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Technical new in brief November 2021

ICAEW's Audit and Assurance Faculty brings you the latest technical updates on developments in auditing and assurance, financial reporting and ethics.

Mainstreaming sustainability

Financial Reporting | 29 November 2021
The International Federation of Accountants’ (IFAC) Professional Accountants in Business (PAIB) Advisory Group has published a report looking at The Role of Accountants in Mainstreaming Sustainability.

Supplier finance arrangements disclosure requirements

Financial Reporting | 26 November 2021
The International Accounting Standards Board (IASB) has published proposed changes in disclosure requirements to enhance the transparency of supplier finance arrangements and their effects on a company’s liabilities and cash flows. The deadline for comments is 28 March 2022.

UK Corporate Governance Code reporting

Financial Reporting | 25 November 2021
The Financial Reporting Council (FRC) has published its Annual Review of Corporate Governance which found that there was an improvement in reporting against the UK Corporate Governance Code but that there is still room for improvement in areas such as substantive disclosures on Board appointments, succession planning and diversity.

Narrow-scope amendments to IAS 1

Financial Reporting | 19 November 2021
The International Accounting Standards Board (IASB) has proposed amendments to IAS 1 Presentation of Financial Statements to improve the information companies provide about long-term debt with covenants. The deadline for comments is 21 March 2022.

IFAC sustainability publication

Financial Reporting | 18 November 2021
The International Federation of Accountants (IFAC) has released a publication entitled Sustainability Information for Small Businesses: The Opportunity for Practitioners which explores the benefits of embracing sustainability information.

Latest edition of Developments in Audit

Audit and Assurance| 18 November 2021
The Financial Reporting Council (FRC) has published its latest edition of Developments in Audit, setting out their annual assessment of UK audit and ongoing expectations for delivering audit quality improvements.

Joint FRC and FCA letter on structured reporting

Financial Reporting | 16 November 2021
The Financial Reporting Council (FRC) and the Financial Conduct Authority (FCA) have written a joint letter to Chief Executive Officers of issuers in scope of the new requirements to remind them of their obligations.

What makes a good audit?

Audit and Assurance | 16 November 2021
The Financial Reporting Council (FRC) has published a report setting out the key elements required by audit firms to ensure they are delivering high quality audit. The report includes a range of examples of good practice identified from recent FRC inspections. A podcast on the report with the FRC’s CEO is also available.

Less complex entity consultation survey

Audit and Assurance| 15 November 2021
The International Auditing and Assurance Standards Board (IAASB) and the International Federation of Accountants (IFAC) have developed a survey to offer an alternative way to participate in the public consultation on the proposed new standard for audits of less complex entities (LCEs). The survey is open until 14 January 2022.

European Commission consultation on corporate reporting

Financial Reporting | 15 November 2021
The European Commission (EC) has launched a review on improving the quality and enforcement of corporate reporting, focusing on improving the framework for corporate governance, external audit and supervision. The deadline for comments is 4 February 2022.

Climate-related matters and FRS 102

Financial Reporting | 12 November 2021

The Financial Reporting Council (FRC) has published a factsheet to inform preparers of annual reports under FRS 102, of climate-related matters they may need to consider when preparing financial statements and associated narrative reporting.

Webcasts on proposed IFRS Standard for subsidiaries without public accountability

Financial Reporting | 10 November 2021

The International Financial Reporting Standards (IFRS) Foundation has released three webcasts explaining the proposals set out in the Exposure Draft, Subsidiaries without Public Accountability: Disclosures. The webcasts explore the objectives and scope of the project, proposed disclosure requirements and structure and application of the draft Standard. The deadline for comments is 31 January 2022.

New digital platform for International Standards

Audit and Assurance | 4 November 2021

The International Federation of Accountants (IFAC) has released a new online resource called eIS (e-International Standards) that provides direct access to the standards developed by the International Audit and Assurance Standards Board (IAASB), the International Ethics Standards Board for Accountants (IESBA) and the International Public Sector Accounting Standards Boards (IPSASB).

Guidance on capitalisation of borrowing costs

Financial Reporting | 3 November 2021

The International Public Sector Accounting Standards Board (IPSASB) has issued non-authoritative guidance to IPSAS 5 – Borrowing Costs, including implementation guidance and illustrative examples.

Sustainability disclosure developments

Financial Reporting | 3 November 2021

The International Financial Reporting Standards (IFRS) Foundation Trustees have announced three developments to provide global markets with high-quality disclosures on climate and other sustainability issues. These include the formation of a new International Sustainability Standards Board (ISSB), a commitment by leading investor-focused sustainability disclosure organisations to consolidate into the new board (the Climate Disclosure Standards Board and the Value Reporting Foundation) and the publication of prototype climate and general disclosure requirements developed by the Technical Readiness Working Group (TRWG).