The International Ethics Standards Board for Accountants (IESBA) has recommended revisions to its international code to address independence concerns for companies and individuals involved in an engagement to audit group financial statements.
The recommendations clarify and improve the independence standards that apply to individuals and companies participating in a group audit, as well as outline the mechanism for dealing with a breach of an independence condition at a component auditing company.
The IESBA is also hosting three global virtual roundtables to gather feedback on drafting an ethics standard addressing tax planning and associated services provided by professional accountants in business and public practice.
Sustainability
The International Organization of Securities Commissions (IOSCO) has approved a 2022 work plan aimed at improving sustainable finance. It entails combating greenwashing by producing trustworthy information on businesses’ sustainability implications to assist investors.
IOSCO will study the future International Sustainability Standards Board (ISSB) proposed climate and general sustainability disclosure requirements and provide recommendations to the 140 IOSCO member jurisdictions on how to adopt, apply, or be informed by the ISSB standards.
In parallel, IOSCO will advance efforts to build assurance standards.
The European Financial Reporting Advisory Group (EFRAG) general assembly has appointed members of the EFRAG Sustainability Reporting Board, who will represent the financial and business sectors, European Union (EU) governments, and civil society, including academia and trade unions.
It is in charge of all EFRAG sustainability reporting positions, including technical assistance to the European Commission on proposed EU sustainability reporting standards and revisions to current standards.
The Value Reporting Foundation’s SASB Standards Board has proposed adjustments to its guidelines on raw material traceability and sourcing regions for the garment industry. The purpose is to provide more information on sourcing locations, including ‘tier 4’ suppliers (such as fiber farms and plantations) and countries of origin for priority raw materials.
Accrual Accounting
The International Federation of Accountants (IFAC) has established a new digital portal, ‘Pathways to Accrual’, to assist governments and other public sector institutions in transitioning from cash to accrual accounting, with the backing of the International Public Sector Accounting Standards Board (IPSASB).
The platform provides guidance on adopting and implementing IPSAS, outlines the benefits and implications of accrual accounting, and suggests incremental ways.
Anti-money laundering.
IFAC has released the next installment in its ‘Anti-Money Laundering: The Basics’ guidance series, which focuses on how virtual assets such as Bitcoin and NFTs (non-fungible tokens) can be used to shift and conceal illegal proceeds.
