Technical new in brief November 2022
ICAEW's Audit and Assurance Faculty brings you the latest technical updates on developments in auditing and assurance, financial reporting and ethics.
IASB accelerated narrow-scope amendments to Accounting Standard on income taxes
Financial Reporting | 24 November 2022
The International Accounting Standards Board (IASB) has added an accelerated project proposing narrow-scope amendments to IAS 12 Income Taxes, to its work plan. This is in response to the Organization for Economic Co-operation and Development (OECD) publishing its Pillar Two model rules. The IASB expects to release an exposure draft in January 2023 with a comment period of 60 days.
IASB retains impairment-only approach to goodwill accounting
Financial Reporting | 24 November 2022
The International Accounting Standards Board (IASB), following a post-implementation review of IFRS 3 Business Combinations, has voted to retain the impairment-only approach to account for goodwill. They also voted to add disclosure requirements to IFRS 3 and will consider whether to publish these proposals as an exposure draft.
FRC publishes guidance on what makes a good environment for auditor scepticism and challenge
Audit and Assurance | 23 November 2022
The Financial Reporting Council (FRC) has issued a new report setting out examples of good practice to improve auditor scepticism and challenge. The report summarizes what good looks like and provides examples of good practice from the FRC’s ongoing supervision work.
EFRAG SRB issues first set of draft EU sustainability reporting standards
Financial Reporting | 23 November 2022
The European Financial Reporting Advisory Group’s (EFRAG) Sustainability Reporting Board (SRB) has issued the first set of draft EU sustainability reporting standards. The SRB has delivered the draft European Sustainability Reporting Standards (ESRS) as required by the Corporate Sustainability Reporting Directive, despite time and resource constraints.
FRC issue revised Application Guidance to FRS 100
Financial Reporting | 18 November 2022
The Financial Reporting Council (FRC) has issued Amendments to FRS 100 Application of Financial Reporting Requirements – The Interpretation of Equivalence. This revises the Application Guidance to FRS 100 to reflect changes to company law and decisions on equivalence following the UK’s exit from the European Union.
PCAOB Proposes a New Quality Control Standard
Financial Reporting | 18 November 2022
The Public Company Accounting Oversight Board (PCAOB) has issued for public comment a proposed standard that the board believes, if adopted, would significantly improve public accounting firms quality control systems. The deadline for comment is 1 February 2023.
IESBA releases comprehensive research on impacts of technology on ethics
Financial Reporting | 18 November 2022
The International Ethics Standards Board for Accountants (IESBA) released its working group’s final report, IESBA Technology Working Group Phase 2 Report. This documents the impact of disruptive and and transformative technologies on the work of professional accountants and discusses the importance of the overarching principles in the International Code of Ethics.
IFAC report on the need for finance professionals within the public sector
Financial Reporting | 17 November 2022
The International Federation of Accountants (IFAC) has issued a joint report with the Association of Chartered Certified Accountants (ACCA) which aims to boost public financial management (PFM) across the globe. A Global Guide for Professionalization in Public Sector Finance outlines what professionalization means in public sector finance, the benefits of professionalization and offers a high-level roadmap to support global good practice.
IAASB issues guidance on how amendments to IAS 1 impact the ISAs
Audit and Assurance | 16 November 2022
The International Auditing and Accounting Standards Board (IAASB) has published new guidance to help users understand the impact on the International Standards on Auditing (ISAs) due to narrow-scope amendments made to International Accounting Standard (IAS) 1, Presentation of Financial Statements.
FRC sets out principles for public interest test
Financial Reporting | 14 November 2022
The Financial Reporting Council (FRC) has published a set of principles that it will use to assess whether the public interest is best served by carrying out regulatory, supervisory and enforcement work that is outside its primary regulatory perimeter as it transitions to the Audit, Reporting and Governance Authority (ARGA).
FRC publishes Annual Review of Corporate Governance Reporting
Audit and Assurance | 8 November 2022
The Financial Reporting Council (FRC) has launched a consultation on its draft proposal for a minimum standard for audit committees. The purpose of the standard will be to increase performance across audit committees in the FTSE 350, ensuring a consistent approach. The consultation will run until 8 February 2023.
FRC publishes Annual Review of Corporate Governance Reporting
Financial Reporting | 3 November 2022
The Financial Reporting Council (FRC) has published its Annual Review of Corporate Governance Reporting. This found an improvement in the quality of reporting against the UK Corporate Governance Code.
IPSASB Sustainability reporting implementation guidance proposals
Financial Reporting | 3 November 2022
The International Public Sector Accounting Standards Board (IPSASB), developer of accounting standards for use by governments and other public sector entities around the world, has issued a new exposure draft proposing additional guidance on sustainability reporting implementation. Deadline for comments is 16 January 2023.