IASB simplifies Financial Reporting for Eligible Subsidiary Companies The International Accounting Standard Board (IASB) has issued a new IFRS Accounting Standard for subsidiaries. IFRS 19 Subsidiaries without Public Accountability: Disclosures permits eligible subsidiaries to use IFRS Accounting Standards with reduced disclosures. Applying IFRS 19 will reduce the cost of preparing subsidiaries’ financial statements while maintaining the usefulness of the information for users of their financial statements. Subsidiaries are eligible to apply IFRS 19 if they do not have public accountability and their parent company applies IFRS Accounting Standards in their consolidated financial statements. A subsidiary does not have public accountability if [...]

IESBA Interactive Webinars on the Global Ethics Standards on Tax Planning The IESBA held two interactive global webinars to present the recently released first global ethics standards on tax planning, available on: https://www.ethicsboard.org/publications/final-pronouncement-revisions-code-addressing-tax-planning-and-related-services?utm_source=Main+List+New&utm_campaign=529b95630f-EMAIL_CAMPAIGN_2024_04_25_10_46&utm_medium=email&utm_term=0_-529b95630f-%5BLIST_EMAIL_ID%5D The standards establish a comprehensive ethical framework to guide professional accountants when providing tax planning and related services. The framework stipulates the expected mind-set and behaviours of professional accountants when they recommend, or otherwise advise on tax planning arrangements for employing organisations or clients. The webinars, held in English, both featured a high-level overview of the standards and a Q & A session. They presentation slides [...]

In the latest issue of IRBA News, Issue 65, seven finalised disciplinary matters and 16 finalised investigation matters were reported. In four disciplinary matters, appropriate levels of professional scepticism weren’t applied, with respect to client continuance decisions, indicating failures relating to the firm’s risk management and quality procedures. Two matters related to sufficient appropriate audit evidence not having been obtained for material balances and related disclosures. One matter related to non-disclosure of a loan with VBS, which was not on ordinary lending terms and conditions, thereby compromising KPMG’s independence and bringing the profession into disrepute. In several investigation matters, [...]

IESBA Launches First Global Ethics Standards on Tax Planning The new standards will strengthen the ethical framework that guides professional accountants providing tax planning services, while other providers are strongly encouraged to follow the standards. The International Ethics Standards Board for Accountants (IESBA) announced the launch of the first comprehensive suite of global standards on ethical considerations in tax planning and related services, incorporated in the IESBA Code of Ethics. Following certification by the Public Interest Oversight Board, the standards establish a framework of expected behaviour and ethics provisions for use by all professional accountants, and respond to public [...]

New IFRS Accounting Standard will aid Investor Analysis of Companies’ Financial Performance The new standard, IFRS 18 Presentation and Disclosure in Financial Statements, developed by the International Accounting Standards Board, will give investors more insightful information about companies’ financial performance. It will affect all companies using IFRS Accounting Standards. IFRS 18 introduces three sets of requirements to improve companies’ reporting of financial performance and aid investor analysis and comparison: • Improved comparability in the statement of profit or loss (income statement) • Enhanced transparency of management-defined performance measures • More useful grouping of information in the financial statements. IFRS [...]

IESBA and IAASB Announce New Strategy and Work Plan The International Ethics Standards Board for Accountants (IESBA) announced the publication of its Strategy and Work Plan for 2024-2027 (SWP), titled Towards a More Sustainable Future: Advancing the Centrality of Ethics, which is available on: https://www.ethicsboard.org/publications/towards-more-sustainable-future-advancing-centrality-ethics?utm_source=Main%20List%20New&utm_campaign=02a8146024-EMAIL_CAMPAIGN_2024_04_11_11_55&utm_medium=email&utm_term=0_-02a8146024-%5BLIST_EMAIL_ID%5D The SWP sets out the IESBA's vision and strategic goals and actions, underpinning its ambition to place the International Code of Ethics for Professional Accountants (including International Independence Standards) at the core of every business and organisation. In developing its SWP, the IESBA engaged closely with the International Auditing and Assurance Standards Board (IAASB), [...]

CAQ Publication: Auditing in the Age of Generative AI Collective interest in and awareness of generative AI (genAI) has grown exponentially since the public release of several genAI chatbots powered by large language models. While artificial intelligence and machine learning are not new, the accessibility and ease of use provided by genAI chatbots and similar large language models have led to increased use by individuals and companies. The Centre for Audit Quality (CAQ), a non-partisan public policy organisation serving as the voice of US public company auditors and matters related to the audits of public companies, issued a publication [...]

New IAASB Video Series Explores Proposed Changes to Fraud Standard As the International Auditing and Assurance Standards Board reaches the midpoint of its public consultation on proposed amendments to its fraud standard, a new four-part video series has been released. The series will help stakeholders understand the proposed changes that strengthen auditors’ responsibilities related to fraud, and the rationale behind them. Explore the Understanding Proposed Changes to the Fraud Auditing Standard Video Series, available on YouTube on: https://www.youtube.com/watch?app=desktop&utm_source=Main+List+New&utm_campaign=7f80d354f7-IAASB-news-alert-4.4.24&utm_medium=email&utm_term=0_-7f80d354f7-%5BLIST_EMAIL_ID%5D&v=Q6w3hMiY2Gc&feature=youtu.be The video includes the following: • Overview of Key Changes • Spotlight on Auditor’s Responsibilities • Auditor’s Response to Fraud or [...]

IFRS and Trade Mark Guidelines Towards the end of last year, the IFRS Foundation revised its Trade Mark Guidelines, available on: https://www.ifrs.org/content/dam/ifrs/about-us/legal-and-governance/legal-docs/trade-mark-guidelines.pdf These guidelines impact any references to the IFRS Foundation, the International Accounting Standards Board (IASB), the International Sustainability Standards Board and the work of these bodies. These updated guidelines require that, among others, the standards issued by the IASB – including the International Accounting Standards and the International Financial Reporting Standards (IFRS) – be referred to as ‘IFRS Accounting Standards’. Furthermore, International Accounting Standards should no longer be referred to as ‘IASs’, but ‘IAS Standards’. In December [...]

IFIAR releases 2023 Report on Annual Survey of Audit Inspection Findings In March 2024, IFIAR released its twelfth annual survey of inspection findings arising from its member regulators’ individual inspections of audit firms affiliated with the six largest global audit firm networks. This report on IFIAR’s 2023 Survey of Inspection Findings provides an overview of its annual survey findings and highlights results of its 2023 survey. IFIAR collected information about inspection activities relating to firm-wide systems of quality control, and individual audit engagements. For insight into the effectiveness of audit firms’ systems of quality control in supporting audit quality, [...]