The IAASB has released the 2020 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements. The latest edition of the handbook includes:

• ISA 540 (Revised), Auditing Accounting Estimates and Related Disclosures replacing ISA 540, Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures. The handbook also includes conforming and consequential amendments from ISA 540 to other standards, with the exception of International Auditing Practice Note 1000, which will be updated for changes to ISA 540 (Revised), and ISA 315 (Revised 2019) in the 2021 IAASB Handbook. ISA 540 (Revised) is effective for audits of financial statements for periods beginning on or after December 15, 2019.
• Changes for the conforming amendments arising from the restructured International Code of Ethics for Professional Accountants, issued by the International Ethics Standards Board for Accountants, have been made in Volume 1 and 2 of the 2020 IAASB Handbook.
• The following standards, which are not yet effective, have been included in the back of Volume 1 and 2:
• ISA 315 (Revised 2019), Identifying and Assessing the Risks of Material Misstatement
• Conforming and Consequential Amendments to Other ISAs Arising from ISA 315 (Revised 2019)
• International Standard on Quality Management (ISQM) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements
• ISQM 2, Engagement Quality Reviews
• ISA 220 (Revised), Quality Management for an Audit of Financial Statements
• Conforming and Consequential Amendments to Other ISAs Arising from the Quality Management Projects
• ISRS 4400 (Revised), Agreed-Upon Procedures Engagements

The handbooks can be downloaded from the IAASB website.

Coming Soon: New Online Platform for Digital Access

The first fully digital IAASB handbook will be available on a new web application, e-International Standards (eIS) soon. The platform is optimized for users through search functions, resources and references, and easy navigation. Follow the IAASB on Twitter and LinkedIn or register and subscribe via the IAASB website for launch details and announcements.

Reproducing and Translating the IAASB Handbook

To help adoption and implementation of the IAASB standards, stakeholders are invited to submit requests for permission to reproduce or translate the IAASB handbook online via the Online Permissions Requests or Inquiries system on the IFAC website.

Today, the International Federation of Accountants (IFAC) published a framework for implementing global sustainability standards at the local level, focusing on the building blocks approach published in May 2021. IFAC believes that jurisdictions must begin examining how global standards that the International Sustainability Standards Board (ISSB) intends to develop, starting with climate, can fit together with sustainability-related reporting requirements set at the jurisdictional level.

“As work to establish the ISSB advances, PAOs, firms, and professional accountants in business should be engaging now with their policymakers to consider what mechanisms may need to be established to make forthcoming reporting requirements effective in their jurisdiction,” said IFAC CEO Kevin Dancey. “IFAC’s framework sets out various pathways for local implementation of the IFRS initiative that can all lead to the global and harmonized corporate reporting system we need for investors, capital markets, and stakeholders at large.”

IOSCO’s Sustainability-related Issuer Disclosures report proposes a timeline for the ongoing work of the IFRS Foundation–with the ISSB climate standard expected to be completed by June 2022. Jurisdictions that begin engaging with policymakers now will be able to capitalize on the forthcoming standards–and therefore serve the public interest–as soon as they are finalized.

IFAC urges its member organizations to continue their support for the IFRS initiative, to engage now with local policymakers, and to provide feedback on the framework for making global sustainability standards local.

Read more about IFAC’s support for global sustainability-related standards here.

About IFAC
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

The IAASB has published new documents related to its open consultation on the audits of less complex entities:

• Proposed supplemental guidance on auditor reporting to provide further guidance on modifications and other changes to the auditor’s report when using the proposed standard; and
• “Mapping” documents to help users navigate between existing, equivalent International Standards on Auditing and the requirements in the newly proposed International Standard on Auditing for Less Complex Entities (ISA for LCE).

The IAASB strongly encourages all interested stakeholders to provide their feedback on the proposed standard by January 31, 2022. The standard is relevant to users of financial statements, owners, management and those charged with governance of entities, preparers of financial statements, legislative or regulatory authorities, relevant local bodies with standard-setting authority, professional accountancy organizations, academics, regulators and audit oversight bodies, and auditors and audit firms, among others.

Stakeholders can submit responses through the “Submit Comment” button online.

In preparation of its 3rd Research Forum, which will be co-hosted by Comparative International Governmental Accounting Research Network (CIGAR) at its June 2022 conference, the IPSASB is calling for scholarly contributions from the academic community.

Coordinated through the Academic Advisory Group, which includes independent scholars from all parts of the world, as well as the IPSASB members who have an academic background, IPSASB is offering a grant of USD $1,500 for selected scholarly papers submitted covering three research areas with up to six grants available in total.

The research areas of interest are:

Research Area 1: Research on Practical IPSAS Implementation Challenges 

• Differential Reporting 
• Discount Rates

Research Area 2: Research on Adoption and Implementation of Specific IPSAS

• IPSAS 31, Intangible Assets
• IPSAS 33, First-Time Adoption of Accrual Basis IPSAS

Research Area 3: Broad Future Focused Research

• Climate Change and Public Sector Financial Reporting Related to Sustainability 
• Financial Reporting Impacts of Digitization in the Public Sector

The grant recipients, as well as other scholars, will present the first drafts of their full papers at the 2022 Research Forum (date TBD). For more information, see the the IPSASB’s Call for Papers.

Learn more about the Academic Advisory Group.

About the IPSASB

The International Public Sector Accounting Standards Board® (IPSASB®) works to improve public sector financial reporting worldwide through the development of IPSAS®, international accrual-based accounting standards, for use by governments and other public sector entities around the world.

To continue to drive engagement and solicit feedback on its public consultation on a proposed new standard for audits of financial statements of less complex entities (LCE), the IAASB has published a targeted outreach plan. This plan details the IAASB’s focused efforts to facilitate feedback from different stakeholder groups through roundtables, presentations and other related activities. The plan is expected to evolve and will continue to be updated as events and activities are added or confirmed.

The landmark proposed new standard for audits of financial statements of less complex entities responds to demands to have a set of high-quality audit requirements tailored for the needs of less complex entities. The proposed new standard aims to provide a globally consistent approach at a time where several jurisdictional-specific less complex entities standards or related initiatives are arising.

The IAASB strongly encourages all interested stakeholders to provide their feedback on the proposed standard by January 31, 2022. The standard is relevant to users of financial statements, owners, management and those charged with governance of entities, preparers of financial statements, legislative or regulatory authorities, relevant local bodies with standard-setting authority, professional accountancy organizations, academics, regulators and audit oversight bodies, and auditors and audit firms, among others.

Stakeholders can submit responses through the “Submit Comment” button online. The Exposure Draft will also be available in French and Spanish in early September 2021.

About the IAASB
The International Auditing and Assurance Standards Board develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

"The significant impact of climate-related matters on organizations’ business models, cash flows, financial performance, and resiliency requires immediate attention not only due to increasing pressure from investors, regulators, and policy makers, but the urgency of the climate crisis itself,” said Kevin Dancey, IFAC CEO. “Climate scenario analysis and risk assessment can be complex, and accountants can help translate those risks and opportunities into numbers able to initiate much-needed action.”

Helen Brand, chief executive of ACCA added: “Collaboration is key to tackling the existential threats and risks that face economies and societies due to climate change. Professional accountants are therefore an essential part of this necessary joined-up thinking to drive good decision-making, and make the necessary links with the investment community and other stakeholders. Accountants’ skills and knowledge around around integrated reporting, encompassing capitals be they natural, financial, manufactured, human, social/relationship or intellectual, have a vital role in this global effort.”

Register now to join online September 20. A recording of the event will be available after the event. 

About Climate Week NYC  

Hosted annually by international non-profit the Climate Group in conjunction with the United Nations, and in partnership with the COP26 and the City of New York, Climate Week NYC is a global opportunity to come together to accelerate climate action and assess progress ahead of COP26. 

About ACCA 

We’re a thriving global community of 233,000 members and 536,000 future members based in 178 countries and regions, who work across a wide range of sectors and industries. We uphold the highest professional and ethical values.

We offer everyone everywhere the opportunity to experience a rewarding career in accountancy, finance and management. Our qualifications and learning opportunities develop strategic business leaders, forward-thinking professionals with the financial, business and digital expertise essential for the creation of sustainable organisations and flourishing societies.

Since 1904, being a force for public good has been embedded in our purpose. In December 2020, we made commitments to the UN Sustainable Development Goals which we are measuring and will report on in our annual integrated report.

We believe that accountancy is a cornerstone profession of society and is vital helping economies, organisations and individuals to grow and prosper. It does this by creating robust trusted financial and business management, combating corruption, ensuring organisations are managed ethically, driving sustainability, and providing rewarding career opportunities.

And through our cutting-edge research, we lead the profession by answering today’s questions and preparing for the future. We’re a not-for-profit organisation. Find out more at accaglobal.com

About IFAC 

IFAC (the International Federation of Accountants) is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies.  

Comprised of over 175 members and associates in more than 130 countries and jurisdictions, IFAC represents more than 3 million accountants in public practice, education, government service, industry, and commerce. Over four decades, IFAC has represented the global profession and supported the development, adoption, and implementation of international standards that underpin the contributions of today’s global accountancy profession.  

IFAC has maintained a long-term approach to building and strengthening a global accountancy profession that supports transparent, accountable, and sustainable organizations, financial markets, and economies. More information is here www.ifac.org 

As the world becomes more complex, maintaining ethical standards becomes both more challenging and increasingly important. To help guide financial professionals, the Chartered Professional Accountants of Canada (CPA Canada), the Institute of Chartered Accountants of Scotland (ICAS), and the International Federation of Accountants (IFAC) have released Complexity and the professional accountant: Practical guidance for ethical decision-making, the first in a series of four thought leadership pieces.

“We’re on a journey to reimagine the future of the accounting profession,” said Charles-Antoine St-Jean, president and CEO, CPA Canada. “Digital disruption and shifting societal expectations are redefining the role of professional accountants around the world. Our collective response to these opportunities, challenges, and ethical implications will impact our ability to remain trusted leaders, on the forefront of change. This paper, and those to follow, contribute to important conversations as we adapt and help shape the future.”

This initial publication developed by CPA Canada builds on a collaborative exploratory paper and global roundtable event, called Ethical Leadership in an Era of Complexity and Digital Change, held in conjunction with ICAS and IFAC. The first of the series addresses key themes presented in the exploratory work, leveraging the event discussions and recommendations, to offer practical guidance for professional accountants, accounting organizations, educators and employers.

“Ethical leadership is crucial to the future success of the accountancy profession, and the global financial system as a whole,” said Kevin Dancey, CEO of IFAC. “As a profession, it is our core ethical foundation, coupled with our skills and competencies, that enable us to navigate the opportunities and challenges of the digital age, while maintaining our public interest responsibility.”

The development of Complexity and the professional accountant: Practical guidance for ethical decision-making was also informed by the ongoing work of the Technology Working Group of the International Ethics Standards Board for Accountants (IESBA) and the diverse views of stakeholders gathered through its extensive outreach.

“The accounting profession needs to continually evolve to address changing stakeholder needs while continuing to meet its’ public interest responsibility” notes, Bruce Cartwright CA, ICAS CEO, adding: “The only certainty is that there will be more regular advancements in technology. It is therefore imperative that we properly consider the associated ethical implications of technology and help shape the future.”

Complexity and the professional accountant: Practical guidance for ethical decision-making, along with the collaborative exploratory paper, a summary of the February 2021 event, including an on-demand recording and additional resources, are all available on the IFAC Knowledge Gateway.

The upcoming papers in the series will cover the following interconnected but distinct topics:

• Technology is a double-edged sword
• Identifying and mitigating bias and mis-/disinformation
• Mindset and enabling skills

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About CPA Canada
Chartered Professional Accountants of Canada (CPA Canada) works collaboratively with the provincial, territorial and Bermudian CPA bodies, as it represents the Canadian accounting profession, both nationally and internationally. This collaboration allows the Canadian profession to champion best practices that benefit business and society, as well as prepare its members for an ever-evolving operating environment featuring unprecedented change. Representing more than 220,000 members, CPA Canada is one of the largest national accounting bodies worldwide. cpacanada.ca

About ICAS
The Institute of Chartered Accountants of Scotland (ICAS) is the global professional body for Chartered Accountants. We educate, examine and lead, enabling excellence whilst always working for the wider public good. All 23,000 ICAS members have earned our world-class CA designation of Chartered Accountant, the qualification that’s shaped an international business community spanning industries and continents, full of local heroes and corporate leaders. And we continually foster the bonds between our members, so CAs at all stages of their careers can learn from shared experience and connect their ambitions to success. For further information please visit – icas.com.

About IFAC

The International Federation of Accountants (IFAC) is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. Comprised of 180 members and associates in more than 130 countries and jurisdictions, IFAC represents more than 3 million accountants in public practice, education, government service, industry and commerce.

Over four decades, IFAC has represented the global profession and supported the development, adoption, and implementation of international standards that underpin the contributions of today’s global accountancy profession. IFAC has maintained a long-term approach to building and strengthening a global accountancy profession that supports transparent, accountable, and sustainable organizations, financial markets, and economies.

The IAASB in collaboration with IFAC invite you to join the final webinar in our quality management series, Bringing It All Together: Exploring the Components of the Quality Management System, on August 18 from 11 am–12 pm GMT on Zoom with livestreaming on YouTube. The webinar will address aspects of International Standard on Quality Management 1, including governance and leadership, information, communication and networks.

ISQM 1 is part of the IAASB’s suite of quality management standards, issued in late 2020. The standards strengthen and modernize how firms approach quality management. They also mark an evolution from a traditional, more linear approach for quality control to an integrated quality management approach.

The webinar will be held in English and available on YouTube following the session. Participants joining live via Zoom will be able to submit questions.

• Webinar Four: Bringing it All Together: Exploring all the Components of a Quality Management System
  • August 18, 11 am–12 pm GMT
  • Featuring IAASB members Julie Corden and Sachiko Kai and Deputy Director Natalie Klonaridis
  • Register Now

The recordings from the previous webinars in the series are available on YouTube:

• Webinar One: All You Need to Know about the Firm’s Risk Assessment Process
• Webinar Two: Resources: Expectations for Firm and Engagement Partners
• Webinar Three: What’s New in Firm’s Monitoring and Remediation Process

This webinar series is part of the IAASB’s implementation support efforts. Looking for additional resources on the suite of quality management standards? Check out the IAASB’s dedicated web page: iaasb.org/quality-management

IFAC is committed to supporting our member organizations and the development, adoption, and implementation of high-quality international standards.

The IAASB in collaboration with IFAC invite you to join the final webinar in our quality management series, Bringing It All Together: Exploring the Components of the Quality Management System, on August 18 from 11 am–12 pm GMT on Zoom with livestreaming on YouTube. The webinar will address aspects of International Standard on Quality Management 1, including governance and leadership, information, communication, and networks.

ISQM 1 is part of the IAASB’s suite of quality management standards, issued in late 2020. The standards strengthen and modernize how firms approach quality management. They also mark an evolution from a traditional, more linear approach for quality control to an integrated quality management approach.

The webinar will be held in English and available on YouTube following the session. Participants joining live via Zoom will be able to submit questions.

• Webinar Four: Bringing it All Together: Exploring all the Components of a Quality Management System
  • August 18, 11 am–12 pm GMT
  • Featuring IAASB members Julie Corden and Sachiko Kai and Deputy Director Natalie Klonaridis
  • Register Now

The recordings from the previous webinars in the series are available on YouTube:

• Webinar One: All You Need to Know about the Firm’s Risk Assessment Process
• Webinar Two: Resources: Expectations for Firm and Engagement Partners
• Webinar Three: What’s New in Firm’s Monitoring and Remediation Process

This webinar series is part of the IAASB’s implementation support efforts. Looking for additional resources on the suite of quality management standards? Check out the IAASB’s dedicated web page: iaasb.org/quality-management

In its Strategy and Work Plan 2019-2023 (the Strategy) the International Public Sector Accounting Standards Board® (IPSASB®) committed to hold a public consultation mid-way through the Strategy period on projects that should be added to the Work Program during the remainder of the period, as existing projects were completed. Accordingly, the IPSASB has today released its Mid-Period Work Program Consultation (Consultation).

Within the context of continuing to deliver the Strategy, the Consultation prioritizes projects to be added to the Work Program as the Board and staff resources become available during 2022 and 2023. In view of the resources likely to become available, the Consultation proposes adding two major projects:

• Presentation of Financial Statements; and 
• Differential Reporting.

The Consultation also proposes to add up to four smaller scope projects:

• IPSAS 21, Impairment of Non-Cash-Generating Assets; 
• IPSAS 31, Intangible Assets; 
• IPSAS 33, First-Time Adoption of Accrual Basis IPSASs; and 
• Making Materiality Judgements.

“Despite the major challenges of the pandemic, the Biennial Review that we have published today shows that the IPSASB has continued to deliver on its current Strategy, which itself remains relevant. As we complete our current projects the Board is proposing to add a number of new ones based on its views on the current priorities,” said IPSASB Chair Ian Carruthers. “It is essential the IPSASB hears its stakeholders’ views on the proposed projects so that it can best address their needs and priorities as IPSAS usage continues to increase globally.”

How to Comment

To access the Exposure Draft, its summary At-a-Glance document, and the Request for Information or to submit a comment, visit the IPSASB website, www.ipsasb.org. Comments are requested by November 30, 2021. The IPSASB encourages IFAC members, associates, and Network Partners to promote the availability of this Consultation Paper to their members and employees.

About the IPSASB

The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

About the Public Interest Committee

The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.