development, sustainability strategies, data collection and engagement with customers, suppliers and communities. The GRI said 82% were in Peru, with Argentina, Ecuador, Colombia, Costa Rica and Guatemala businesses also participating.
The World Benchmarking Alliance (WBA) is seeking a research provider to deliver its sustainability benchmarks related to the food and agriculture sector in 2023 – its Food and Agriculture Benchmark and the Nature Benchmark.
A meeting of African Ministers of Finance, Economy and Environment, with the Egypt International Cooperation Forum, has called on the ISSB to work closely with African regulators and accountants to provide strong advisory and capacity building support to achieve early adoption of the ISSB’s Standards in Africa.
The 2021 annual report for EFRAG has highlighted that the delivery of draft sustainability standards by November will be ‘challenging’. But in a foreword, Patrick de Cambourg, chair of the EFRAG Project Task Force on European Sustainability, stressed that the European Commission has ‘to follow important steps’ in the coming year before adopting and publishing formal guidance.
IFRS for SMEs
The International Accounting Standards Board (IASB) has released comprehensive plans to reform the IFRS for SMEs (small-and-medium-sized enterprises) accounting standard. Key planned changes include simplified fair value measurements and disclosures. They also include a new revenue recognition model, aligning with IFRS 15 on customer contract revenues. It would also be amended to reflect new requirements in IFRS 3 Business Combinations, IFRS 9 Financial Instruments, IFRS 10 Consolidated Financial Statements and IFRS 11 Joint Arrangements.
Anti-corruption measures
The International Federation of Accountants (IFAC) has issued an action plan to help the accountancy profession fight corruption, money laundering, bribery, fraud and tax evasion. Its Action Plan for Fighting Corruption and Economic Crime sets out specific actions regarding education, policymaking, developing and following global standards, creating anti-crime partnerships, and advocacy.
Ethics
The International Ethics Standards Board for Accountants (IESBA) has released the 2022 edition of its Handbook of the International Code of Ethics for Professional Accountants (including International Independence Standards). It incorporates revisions effective from December 2022 regarding the code’s guidance on non-assurance services and fees, ensuring the objectivity of engagement quality reviewers, and improvements to quality management.
Capital markets
The Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) and the International Organisation of Securities Commissions (IOSCO) have published a report that focuses on issues concerning client clearing. It considers issues relating to access to central counterparties (CCPs) and effective porting practices. The aim is to increase the common understanding of new access models, effective porting practices, and to identify potential issues for possible follow-up work from the industry.
