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

FRC review of accounting and reporting for business combinations

Financial Reporting | 29 September 2022
The Financial Reporting Council (FRC) has published its thematic review of the accounting and reporting for business combinations. The review looks at annual reports and highlights features of better reporting and disclosures, whilst also highlighting areas for improvement.

IESBA guidance on application of IESBA code to technology-related scenarios

Audit and Assurance | 26 September 2022
The International Ethics Standards Board for Accountants (IESBA) and the Japanese Institute of Certified Public Accountants (JICPA) have jointly released Ethical Leadership In a Digital Era: Applying the IESBA Code to Selected Technology-Related Scenarios. This non-authoritative guidance provides seven hypothetical scenarios that highlight specific requirements in the IESBA code, in particular those related to compliance with fundamental principles of ethics, and auditor independence.

FRC Revisions to ISA (UK) 600

Audit and Assurance | 26 September 2022
The Financial Reporting Council (FRC) has published the revised ISA (UK) 600 (Revised September 2022) Special considerations – Audits of Group Financial Statements. This is effective for audits of financial statements for periods commencing on or after 15 December 2023, with early adoption permitted.

FRC report from the first year of structured digital reporting

Financial Reporting | 23 September 2022
The Financial Reporting Council (FRC) has published a report identifying the lessons learnt from the first year of mandatory structured digital reporting under the European Single Electronic Format (ESEF) regulation.

FRC guidance on IFRS 9 Expected Credit Loss accounting

Financial Reporting | 21 September 2022
The Financial Reporting Council (FRC) has published updated guidance on what good IFRS 9 Expected Credit Loss accounting (ECL) disclosures look like. This is the FRC’s third report and comprises good practice disclosure examples and other amendments to address gaps, deficiencies or to otherwise improve existing material.

FRC review of deferred tax asset disclosures

Financial Reporting | 21 September 2022
The Financial Reporting Council (FRC) has published its thematic review of deferred tax asset disclosures. The review includes example of good practice and highlights scope for improvement.

IESBA Code of Ethics Handbook 2022 edition 

Audit and Assurance | 9 September 2022 
The International Ethics Standards Board for Accountants (IESBA) have released the 2022 edition of the Handbook of the International Code of Ethics for Professional Accountants. This replaces the 2021 edition and includes revisions that will be come effective in December 2022. 

IASB publish proposals to update Accounting Standard for SMEs 

Financial Reporting | 8 September 2022 
The International Accounting Standards Board (IASB) of the IFRS Foundation published proposals to update the IFRS for SMEs Accounting Standard to reflect improvements made to full IFRS Accounting Standards, while keeping the Standard suitable for small and medium-sized entities. The deadline for comments is 7 March 2023. 

FRC publishes review of earnings per share 

Financial Reporting | 8 September 2022
The Financial Reporting Council (FRC) has published its thematic review of earnings per share. The review identifies how companies can improve their disclosure of earnings per share and highlights common errors in calculation and treatment. 

IFAC action plan to fight corruption and economic crime 

Audit and Assurance | 6 September 2022 
The International Federation of Accountants (IFAC) issued its action plan to enhance the accountancy profession’s commitment to fighting corruption and economic crime. This plan sets out more than 30 specific actions for IFAC and the accountancy profession related to education, evidence-based policy, global standards, partnership, and thought leadership.