COP28 concluded with almost 200 countries agreeing to move away from fossil fuels to reach net zero, a consensus labelled a “historic achievement” by the president of the climate summit.
The UN climate summit, held in Dubai, ended Wednesday with representatives of 198 countries agreeing to The UAE Consensus. In addition to the fossil fuels agreement, the consensus includes a new specific target to triple renewables and double energy efficiency by 2030.
“The world needed to find a new way. By following our North Star, we have found that path,” said Sultan Al Jaber, COP28 president. “We have worked very hard to secure a better future for our people and our planet. We should be proud of our historic achievement.”
IFAC revision brings focus to sustainability
The International Federation of Accountants (IFAC) plans to revise the International Education Standards (IES) “to bring greater focus to sustainability reporting and assurance competence”, a news release said, to recognise the evolving role of professional accountants in this important area.
“Extensive stakeholder outreach and research [has] made it clear that while professional accountants’ skills and training are transferable to sustainability reporting and assurance, there’s a need for a focus on sustainability in the IES,” the release continued. The planned revisions aim to address this, according to the release, including revised and new learning outcomes for professional development programs to best prepare future and current professional accountants.
IFAC anticipates launching a public consultation on proposed revisions to the standards in March 2024. “It is imperative that we all commit to personal professional development,” IFAC CEO Kevin Dancey said in the release, “ensuring that we are ready to meet the moment with the competence and due care that define our profession.”
UKEB adopts IAS 7 and IFRS 7 amendments
Amendments to IAS 7, Statement of Cash Flows and IFRS 7, Financial Instruments: Disclosures, originally published in May, were approved for adoption by all members of the UK Endorsement Board (UKEB) on 28 November.
The amendments are effective for annual reporting periods beginning on or after 1 January, with early application permitted, the UKEB said.
UK, Switzerland approve mutual recognition agreement
The UK and Switzerland have arranged for mutual recognition of statutory audit qualifications, allowing auditors to work more easily in each country, the UK Financial Reporting Council (FRC) said, boosting both countries’ audit markets.
The arrangements, made by the FRC and the Federal Audit Oversight Authority (FAOA), will allow auditors who have obtained professional audit qualifications and registration as a statutory auditor in either the UK or Switzerland to apply for recognition of their qualification, and audit rights in the other country, a news release said.
The agreement will come into force in 2025.
IAASB issues guidance related to trademarks
The International Auditing and Assurance Standards Board (IAASB) has issued guidance to help stakeholders understand how to reference IFRS Accounting Standards following recent updates to the IFRS Foundation’s Trademark Guidelines, a news release said.
The IAASB clarified how auditors or practitioners should refer to the standards in their reports, the release said.
IFAC, CPA Canada report explores whistleblowing
A joint report by IFAC and CPA Canada focuses on current issues in the adoption and implementation of whistleblower protection legislation. Research in the report explores policy considerations to help ensure that local frameworks are fit for purpose, a news release said. The report builds off the International Bar Association and Government Accountability Project report published in 2021.
“Whistleblowers are widely recognised for the pivotal role they play in exposing financial wrongdoing, economic crimes, fraud, and corruption,” IFAC CEO Kevin Dancey said in the release. “Robust protection laws are needed to safeguard and support their contributions and promote trust and integrity in the public and private sector.”
IOSCO report addresses greenwashing risks
The board of the International Organization of Securities Commissions (IOSCO) published a report, Supervisory Practices to Address Greenwashing, focused on the challenges hindering the implementation of the IOSCO recommendations published in November 2021.
The report notes that while the ESG ratings and data products market remains largely unregulated, some jurisdictions are currently developing policy frameworks for ESG ratings and data products providers, according to a news release. It also refers to enforcement measures that have been taken on a few greenwashing cases.
FRC issues draft amendments to FRS 101, revises pension standard
Following an annual review of FRS 101, the FRC has proposed minor amendments for consistency with IAS 1, Presentation of Financial Statements, according to a news release. Comments on the draft amendments are requested by 4 March and can be emailed to ukfrs@frc.org.uk.
The regulator also announced revisions to technical actuarial standards for the pensions sector to ensure it remains appropriate and reflects developments in the pension industry.
“The revised standard [version 2.0 of Technical Actuarial Standard 300: Pensions] includes requirements for the provision of advice on setting actuarial factors and on bulk transfer exercises, including buyout transactions with insurers, and transfers to pension superfunds,” the release said.
In another release, the FRC sets out its areas of focus for 2024 and 2025, including priority sectors, priority areas in corporate reporting reviews, and audit quality inspections. In corporate reporting reviews and audit quality inspections, the FRC will pay particular attention to the following areas:
- Risks related to the current economic environment (for example: going concern, impairment, recoverability, and recognition of tax assets/liabilities);
- Climate related risks, including Task Force on Climate-Related Financial Disclosures (TCFD);
- Implementation of IFRS 17, Insurance Contracts, and;
- Cash flow statements.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.