Sustainability
The International Sustainability Standards Board (ISSB) has released amendments to greenhouse gas emissions disclosure requirements under its IFRS S2 standard on climate-related disclosures. The changes cover reporting beginning on or after 1 January 2027, and follow ISSB consultation during 2025, delivering reliefs and clarifications. Early use of the changes is permitted, with the ISSB saying it has kept investor information needs in focus, minimising disruption to jurisdictions adopting or using IFRS Sustainability Disclosure Standards. The changes, for example, allow the use of classification systems beyond the MSCI/S&P’s Global Industry Classification Standard to disaggregate information about financed emissions.
The European Commission has issued guidance to help European Union sustainability reporters prepare for incoming simplified disclosure rules when using the EU’s taxonomy for sustainable economic activities. This will take account of the amendments to European Sustainability Reporting Standards (ESRS) following the Omnibus Taxonomy Delegated Act adopted by the EU executive in July 2025.
The European Financial Reporting Action Group has published a basis for conclusions and four related documents to help accountants and sustainability reporters understand its new draft simplified ESRS, released in December 2025.
The Global Reporting Initiative (GRI) has released a review concluding that 73% of 30 academic studies published between 2010 and 2025 showed that the disclosure of sustainability impacts by companies had improved their financial performance, particularly when following globally accepted reporting standards. Six of the papers had mixed or inconclusive results, and only two concluded sustainability reporting harmed business success.
Ethics
The International Ethics Standards Board for Accountants (IESBA) has launched a new policy programme designed to improve the ethical culture of accountancy firms worldwide. The board will discuss new ‘IESBA Viewpoints’ to support ethical leadership, governance or incentives which influence ethical corporate culture and behaviour in accountancy firms. The discussions will take place in the first half of 2026 and inform the development of a global baseline on the topic.
Assurance
The International Auditing and Assurance Standards Board (IAASB) has updated its requirements for using external experts in assurance. The changes amend several standards: ISA 620 on the work of an auditor’s expert, ISRE 2400 on engagements to review historical financial statements, ISAE 3000 on assurance engagements other than audits or reviews of historical financial information, and ISRS 4400 on engagements with agreed-upon procedures.
The IAASB has also developed an approach for updating ISA for LCEs, its audit standard for less complex entities. Future revisions should reflect the typical nature and circumstances of these organisations, while aligning proportionately with the core concepts of international auditing standards. The approach defines IAASB procedures when developing ISA for LCE revisions.
Education standards
The International Federation of Accountants (IFAC) has published its 2026 Handbook of International Education Standards. The document contains the full suite of International Education Standards (IES) 1–8, with a supporting framework and glossary, incorporating all recently revised and updated standards. IES 1–6 address entry requirements to professional accounting education programmes and the professional development of aspiring accountants, IES 7 covers lifelong learning, and IES 8 competences to be held by engagement partners responsible for financial statement audits.
Financial markets
A review by the Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO) has concluded that the international system for implementing margin requirements for non-centrally cleared derivatives is effective and should be maintained. A BCBS-IOSCO working group on margining requirements recommends that monitoring should be ongoing.
More information
ACCA’s annual virtual Accounting for the Future conference is available on demand and offers over 21 units of free CPD. Sessions include cyber risk and organisational accountability; ethical culture and governance; and sustainability reporting.
