Sustainability
As major jurisdictions increasingly adopt sustainability reporting standards developed by the International Sustainability Standards Board (ISSB), it has released a Jurisdictional Readiness Assessment Guide to help reporters follow resulting laws and regulations. The guide gives practical examples of experiences within 17 jurisdictions that have fully adopted ISSB standards and 16 jurisdictions that are taking steps to adopt these rules. Major markets that have finished this work include Australia, Brazil, Hong Kong SAR of China, and Mexico, with Canada, the Chinese mainland, Singapore, South Korea and Switzerland among those currently adopting ISSB-based reporting systems. This comes as the UK has adopted a final version of its ISSB-based sustainability reporting standards for voluntary use.
In the US, the California Air Resources Board has approved the California Greenhouse Gas Reporting and Climate Financial Risk Disclosure Initial Regulation, which helps introduce a climate disclosure reporting system accepting reports based on ISSB standards.
The ISSB has also approved changes to three sector-focused Sustainability Accounting Standards Board standards: agricultural products; meat, poultry and dairy; and electric utilities and power generators.
Reporting standards
The International Accounting Standards Board is consulting on proposed amendments to IAS 28, Investments in Associates and Joint Ventures, clarifying which investments companies can measure when assessing fair value, in particular changing how the rule applies to insurance.
SME accounting
The International Financial Reporting Standards (IFRS) Foundation has released supporting materials for the third edition of the abridged IFRS for SMEs standard, issued in February and effective from 1 January 2027. The release includes educational materials, podcasts and webinars.
Public sector
The International Public Sector Accounting Standards Board (IPSASB) has proposed amendments to IPSAS 22, Disclosure of Financial Information About the General Government Sector, regarding linkages between IPSAS standards and the International Monetary Fund’s Government Finance Statistics Manual 2014 (GFSM 2014). The board noted that governments use IPSAS standards to prepare financial statements and GFSM 2014 to compile statistical reports. The proposed guidance will help public sector bodies better integrate accounting and statistical systems, helping IPSAS-based accounting data be used in GFSM 2014 reports.
Auditing
The International Auditing and Assurance Standards Board (IAASB) is reviewing ISA 540 (Revised), Auditing Accounting Estimates and Related Disclosures. The revisions have encouraged auditors to perform appropriate procedures over accounting estimates and related disclosures. The IAASB is checking whether the amended standard has worked or more changes are needed.
The IAASB has also published feedback from its technology quality management roundtables, exploring how emerging technologies, including AI, are affecting audit and assurance engagements. Participants said IAASB quality management standards helped auditors handle technology-related risks, although additional IAASB practical guidance would be useful.
The global Monitoring Group of international financial institutions and regulatory bodies boosting international audit standard setting and audit quality has a new chair: Emily Fitts, the deputy chief accountant at the US Securities and Exchange Commission. The group’s members are the Basel Committee on Banking Supervision, the European Commission, the Financial Stability Board, the International Association of Insurance Supervisors, the International Forum of Independent Audit Regulators, the International Organization of Securities Commissions and the World Bank.
Future of the profession
The International Federation of Accountants (IFAC) has released research analysing the rapid growth of private equity investment in professional accountancy firms and its potential implications for the future of the profession. IFAC has identified more than 1,000 accountancy firms worldwide with private equity investment over the past 10 years, accelerating significantly since 2022, especially in continental Europe, the UK, Ireland and the US. The federation is assessing implications for transaction structures, firm oversight, independence and conflicts of interest, audit quality, consolidation, competition, and the profession’s attractiveness.
