Sustainability assurance
ACCA has produced a summary of the requirements in ISSA 5000, the standard that will eventually be used by almost all ACCA firms to provide guidance for the provision of assurance services for companies making sustainability disclosures, including those using European Sustainable Reporting Standards (ESRS). Read more about the proposed standard.
In the interim period, prior to ISSA 5000 being finalised and adopted in Ireland, ISAE (Ireland) 3000, Assurance Engagements Other Than Audits or Reviews of Historical Financial Information – Assurance of Sustainability Reporting in Ireland, will be used. The Irish Auditing and Accounting Supervisory Authority (IAASA) has adopted ISAE (Ireland) 3000 to be applied temporarily by auditors performing sustainability assurance engagements required by the European Corporate Sustainability Reporting Directive (CSRD).
ISAE (Ireland) 3000 applies to sustainability assurance reports issued on or after 15 December 2024
ISAE (Ireland) 3000 applies to assurance reports issued on or after 15 December 2024 and is likely to only be used for one year pending the finalisation of ISSA 5000. Limited amendments have been made to the international standard to ensure that it applies to sustainability assurance in engagements in Ireland, and that sustainability assurance providers are subject to appropriate ethical and quality management requirements.
CSRD amendments
Peter Burke, the Minister for Enterprise, Trade and Employment has signed SI No 498/2024 – The European Union (Corporate Sustainability Reporting) (No 2) Regulations 2024. Following engagement with the department on application difficulties with the original CSRD legislation, the SI makes a very small number of important text changes.
Sustainability newsletter
Accountancy Europe has issued its September 2024 Sustainability Update. The update includes details of Accountancy Europe’s new factsheet on the Corporate Sustainability Due Diligence Directive and links to a study on European Sustainability Reporting Standards (ESRS) early practices.
Corporate reporting review
The Financial Reporting Council (FRC) has published its Annual Review of Corporate Reporting 2023/24, setting out the findings of its monitoring of UK companies’ annual reports and accounts alongside its expectations for the upcoming reporting season.
The Financial Reporting Council notes a widening of the scope of climate-related reporting by companies
The report recommends improvements in the reporting of impairments and cashflows, and notes a widening of the scope of climate-related reporting by companies.
In addition, the FRC notes that the process for endorsing International Sustainability Standards Board (ISSB) standards for use in the UK has begun and, where relevant, companies are encouraged to familiarise themselves with these. The EU is, of course, using ESRS standards, which are already in issue and are described as ‘interoperable’ with the ISSB standards.
The IAASA has also issued its observations on selected corporate reporting issues for years ending on or after 31 December 2024. The report looks at arguably the most significant change to corporate reporting since the introduction of IFRS Accounting Standards in the early 2000s: the new rules on corporate sustainability reporting that apply to certain entities from 1 January 2024. The report includes links to guidance and an outline of IAASA’s planned approach to enforcement of the environmental, social and governance reporting requirements
Irish auditing standards updates
The IAASA has updated the Irish auditing standards to reflect the conforming amendments required due to the revision of ISA (Ireland) 600, Audits of Group Financial Statements (Including the Work of Component Auditors) in February 2023.
The revised standard is effective for financial periods beginning on or after 15 December 2023. Nearly every standard has been updated, including ISQM 1, but the amendments are all minor context and referencing changes. Read more about the updated standards.
More information
ACCA’s annual virtual conference Accounting for the Future includes multiple sessions on sustainability topics. Register to watch live on 26-28 November or on demand. Up to 21 units of CPD are available.
