The IASB published the Addendum to the Exposure Draft third edition of the IFRS for SMEs Accounting Standard, which supplements the ED published in September 2022, a news release said. The board has opened a consultation for feedback on the proposed amendments.
In response to feedback from users of SMEs’ financial statements and the SME Implementation Group, the IASB is moving to update IFRS for SMEs and reflect improvements made to the full IFRS Accounting Standards.
“The proposals balance the needs of users of SMEs’ financial statements, while maintaining the IASB’s commitment to only update the standard periodically,” the release said. “Both groups said the amendments made to full IFRS accounting standards relating to lack of exchangeability between two currencies and disclosure requirements for supplier finance arrangements are relevant to SMEs and should be included in the third edition of the standard.”
The ED is open for public comment until 31 July. Comments can be submitted online.
IFAC publishes IPSAS Implementation guidance
To assist governments and government entities with the accrual-based International Public Sector Accounting Standards (IPSAS), IFAC released a package of training materials.
The materials, collectively titled Implementing IPSAS: A Guide for Trainers, are designed to help trainers teach others about the public sector accounting standards and how to apply them.
The 2024 edition of the guidance includes updates to incorporate standards and pronouncements recently issued, a news release said, including IPSAS 46, Measurement; IPSAS 47, Revenue; IPSAS 48, Transfer Expenses; and IPSAS 43, Leases.
UK, Australia sign agreement to enhance audit market
The UK’s Financial Reporting Council (FRC) and the Australian Securities and Investment Commission (ASIC) announced a memorandum of understanding on reciprocal arrangements, a news release said, making it easier for auditors to work between both countries.
Auditors who have obtained professional audit qualifications as a statutory auditor in either the UK or Australia will now have a clearer path to apply for recognition of their qualification and audit rights in the other nation.
“The accounting activities sector, which includes audit services, is a significant part of the UK economy, generating £44 billion in 2023,” the release said. “The sector supported over half a million jobs and accounted for nearly £4 billion of exports in 2022.”
The agreement is expected to improve the quality of the UK audit market by increasing the number of skilled statutory auditors able to practise in the UK over time and make it easier for UK audit firms to export their services to Australia, the release said.
IFRS publishes 2024 taxonomy
The IFRS Foundation published its accounting taxonomy for 2024. The IFRS Accounting Taxonomy 2024 includes changes to last year’s taxonomy to reflect new or amended presentation and disclosure requirements.
According to a news release, it includes amendments arising from:
- International Tax Reform—Pillar Two Model Rules (Amendments to IAS 12), issued in May 2023.
- International Tax Reform—Pillar Two Model Rules (Amendments to Section 29 of the IFRS for SMEs Accounting Standard), issued in September 2023.
- Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7), issued in May 2023.
- Lack of Exchangeability (Amendments to IAS 21), issued in August 2023.
“The IFRS Accounting Taxonomy 2024 is based on IFRS Accounting Standards as [of] 1 January 2024, including standards issued but not yet effective,” the release said.
GRI publishes sustainability guidance for policymakers
The Global Reporting Initiative (GRI) published three guides to foster better disclosure and standards-based policymaking.
The GRI seeks to address policymakers’ questions on how mandatory sustainability reporting can help them tackle challenges in their jurisdictions, Peter Paul van de Wijs, chief policy officer at GRI, said in a news release. “Our new publications — the first in a new series — address critical themes related to effective corporate disclosure and signal the importance of policy alignment on a global scale,” van de Wijs said.
The guidance addresses:
- Double materiality: “The interconnectedness of a company’s impacts on society and the environment with its financial performance,” the release said, “GRI reporting prepares companies for double materiality, given impacts are the basis for determining associated financial risks and opportunities.”
- Due diligence: “How a business prevents, mitigates and accounts for its impacts,” the release said. “Due diligence is integrated into the GRI standards, with reporting requirements that are aligned with authoritative intergovernmental instruments.”
- Corporate Sustainability Reporting Directive: “The benefits for policymakers in harmonising their sustainability disclosure regulations with the EU,” the release said. “The GRI standards are closely aligned with the new European Sustainability Reporting Standards (ESRS), with collaboration continuing to ensure they remain so in the future.”
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.