To be future-ready, accountants must develop the right competencies to meet this need, a news release from the International Federation of Accountants (IFAC) said. In response to growing demands of corporate reporting, IFAC has proposed changes to the International Education Standards (IESs).
The proposals look to “embed sustainability — from analysis to reporting to assurance — across aspiring professional accountants’ training”, the release said. They also aim to provide a robust framework for the profession to develop capable accountants who produce, report, and assure sustainability information, which includes:
- Emphasising working with experts and in multi-disciplinary teams;
- Introducing key sustainability reporting concepts, such as systems thinking, value chains, and scenario analysis;
- Referencing relevant sustainability reporting and assurance standards; and
- Creating a new assurance competence area and learning outcomes.
Additionally, IFAC proposed changes to IES 6, Initial Professional Development — Assessment of Professional Competence, “to modernise the standard to align with current good practice and clarify previously existing requirements”, the release said, to introduce new principles that emphasise integrity, authenticity, equity, and inclusion.
IFAC seeks stakeholder feedback on the proposed amendments by 24 July. Comments can be submitted online for IES 2, 3, and 4 and for IES 6.
IASB commences review project of accounting for intangibles
The IASB will begin its comprehensive review of accounting requirements for intangibles, a news release said. The review aims to help inform the board on whether the requirements of IAS 38, Intangible Assets, should be updated to reflect recent developments in corporate reporting.
The board will assess whether the requirements of IAS 38 “remain relevant and continue to fairly reflect current business models or whether the IASB should improve the requirements”, the release said.
According to the release, the initial research and planning phase aims to define the scope of issues to be explored and determine the best approach to plan and organise the work. Over the next few months, the IASB will consult with its advisory bodies and other stakeholders to help inform the project plan.
ISSB begins work on biodiversity research project
The International Sustainability Standards Board (ISSB) is preparing to launch a research project into risks and opportunities related to biodiversity; ecosystems and ecosystem services; and human capital, a news release said.
The project will focus on the regular information needs of investors in assessing whether and how these risks and opportunities could reasonably be expected to affect a company’s prospects, the release said.
It will assess how it might build from pre-existing initiatives, including those from the Sustainability Accounting Standards Board (SASB) standards, guidance from the Climate Disclosure Standards Board, and relevant aspects of the work of the Task Force on Nature-Related Financial Disclosures (TNFD).
The board expects to publish a summary of the feedback on its agenda consultation in June, together with its response to the feedback and its work plan for the next two years.
Reminder: Get ready for IFRS 17
The UK Government Actuary Department released a reminder for public sector organisations in the UK to ensure their “accounts will be IFRS 17 compliant” from this financial year onwards, a news release said.
“It is time for public sector organisations to ensure their accounts will be IFRS 17 compliant when accounting for insurance contracts,” the release said. “The transition date for IFRS 17 was 1 April 2024. This is the date from which organisations will need to keep in mind that accounts for this financial year will be considered as part of the overall IFRS 17 approach.”
IFRS 17, Insurance Contracts, will be applied by HM Treasury from 1 April 2025, the release said. The underlying aim of IFRS 17 is to make reporting of risk transfer contracts more comparable between different entities.
FCA releases guidance ahead of anti-greenwashing rule
Ahead of the UK Financial Conduct Authority’s (FCA’s) anti-greenwashing rule, which will come into force on 31 May, the regulator released guidance for companies to help them meet the rule’s requirements.
“This work supports the long-term growth and competitiveness of the sector by helping businesses meet this demand and ensuring consumers who invest in sustainability-related financial products can make informed decisions,” a news release said.
The FCA is also consulting on extending to portfolio managers the requirements on how sustainable investments are labelled and explained, making consumer choice easier, the release said.
UK government rolls out SME-focused resources
As part of its Help to Grow initiative, the UK government launched a free business management course for small and medium-size entities (SMEs), a press release said. The online course is an introductory version of the full Help to Grow: Management Essentials course. It is meant to reach even more small businesses.
“Small businesses are a vital part of local economies across the UK, and supporting them is crucial to delivering on the prime minister’s priority to grow the economy,” the release said. “This course will support SME leaders to establish their roots as they look ahead to scale up and grow their business.”
Visit the Help to Grow site for more information.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.