The UK Financial Reporting Council (FRC) issued amendments to Financial Reporting Standard (FRS) 101, Reduced Disclosure Framework – International tax reform – Pillar Two model rules and FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland, a news release said.
For FRS 101, the amendments provide an exemption from some disclosure requirements in IAS 12 Income Taxes, provided that equivalent disclosures are included in the consolidated financial statements of the group in which the entity is consolidated.
“The amendments to FRS 102 introduce a temporary exception to the accounting for deferred taxes arising from the implementation of the Organisation for Economic Co-operation and Development’s (OECD) Pillar Two model rules, alongside targeted disclosure requirements … effective for accounting periods beginning on or after 1 January 2023, with early application permitted,” the release said.
In another release, the regulator announced the publication of the third version of Technical Actuarial Standard 400, Funeral Plans, which comes into effect Monday. “The revised standard includes revision to existing provisions in relation to risk identification and valuations carried out under the UK’s new Financial Conduct Authority (FCA) regime,” the release said, “as well as new provisions in relation to new responsibilities such as approvals and transfers.”
IFAC submits feedback on ESRS standards
The International Federation of Accountants (IFAC) has submitted feedback in response to the European Commission’s European Sustainability Reporting Standards (ESRS). In its response, IFAC welcomes the standards while noting significant concerns regarding the need for interoperability that supports a global system for reporting, a news release said.
“In addition to the ESRS, IFAC has also welcomed the International Sustainability Standards Board’s new standards and other important jurisdiction or regional initiatives, notably the [US Securities and Exchange Commission’s] proposed climate disclosure rule,” the release said. “However, these approaches must align key concepts, terminologies, and metrics to avoid regulatory fragmentation, especially on matters of materiality.”
Ethics guidance for auditors: Technology and independence
New guidance from the International Ethics Standards Board for Accountants (IESBA) aims to assist auditors with applying technology-related provisions involving independence in the International Code of Ethics for Professional Accountants.
The non-authoritative publication, Applying the Code’s Conceptual Framework to Independence: Practical Guidance for Auditors In Technology-related Scenarios, was developed jointly with the Australian Accounting Professional & Ethical Standards Board. It features three practical examples involving technology-related non-assurance services.
“Over the past three years, the Board has dedicated strategic focus and significant resources to addressing the ethics and independence implications of technological innovation such as AI, blockchain, and data analytics,” IESBA chair Gabriela Figueiredo Dias said in a news release.
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