Americas

Impact of tariffs and shifting to AI assurance

The continuing shifts in US trade policy, including tariffs and ongoing legal challenges, are creating uncertainty for businesses across North America. For finance teams, this is no longer just a supply chain issue, it has significant accounting implications.

This matters globally because companies with international operations are facing similar challenges as governments increasingly use trade policy as an economic tool. Finance professionals need to help management quantify these impacts and ensure transparent reporting.

Another key issue in North America is the way in which AI governance has become a finance and audit priority. Regulators, boards and standard setters are increasingly focused on how organisations use AI in financial reporting and decision-making. The discussion has shifted from “Should we use AI?" to "How do we govern it responsibly?".

Given the significance of these topics, and the global influence of the US economy, ICAEW continues to engage with key regulatory and policy stakeholders in Washington and New York.  Our CEO and other senior staff host regular meetings with stakeholders, such as the Securities and Exchange Commission, Public Company Accounting Oversight Board and Center for Audit Quality.

Reflecting the important impact decisions and trends emerging from the region has on members globally, ICAEW has appointed a member of staff in the US. They will be supporting our work and providing useful insights.

• More support for members in the US
• More support for members in Canada
• More support for members in Latin America
• More support for members in the Caribbean and Bermuda

Europe

CSRD delays and 28th Regime on the horizon

In February 2025, the publication of the Omnibus Package saw the further rollout of the Corporate Sustainability Reporting Directive (CSRD) postponed. This has  ICAEW members operating in Europe waiting for the final position on the updated reporting and assurance framework, as well as the context within  international sustainability standard setting.

While large public interest entities must continue to report as required under CSRD, other organisations have been given a further two years to prepare. In-scope large EU companies are now expected to report in 2028 on their 2027 full year financial information, while listed SMEs won’t need to report until 2029.

Meanwhile, as investments in AI grow across Europe accountancy practices and businesses are focusing on the impacts it will have workforce planning, as well as the skills that are required for business. Similar to their peers in North America, many members are focused on understanding developments in AI assurance.

Fragmentation in Europe provides one of the biggest barriers to the operation of the EU single market – and the four founding principles of free freedom of movement, people, capital and trade.

In a bid to address these issues in March the Savings and Investments Union published its proposal for a 28th Regime – a legal framework that offers a harmonised alternative to 27 national procedures.

The aim of the legislation is to turbocharge the single market with supra-national infrastructures. The proposals are being considered over the summer, with committee and parliamentary votes expected in the Autumn. If the legislation is agreed this year, it could be operational from as early as 2027.

• More support

Oceania

AI adoption and mandatory climate reporting

Across Oceania, organisations are rapidly adopting AI, automation, and advanced analytics to improve finance operations. Governments and professional bodies are also developing guidance on responsible AI use, cyber security, and data governance.

Examples include guidance on the careful adoption of agentic AI services which was published in May. The Australian government agency worked with bodies from New Zealand, Canada, the UK and the US, to create the guide. It advises that agentic AI developers, vendors and operators should implement “a layered defence and strict access controls” to reduce the possibility of systems being compromised. 

Alongside AI, sustainability reporting is increasingly important for practitioners in Oceania. Australia has begun implementing mandatory climate-related financial disclosures for large entities, aligning closely with the International Sustainability Standards Board standards (IFRS S1 and IFRS S2). The commencement date for the largest companies was for annual reporting periods from 1 January 2025, with the second largest companies required to report for periods starting on 1 July 2026.

New Zealand, meanwhile, continues to build on its position as one of the first countries to require climate-related disclosures for major financial institutions and listed entities.

• More support