News

AASB Image

AASB approves narrow-scope amendments to CAS 700 and CAS 260

Nov 01, 2023

On November 1, 2023, the Public Interest Oversight Board (PIOB) certified the International Auditing and Assurance Standards Board’s (IAASB) due process for ISA 700 (Revised) and ISA 260 (Revised) and the IAASB has released the final standards

At the September 12-13, 2023, board meeting the AASB approved narrow-scope amendments to CAS 700, Forming an Opinion and Reporting on Financial Statements, and CAS 260, Communication with Those Charged with Governance, subject to the PIOB’s due process certification.

The narrow-scope amendments to CAS 700 and CAS 260 will become effective for audits of financial statements for periods beginning on or after December 15, 2024. The narrow-scope amendments were issued in the Handbook in November 2023.

Access the project status on the FRAS Canada website.

PSAS - IPSASB Image

IPSASB Consultation: Stakeholder Feedback on Proposed Five-Year Strategy and Work Program

Oct 30, 2023

On October 03, 2023, The International Public Sector Accounting Standards Board (IPSASB) opened a consultation to hear stakeholder feedback on its proposed strategy and work program for 2024-2028.

The consultation provides an opportunity for constituents to comment on the IPSASB’s proposed Strategic Objective, and the two main activities to deliver on the Strategic Objective.

In addition to the proposed new maintenance activities and the priorities for these, constituents are also asked to comment on potential future Financial Reporting Work Program priorities, and what the key public sector sustainability reporting issues the IPSASB should consider adding to its Work Program.

The consultation is open for public comment until February 15, 2024.

Review the consultation on the IPSASB website.

CPAB Image

Canadian audit quality roundtable addresses current state and emerging risks

Oct 30, 2023

On October 30, 2023, the Canadian Public Accountability Board (CPAB), the Office of the Superintendent of Financial Institutions (OSFI) and the Canadian Securities Administrators (CSA) co-hosted the Canadian Audit Quality Roundtable in Toronto. The roundtable provided an important forum to discuss key issues and priorities that are needed to support the integrity of financial reporting in Canada.

The topics discussed include:

  • Risks impacting external audits
  • The role of governance and culture within an audit firm, particularly with regards to audit quality
  • Observations on the implementation of the new Canadian auditing standard on quality management systems
  • Fraud detection and prevention
  • Developments in sustainability and climate disclosure reporting standards and practices
  • Risks related to emerging technologies, including artificial intelligence
  • IFRS 17 Insurance Contracts implementation

Roundtable participants reaffirmed their shared commitment to fostering a robust Canadian financial system by maintaining open and proactive engagement, acting on issues early and in a coordinated manner.

Access the news release on the CPAB website.

IFRS - IASB Image
ISSB Image

Updated IASB and ISSB work plan — Analysis (October 2023)

Oct 30, 2023

Following the IASB's and ISSB's October 2023 meetings, we have analysed the work plan on the IFRS Foundation website to see what changes have resulted from the meetings and other developments since the work plan was last revised in September 2023.

Below is an analysis of all changes made to the work plan since our last analysis on September 26,2023.

Standard-setting projects

  • Business Combinations — Disclosures, Goodwill and Impairment — An exposure draft is expected in Q1 2024 (previously H1 2024)
  • Disclosure Initiative — Subsidiaries without Public Accountability: Disclosures— An IFRS Accounting Standard is now expected in Q2 2024 (previously H1 2024)
  • Second Comprehensive Review of the IFRS for SMEs Accounting Standard— The IFRS for SMEs Accounting Standard is now expected in H2 2024 (previously 2024)

Strategy and Governance

Maintenance projects

  • Amendments to the IFRS for SMEs — International tax reform — Pillar Two Model Rules — The project has been removed from the work plan due to the issuance of the IFRS for SMEsamendments on September 29, 2023
  • Climate-related and Other Uncertainties in the Financial Statements— A decision on the project’s direction is now expected in Q1 2024 (previously H1 2024)
  • International Applicability of the SASB Standards — The project is now considered a maintenance project; SASB amendments are expected in December 2023
  • Power purchase agreements — First feedback on the project resulting from the discussions of the IASB advisory groups will be discussed in December 2023
  • Provisions —Targeted Improvements — A decision on the project direction is now expected in December 2023 (previously Q4 2023)

Research projects

Other projects

  • IFRS Accounting Taxonomy Update — Amendments to IAS 12, IAS 21, IAS 7 and IFRS 7 — The proposed IFRS Taxonomy update was published on October 5, 2023and feedback received will be discussed in Q1 2024
  • IFRS Accounting Taxonomy Update — Primary Financial Statements — The proposed IFRS Taxonomy update is now expected in H1 2024 (previously 2024)
  • IFRS Sustainability Disclosure Taxonomy— Discussion of the proposed taxonomy feedback is now expected in November 2023 (previously Q4 2023)

The above is a faithful comparison of the IASB and ISSB work plan on September 26, 2023, and October 30, 2023.

For access to the current work plan at any time, please click here.

ISSB Image

ISSB issues October 2023 update & podcast

Oct 26, 2023

On October 26, 2023, the International Sustainability Standards Board (ISSB) issued its October update focusing on the preliminary decisions of the ISSB, impacting various projects outlined in their work plan. Additionally, Chair Emmanuel Faber and Vice-Chair Sue Lloyd discussed these developments in the latest episode of the ISSB podcast.

The topics discussed include:

  • recent progress towards jurisdictional adoption of IFRS S1 and IFRS S2,
  • updates on recent progress some of their partners have made,
  • an update on capacity building and translations,
  • recent meetings with key stakeholders,
  • an update from their October board week; and
  • preliminary common themes from feedback to their agenda consultation.

The update and the podcast can be accessed on the IFRS Foundation website.

IAASB - Assurance Image

IAASB's Global Outreach Unveils Comprehensive FAQs on Materiality in Sustainability Assurance (ISSA 5000)

Oct 25, 2023

On October 25, 2023, the International Auditing and Assurance Standards Board (IAASB) published a comprehensive set of Frequently Asked Questions (FAQs), on materiality matters, to better help stakeholders navigate the recently proposed International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements.

The FAQ compilation addresses a variety of questions, including how the concept of materiality applies to sustainability reporting and assurance; the definition of double materiality; and how an assurance practitioner considers an organization’s “materiality process” during a sustainability assurance engagement, among other questions and answers.

The comment period for proposed ISSA 5000 is open until December 1, 2023. To promote broad and diverse participation in the ongoing public consultation, the IAASB has developed a stakeholder survey, which may be especially useful for stakeholders wishing to share less technical or overall feedback, and a response template.

Access the FAQ on the IAASB website.

All - AcSB Image

AcSB issues future domestic work plan consultation survey

Oct 23, 2023

On October 23, 2023, the Accounting Standards Board (AcSB) of Canada issued Future Domestic Work Plan Consultation surveys to gather input on potential domestic projects for its 2024-2025 Annual Plan and beyond. Through the survey, the AcSB would like to determine which additional projects to prioritize when residual resources become available.

The survey covers proposed projects under the domestic standards in the CPA Canada Handbook – Accounting:

  • Part II - Accounting Standards for Private Enterprises
  • Part III - Accounting Standards for Not-for-Profit Organizations
  • Part IV - Accounting Standards for Pension Plans

Access the surveys on the FRAS Canada website.

IESBA (International Ethics Standards Board for Accountants) (lt gray) Image

IESBA staff releases Q&As to support adoption and implementation of International Independence Standard on group audits

Oct 23, 2023

On October 23, 2023, the Staff of the International Ethics Standards Board for Accountants (IESBA) released a questions and answers (Q&A) publication on the pronouncement Revisions to the Code Relating to the Definition of Engagement Team and Group Audits. The revisions to the Code address holistically the various independence considerations in an audit of group financial statements.

The Q&A publication is designed to highlight, illustrate, or explain aspects of the revisions in the Code and is intended to complement the Basis for Conclusions for the final pronouncement. It will assist firms, national standards setters, and professional accountancy organizations in adopting and/or implementing the revisions. The Q&As will also assist regulators and audit oversight bodies, the corporate governance community, investors, preparers, educational bodies or institutions, and other stakeholders in understanding the revisions to the Code. 

The development of the Q&As has been informed by the IESBA’s extensive discussions and consultations with a wide range of stakeholders and the IESBA’s own deliberations during the development and finalization of the pronouncement.

The pronouncement is coming into effect for audits of financial statements and group financial statements for periods beginning on or after December 15, 2023, with early adoption permitted.

Access the Staff Q&A on the IESBA website.

WBCSD (World Business Council for Sustainable Development) Image

WBCSD publishes annual review of sustainability and integrated reports

Oct 20, 2023

On October 20, 2023, the World Business Council for Sustainable Developments (WBCSD) has published its 2023 annual review of its member companies' sustainability and integrated reports.

This year, it is titled "Delivering Impact in a Time of Complexity", marking the eleventh instalment of the ‘Reporting matters’ publication. It introduces an evolved evaluation framework designed to guide companies in an era of rapidly evolving reporting regulations and increased stakeholder expectations.

Access the report on the WBCSD website.

IFRS - IASB Image

IASB publishes proposals for amendments under its annual improvements project

Oct 16, 2023

On September 12, 2023, the International Accounting Standards Board (IASB) published an exposure draft IASB/AI/ED/2023/1 'Annual Improvements to IFRS Accounting Standards — Volume 11'. It contains proposed amendments to five standards as result of the IASB's annual improvements project. Comments are requested by December 11, 2023.

The IASB uses the annual improvements process to make necessary, but non-urgent, amendments to IFRSs that will not be included as part of another major project.

The exposure draft proposes the following amendments:

 Standard

Subject of proposed amendment

IFRS 1 First-time Adoption of International Financial Reporting Standards

Hedge accounting by a first-time adopter. The proposed amendment addresses a potential confusion arising from an inconsistency in wording between paragraph B6 of IFRS 1 and requirements for hedge accounting in IFRS 9 Financial Instruments.

IFRS 7 Financial Instruments: Disclosures

Gain or loss on derecognition. The proposed amendment addresses a potential confusion in paragraph B38 of IFRS 7 arising from an obsolete reference to a paragraph that was deleted from the standard when IFRS 13 Fair Value Measurement was issued.

IFRS 7 Financial Instruments: Disclosures (implementation guidance only)

Disclosure of deferred difference between fair value and transaction price. The proposed amendment addresses an inconsistency between paragraph 28 of IFRS 7 and its accompanying implementation guidance that arose when a consequential amendment resulting from the issuance of IFRS 13 was made to paragraph 28, but not to the corresponding paragraph in the implementation guidance.

IFRS 7 Financial Instruments: Disclosures (implementation guidance only)

Introduction and credit risk disclosures. The proposed amendment addresses a potential confusion in paragraph IG20C in the implementation guidance accompanying IFRS 7 because that paragraph fails to state that the example does not illustrate all the requirements in paragraph 35M of IFRS 7.

IFRS 9 Financial Instruments

Lessee derecognition of lease liabilities. The proposed amendment addresses a potential lack of clarity in the application of the requirements in IFRS 9 to account for an extinguishment of a lessee’s lease liability that arises because paragraph 2.1(b)(ii) of IFRS 9 includes a cross-reference to paragraph 3.3.1, but not also to paragraph 3.3.3 of IFRS 9.

IFRS 9 Financial Instruments

Transaction price. The proposed amendment addresses a potential confusion arising from a reference in Appendix A to IFRS 9 to the definition of ‘transaction price’ in IFRS 15 Revenue from Contracts with Customers while term ‘transaction price’ is used in paragraphs of IFRS 9 with a meaning that is not necessarily consistent with the definition of that term in IFRS 15.

IFRS 10 Consolidated Financial Statements

Determination of a ‘de facto agent’. The proposed amendment addresses a potential confusion arising from an inconsistency between paragraphs B73 and B74 of IFRS 10 related to an investor determining whether another party is acting on its behalf by aligning the language in both paragraphs.

IAS 7 Statement of Cash Flows

Cost method. The proposed amendment addresses a potential confusion in applying paragraph 37 of IAS 7 that arises from the use of the term ‘cost method’ that is no longer defined in IFRS Accounting Standards.

The exposure draft does not contain proposed effective dates for the proposed amendments as the intention is to decide on these after the exposure period. However, early application of the amendments is proposed to be permitted.

Review the press release and the exposure draft on the IFRS Foundation website.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.