Tax cooperation
Terms of reference for a United Nations Framework Convention on International Tax Cooperation have been agreed by an ad hoc UN committee, including integrating commitments on tackling tax avoidance and tax evasion, plus equitable taxation of multinationals. A UN member state-led negotiating committee will now meet in 2025, 2026 and 2027 for at least three sessions per year to complete and submit a final text to the UN General Assembly for approval. The plan was backed in the committee by 110 member states (including many emerging markets), with 44 abstentions and eight opposed – Australia, Canada, Israel, Japan, New Zealand, South Korea, the UK and US.
Equity method
The International Accounting Standards Board (IASB) is planning to publish draft rules on the equity method of accounting, amending IAS28, Investments in associates and joint ventures. It includes, for example, guidance on accounting for subsidiaries that change ownership.
Accounting taxonomy
The IASB has also proposed updates to the IFRS Accounting Taxonomy 2024 to reflect new and amended standards: the new IFRS19, Subsidiaries without public accountability: disclosures; changes to the Classification and measurement financial instruments, amending IFRS9, Financial instruments and IFRS7, Financial instruments: disclosures; and Annual improvements to IFRS accounting standards: Volume 11, issued in July (2024).
The IASB has also published proposed changes to the IFRS Accounting Taxonomy 2024 to reflect planned disclosure requirements for renewable electricity contracts tabled this May (2024).
Public sector standards
The International Public Sector Accounting Standards Board (IPSASB) has released proposed updates to its standards, helping governments and agencies adopt its accrual-based system. Their goal is to make the board’s accrual standard IPSAS 33 more user-friendly when first applied, with flexibility enabling transition and helping identify necessary accounting changes.
Auditing standards
The International Auditing and Assurance Standards Board (IAASB) has issued new guidance on applying the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE). This advice will help users decide when to use the standard, notably aiding auditors, legislators and regulators implementing the standard, and firms developing policies or procedures.
The IAASB has also released a 2023-24 edition of its Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements, which includes the revised International Standard on Auditing (ISA) 600, Special considerations for audits of group financial statements; and IAS for LCE.
Ethics
The International Ethics Standards Board for Accountants (IESBA) has released guidance for accountants and auditors looking to apply standards on assessing public interest entities (PIE), where a jurisdiction has no PIE definition.
IESBA has also published its 2024 Handbook of the International Code of Ethics for Professional Accountants. It includes changes over defining PIEs, plus definitions of ‘audit client’ and ‘group audit clients’.
Sustainability
The Global Reporting Initiative (GRI) has signed a memorandum of understanding (MoU) with the International Foundation for Valuing Impacts (IFVI), which develops sustainability information on the monetary valuation of the impact of carbon emissions and other climate-changing pollution. The two bodies will, for example, collaborate on boosting uptake of each other’s methodologies, approaches and standards; mutually promoting research, thought leadership, events and other activities.
The CDP (formerly the Carbon Disclosure Project) is collaborating with the Partnership for Carbon Accounting Financials (PCAF) of 500 financial institutions reporting emissions associated with their work and investments. CDP is offering tools to navigate evolving sustainability disclosure requirements, including questionnaires on portfolio impacts.
Internal audit
The European Confederation of Institutes of Internal Auditing has released guidance on the new comprehensive European Union (EU) anti-money laundering and combating the financing of terrorism (AML/CFT) reform package. It advises on how internal auditors should comply with the new single rule book for reporting suspicious transactions and understand the new Anti-Money Laundering Authority (AMLA) in Frankfurt, beginning operations by July 2025.
More information
ACCA’s annual virtual conference, Accounting for the Future, features sessions on technical and regulatory issues including Upskilling for changes in IFRS presentation and disclosure, focusing on IFRS 18 and IFRS 19 and featuring an update from the IASB on its future workplan.
Register to attend live or on demand.
