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IAASB Fact Sheet Addresses Engagement Team Definition

May 02, 2022

On May 2, 2022, the International Auditing and Assurance Standards Board (IAASB) released a new fact sheet to help users of its standards adapt to the clarified and updated definition of “engagement team”.

The new fact sheet addresses the clarified definition and its possible impacts, including recognition that engagement teams may be organized in a variety of ways, including across different locations or by the activity they are performing. The fact sheet also includes a diagram that walks users through who specifically is included and excluded.

Review the press release and fact sheet on the IAASB's website.

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Recordings of recent webinars on ISSB’s exposure drafts now available

Apr 29, 2022

On April 29, 2022, the IFRS Foundation posted the recording of its recent webinars on the ISSB’s proposed IFRS Sustainability Disclosure Standards.

The webinars lasted ap­prox­i­mately 60 minutes and discuss the following:

Review the press release on the IFRS Foundation's website.

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AcSB 2022-2027 Strategic Plan Feedback Statement

Apr 29, 2022

On April 29, 2022, the Accounting Standards Board (AcSB) released its 2022-2027 Strategic Plan, which includes conclusions reached on the significant comments received during our consultation process.

Review the press release on the AcSB's website.

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Updated IASB and ISSB work plan — Analysis (April 2022)

Apr 29, 2022

On April 29, 2022, the International Accounting Standards Board (IASB) updated its work plan following its April 2022 meeting. The work plan now also lists the projects of the ISSB.

Below is an analysis of all changes made to the work plan since our last analysis on March 28, 2022.

Standard-setting projects

  • Climate-related disclosures An ISSB project newly added to the workplan; feedback on the exposure draft will be discussed in H2 2022
  • Disclosure initiative — Subsidiaries without public accountability: Disclosures — The IASB has now discussed the feedback to the exposure draft; the next project step will be a decision on the project direction expected in June 2022
  • General sustainability-related disclosures An ISSB project newly added to the workplan; feedback on the exposure draft will be discussed in H2 2022
  • Management commentary — The IASB has now discussed the feedback to the exposure draft; the next project step will be a decision on the project direction (no date given)
  • Second comprehensive review of the IFRS for SMEs An exposure draft is now expected in Q3 2022 (previously H2 2022)

Maintenance projects

Research projects

Other projects

  • no changes

The revised IASB work plan is available on the Board's website.

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ISSB forms working group to enhance compatibility between global baseline and jurisdictional initiatives

Apr 27, 2022

On April 27, 2022, the International Sustainability Standards Board (ISSB) formed a working group comprised of several jurisdictions to enhance the compatibility between the ISSB’s exposure drafts on sustainability disclosures and jurisdictional initiatives.

Specifically, the working group will “discuss compatibility of those initiatives to establish how the global baseline, fully responding to the needs of global market participants, can contribute to optimizing reporting efficiency for companies in those jurisdictions and how those jurisdictions can build upon the global baseline according to their needs.”

The working group consists of members from the Chinese Ministry of Finance, the European Commission, the European Financial Reporting Advisory Group, the Japanese Financial Services Authority, the Sustainability Standards Board of Japan Preparation Committee, the United Kingdom Financial Conduct Authority and the US Securities and Exchange Commission.

Review the press release on the IFRS Foundation’s website.

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

Watch IESBA'S global webinar on the proposed revisions relating to the definition of engagement team and group audits

Apr 27, 2022

Recently, the International Ethics Standards Board for Accountants (IESBA) hosted two global webinars on the Board's exposure draft, Proposed Revisions to the Code Relating to the Definition of Engagement Team and Group Audits.

Both webinars provided an overview of the exposure draft and opportunities for stakeholders to participate in a questions and answers session with the presenters. 

The proposals in the Exposure Draft establish provisions that comprehensively address independence considerations for firms and individuals involved in an engagement to perform an audit of group financial statements. The proposals also address the independence implications of the change in the definition of an engagement team―a concept central to an audit of financial statements―in the International Auditing and Assurance Standards Board's (IAASB) International Standard on Auditing (ISA) 220, Quality Management for an Audit of Financial Statements. The proposals were developed in close coordination with the IAASB's group audits and quality management projects.

Review the press release on the IESBA's website.

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IASB issues project summary on pension benefits that depend on asset returns project

Apr 26, 2022

On April 26, 2022, the International Accounting Standards Board (IASB) published its project summary "Pension Benefits that Depend on Asset Returns". The project summary provides an overview of research and deliberations on the project.

Following the 2015 Agenda Consultation, the Board has been considering whether to propose amendments to IAS 19 for pension benefits that depend on the return on a specified pool of assets (reference assets). The pension benefits to be paid to employees reflect the variability inherent in the reference assets, yet IAS 19 requires a discount rate that reflects high-quality corporate bonds. Applying the IAS 19 discount rate can overstate the pension liability, producing information that is not relevant to users of financial statements. At the IASB meeting in October 2021, the staff recommended the Board propose that an entity estimate the ultimate cost of providing pension benefits that vary with asset returns applying the IAS 19 discount rate, but only when the IAS 19 discount rate is lower than the expected rate of return on the reference assets. Only 5 IASB members voted to continue the project and therefore the project will be stopped. All Board members supported the staff recommendation to consider any further work as part of the Third Agenda Consultation.

Review the press release on the IFRS Foundation’s website.

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PSAB’s 2022 – 2027 Strategic Plan Feedback Statement

Apr 21, 2022

On April 21, 2022, the Public Sector Accounting Board (PSAB) released its Feedback Statement for the Draft 2022-2027 Strategic Plan Consultation Paper, which provides an overview of key feedback received by stakeholders and how PSAB responded.

Review the following information on PSAB's website:

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

IESBA broadens definition of public interest entity

Apr 19, 2022

Auditors following global standards will want to review new guidance released by the International Ethics Standards Board for Accountants that broadens the definition of a public interest entity and complements other recently revised provisions to the International Code of Ethics for Professional Accountants.

Review the press release and article on the IESBA's website.

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Canadian securities regulators reduce regulatory burden related to the interpretation of the primary business requirements

Apr 14, 2022

On April 14, 2022, the Canadian Securities Administrators (CSA) published changes to harmonize the interpretation of the financial statement requirements for a long form prospectus, such as in an issuer’s initial public offering (IPO). Specifically, the changes apply in situations where an issuer has acquired a business, or proposes to acquire a business, that a reasonable investor would regard as being the primary business of the issuer. The changes were informed by stakeholder feedback that certain inconsistent interpretations of the primary business requirements add time, cost and uncertainty for issuers.

The changes provide additional guidance on the interpretation of primary business including in what situations, and for which time periods, financial statements would be required. They provide guidance on the circumstances when additional information may be necessary for the prospectus to meet the requirement to contain full, true and plain disclosure of all material facts relating to the securities being distributed. The changes also clarify when an issuer can use the optional tests to calculate the significance of an acquisition, and when an acquisition of a mining asset would not be considered an acquisition of a business for securities legislation purposes.

Review the press release on the CSA's website and the changes on the OSC's website.

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