EU developments
The European Commission has proposed a European Union (EU) regulation creating a new EU-wide corporate registration system, designed to establish companies with pan-EU rights, with a minimum of administrative requirements and expense. Under the system, entrepreneurs and companies can establish an ‘EU Inc’ company within 48 hours, for less than €100, with no minimum share capital requirements. They will have access to all member states through one company information submission, via an EU interface connecting national business registers; and later a central EU register. EU Inc will obtain national tax identification and VAT numbers without resubmitting paperwork, said the commission.
The European Commission is also consulting on possible revisions to the criteria of the EU Taxonomy, its classification system for sustainable economic activities, designed to steer investment towards green projects. The changes are supposed to make the taxonomy simpler and easier to use, covering forestry, environmental protection, manufacturing, energy, transport and construction projects, and more.
Cryptocurrency
The US’s Securities and Exchange Commission has released clarified guidance with the Commodity Futures Trading Commission, stressing that in future many crypto assets and coins will not be regulated as securities. This includes functional digital commodities such as Bitcoin and Ether (where holders do not expect investment profits); digital collectibles; digital tools; and stablecoins. However, digital tokenised securities, represented by a crypto asset, which may grow in value and where the record of ownership is maintained on a blockchain, will be regulated as securities.
Sustainability
The Platform on Sustainable Finance, an adviser to the European Commission, has called for European Sustainability Reporting Standards to be better integrated with other EU sustainable finance systems. This includes the EU taxonomy regulation, the EU sustainable finance disclosure regulation and the EU benchmark regulation, with more harmony regarding definitions, scopes and methodologies.
The Sustainability Standards Board of Japan (SSBJ) has amended its Scope 3 (supply chain) greenhouse gas emissions reporting requirements to align with the recent updates to the International Sustainability Standards Board’s (ISSB) IFRS S2 standard on climate reporting. These changes allow entities to limit their Category 15 disclosures regarding emissions associated with loans and investments. The SSBJ has been pursuing alignment with ISSB standards.
International standards
The International Federation of Accountants (IFAC) has revised its Statements of Membership Obligations (SMOs) 1–7, committing IFAC members to support the adoption and implementation of international standards, while conducting robust quality assurance and investigation backed by disciplinary systems. Changes include ensuring firms align with international quality management standards; encouraging more flexible pathways into the profession; and integration into their work on expanding public sector and sustainability reporting standards.
The International Auditing and Assurance Standards Board (IAASB) and International Ethics Standards Board for Accountants (IESBA) have established a joint user advisory group channelling consultation and feedback from financial statement consumers. This will help influence IAASB and IESBA decisions on priorities, projects and broader initiatives.
Public sector
IFAC and the Chartered Institute of Public Finance and Accountancy have released the 2026 International Framework: Good Governance in the Public Sector, guiding public sector entities towards defining and achieving intended outcomes while acting in the public interest.
IFRS for SMEs
The IFRS Foundation has published educational resources to help accountants and their clients learn, apply and implement the IFRS for SMEs Accounting Standard through learning modules on valuing intangible assets other than goodwill; and share-based payments.
Financial instruments
The International Organization of Securities Commissions is consulting on proposed good-practice guidance regarding over-the-counter (OTC) commodity derivatives markets. The reform will impact how information on OTC positions is collected.
More information
Read our article ‘EU Inc receives mixed reaction’ on plans to create an EU-wide corporate registration system
Watch our video series of financial reporting insights with Adam Deller
