ICAEW's Audit and Assurance Faculty brings you the latest technical updates on developments in auditing and assurance, financial reporting and ethics.

FRC proposes revisions to ISA (UK) 505

Audit and Assurance | 31 May 2023

The Financial Reporting Council (FRC) has published proposed revisions to International Standard on Auditing (UK) 505 External Confirmations. The revision reflects modern approaches to obtaining confirmations and the prohibition on negative confirmations. Deadline for comment 1 September 2023.

IPSASB issues package of revenue and transfer expense-related pronouncements

Financial Reporting | 31 May 2023

The International Public Sector Accounting Standards Board (IPSASB) has issued an integrated package of revenue and transfer expenses pronouncements which update and simplify existing procedures to better support implementation globally. These comprise Updated Conceptual Framework: Chapter 5, Elements in Financial Statements, International Public Sector Accounting Standard (IPSAS) 4, Revenue, and IPSAS 48, Transfer Expenses. 

IFAC announce memorandum of understanding between legal and accounting professions

Financial Reporting | 31 May 2023

The International Federation of Accountants (IFAC) and The International Bar Association (IBA) have announced a Memorandum of understanding (MoU) that formalises and demonstrates a commitment to closer cooperation between the two organisations and the legal and accountancy professions as a whole.  The MoU has a particular focus on anti-corruption and how the professions can work more closely together to fight against money-laundering and economic crime.

IFAC releases guidance to help deliver robust greenhouse gas reporting

Financial Reporting | 30 May 2023

The International Federation of Accountants (IFAC) has released new guidance to help professional accountants and finance professionals deliver robust greenhouse gas (GHG) reporting, in partnership with other professional bodies. It aims to guide CFOs, accountants, and finance professionals to build on existing systems and processes in order to undertake or enhance cost-effective and investor-grade GHG reporting. 

IASB begins planned review of IFRS 9 Financial instruments

Financial Reporting | 30 May 2023

The International Accounting Standards Board (IASB) has launched a call for stakeholders’ feedback on its post-implementation review of the expected credit loss requirements in IFRS 9 Financial Instruments. Deadline for comments 27 September 2023.

IPSASB issues package of measurement-related pronouncements

Financial Reporting | 29 May 2023

The International Public Sector Accounting Standards Board (IPSASB) has issued an integrated package of measurement-related pronouncements which provide simplified, more consistent guidance addressing key conceptual challenges and practical implementation. These comprise Updated Conceptual Framework: Chapter 7, Measure of Assets and Liabilities in Financial Statements, International Public Sector Accounting Standard (IPSAS) 45, Property, Plant and Equipment, and IPSAS 46, Measurement.

FRC launches Scalebox to promote competition and quality for smaller audit firms

Audit and Assurance | 25 May 2023

The Financial Reporting Council (FRC) has launched a new Scalebox initiative to assist smaller firms in conducting high-quality audits in the Public Interest Entity (PIE) market. All firms currently in Tier 2 and Tier 3 for FRC Supervision purposes are eligible to join the Scalebox as well as firms intending to enter the PIE audit market.

IASB increases transparency of companies’ supplier finance

Financial Reporting | 25 May 2023

The International Accounting Standards Board (IASB) has issued disclosure requirements to enhance the transparency of supplier finance arrangements and their effects on a company’s liabilities, cash flows and exposure to liquidity risk. The amendments, which affect IAS 7 Statement of Cash Flows, and IFRS 7 Financial Instruments: Disclosures, will become effective for annual reporting periods beginning on or after 1 January 2024.

FRC launches consultation on revision to the UK Corporate Governance Code

Audit and Assurance | 24 May 2023

The Financial Reporting Council (FRC) has launched a public consultation on proposed revisions to the UK Corporate Governance Code. This follows the UK Government's response to the White Paper, Restoring Trust in Audit and Corporate Governance, which identified areas of reform related to a particular focus on directors' responsibilities for internal control, risk, audit and corporate reporting. Deadline for comment 13 September 2023.

IFAC releases new placemat to guide audit committees to oversee sustainability-related disclosure

Financial Reporting | 24 May 2023

The International Federation of Accountants (IFAC) has released Key Questions for Audit Committees Overseeing Sustainability-Related Disclosure to prepare audit committees with effective questions to ask when overseeing sustainability and ESG related disclosures. 

IASB amends tax accounting requirements to help companies respond to international tax reform

Financial Reporting | 23 May 2023

The International Accounting Standards Board (IASB) has issued amendments to IAS 12 Income Taxes. The amendments give companies temporary relief from accounting for deferred taxes arising from the Organisation for Economic Co-operation and Development’s (OECD) international tax reform.

FRC publishes minimum standard for audit committees

Audit and Assurance | 22 May 2023

The Financial Reporting Council (FRC) has announced the Audit Committees and the External Audit: Minimum standard, following a consultation on the draft proposal. The primary objective of Standard is to enhance performance and ensure a consistent approach across audit committees within the FTSE350.

IFRS for SMEs: effects of climate-related matters on financial statements

Financial Reporting | 16 May 2023

The IFRS foundation published education material to illustrate how the IFRS for SMEs Accounting Standard requires companies to consider climate-related matters that have a material effect on the financial statements. 

ISSB consultation for enhancing SASB standards

Financial Reporting | 11 May 2023

The International Sustainability Standards Board (ISSB) is seeking feedback on its proposed methodology for enhancing the international applicability of the SASB standards. The ISSB hope to make it easier for companies to apply the SASB Standards regardless of where they operate and assist companies applying IFRS S1 to produce comparable and useful disclosures.  Deadline for comments is 9 August 2023.

IPSASB issues public sector guidance on sustainability program information

Financial Reporting | 09 May 2023

The International Public Sector Accounting Standards Board (IPSASB) has issued Reporting Sustainability Program Information – Amendments to RPGs 1 and 3: Additional Non-Authoritative Guidance. The additional guidance is intended to support the implementation of the key areas highlighted in the OECD paper Green Budgeting: A Way Forward. 

ISSB consultation on priorities over the next two years

Financial Reporting | 04 May 2023

The International Sustainability Standards Board (ISSB) is seeking feedback on its priorities for its next two-year work plan. Based on research the ISSB has identified four potential projects, three of which are sustainability related. Deadline for comments is 1 September 2023.