Technical update

Ethics

The International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA) have launched a joint initiative to boost implementation of their new standards designed to build trust and transparency in sustainability reporting and assurance. The two standards, the International Standard on Sustainability Assurance 5000 (ISSA 5000) and the International Ethics Standards for Sustainability Assurance (IESSA) become effective from 15 December 2026, with early adoption encouraged. Alongside the final published standards, both bodies are releasing implementation guides, factsheet, FAQs, videos and webinars.

The Public Interest Oversight Board (PIOB) has certified IESBA’s Global Ethics Sustainability Standards, while the International Organisation of Securities Commissions (IOSCO) has called on its members to use this guidance. The PIOB commended the IESBA and IAASB for ‘leadership in addressing the evolving global demand for sustainability-related standards within a challenging timeframe.’

Sustainability

The IAASB has formalised plans to work with the conformity assessment-related International Accreditation Forum (IAF) to boost high-quality sustainability assurance. Read the AB article. The IAF has pledged to support using the IAASB’s International Standard on Sustainability Assurance 5000 (ISSA 500), in accredited verification activities where appropriate.

The International Accounting Standards Board (IASB) and the International Sustainability Standards Board (ISSB) are holding a joint meeting to consider the implications of the IASB’s planned guidance on reporting the effects of climate-related and other environmental uncertainties in its financial statements. Discussions are designed to help the IASB decide how to integrate such guidance into its standards.

The IFRS Foundation has released a guide helping companies report only climate-related information under a first-year phase-in of ISSB sustainability reporting, which allows them to deliver limited reporting under IFRS S1 on general sustainability assessments. These can focus on climate issues only – the guidance explains how this is done.

The IFRS Foundation has released a directory of ongoing and recently completed national and supranational consultations on how to regulate sustainability-related disclosures. Open consultations highlighted cover Indonesia and Qatar.

The Global Reporting Initiative (GRI) and the Africa Securities Exchange Association are collaborating to improve sustainability data usage by listed companies on the continent. They have been staging information awareness events, training workshops and developing ESG reporting guidelines.

The European Financial Reporting Advisory Group (EFRAG) has released a paper advising that many environmental disclosure requirements within its European Sustainability Reporting Standards (ESRS) can be built on data available within the European Commission’s pre-existing voluntary Eco-Management and Audit Scheme (EMAS). EFRAG noted that more than 4,100 organisations are already using EMAS to improve their environmental performance.

Auditing

The IAASB has requested final comments on its plans to amend its International Standards on Quality Management (ISQMs) and International Standards on Auditing (ISAs) regarding definitions of listed and public interest entities and more.

Public sector

The International Public Sector Accounting Standards Board (IPSASB) has issued amendments to its IPSAS Standards to minimise inconsistencies with IFRS Accounting Standards. Comparative uncertainties or ambiguities had been identified by the IFRS International Financial Reporting Interpretations Committee (IFRIC) and Standard Interpretations Committee (SIC).

Internal audit

The Institute of Internal Auditors (IIA) has released a Cybersecurity Topical Requirement, recommending a baseline approach for internal audits assessing cybersecurity, accounting for new recurring cyber-risks, and ensuring management has established effective internal controls.