IESBA issues code revisions to incorporate growing digitisation

The final revisions undertake the possible ethics risks in the evolving landscape of technology; IASB will finalise amendments to income taxes standard.

The International Ethics Standards Board for Accountants (IESBA) has released final revisions to its ethics code to further increase its robustness and expand its relevance in a world being fundamentally reshaped by rapid technological advancements and accelerating digitalisation, according to a news release.

"It is crucial and in the public interest that we provide strong, clear and principles-based standards to equip professional accountants around the world in navigating the ethical risks and challenges brought on by technology," IESBA Chair Gabriela Figueiredo Dias said in the release.

The revisions, informed by extensive fact-finding and stakeholder outreach, include:

  • Strengthen the code in guiding the mindset and behaviour of professional accountants when they use technology.
  • Provide enhanced guidance fit for the digital age in relation to the fundamental principles of confidentiality, and professional competence and due care, as well as in dealing with circumstances of complexity.
  • Strengthen and clarify the International Independence Standards (IIS) by addressing the circumstances in which firms and network firms may or may not provide a technology-related non-assurance service to an audit or assurance client.

The revisions to the IIS will be effective for audits and reviews of financial statements for periods beginning on or after 15 December 2024. The other revisions to the ethics provisions of the code will also be effective as of the same date. Early adoption is permitted.

UK FRC opens consultation

The UK Financial Reporting Council (FRC) has announced a review of the Audit Enforcement Procedure (AEP) and is seeking feedback and comment on the proposed amendments, according to a news release. All stakeholders, including audit firms, investors, regulators, and the public, are encouraged to provide feedback to inform the final changes.

"The FRC would particularly welcome the views of statutory auditors and audit firms and other regulatory bodies, including professional associations," the release said. This consultation addresses amendments that the FRC is proposing to make to the AEP, the Guidance for the Case Examiner, and the Hearings Guidance, the publication said.

The consultation is open until 5 May. Feedback can be emailed to

IASB on track to publish final IAS 12 amendments

The IASB has decided to finalise amendments to IAS 12, Income Taxes, following the Pillar Two model rules published by the Organisation for Economic Co-operation and Development (OECD), according to a news release.

The amendments will introduce:

  • A temporary exception to the accounting for deferred taxes arising from the jurisdictional implementation of the global tax rules; and
  • Targeted disclosure requirements for affected companies to help users of the financial statements better understand a company's exposure to Pillar Two income taxes arising from that legislation, particularly before its effective date.

The amendments will ensure that affected companies apply IAS 12 consistently and that investors are given better information before and after any jurisdictional Pillar Two legislation comes into effect, the release said.

"We are confident that the final amendments will respond to our stakeholders' urgent needs that have arisen from the implementation of the OECD's Pillar Two model rules," IASB Chair Andreas Barckow said in the release.

The final amendments are expected to be issued by the end of May.

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