As part of the EU’s Artificial Intelligence (AI) Action Plan, the European Commission opened two public consultations to acquire feedback on upcoming initiatives.
One consultation will focus on the Commission’s proposal of a Cloud and AI Development Act to “stimulate private sector investment in cloud capacity and data centres”, a news release said. The Commission seeks input to shape the future of EU policymaking at the intersection of cloud computing and AI.
The Commission’s Apply AI Strategy consultation aims to identify priorities and current challenges to the uptake of AI in specific sectors, including questions on the challenges in the AI Act implementation process.
“The AI Continent Action Plan will boost the European Union’s AI innovation capabilities,” the release said. The Commission’s actions and policies will be shaped around five key pillars, including simplifying regulation with the launch of an AI service desk to help businesses comply with the requirements of the AI Act.
The deadline for comment is 4 June for both consultations.
IAASB revises going concern standard
The International Auditing and Assurance Standards Board (IAASB) released its revised International Standard on Auditing 570, Going Concern. The revisions respond to corporate failures that have raised questions regarding an auditor’s responsibilities, a news release said.
To address those failures, the revised standard significantly enhances the auditor’s work in evaluating management’s assessment of an entity’s ability to continue as a going concern, the release said. It also aims to increase consistency in auditing practices and strengthen transparency through communications and auditor reporting.
According to the release, key changes include:
- Robust risk assessment: Auditors must conduct, in a more timely manner, thorough risk assessments to determine whether events or conditions are identified that may cast significant doubt on the entity’s ability to continue as a going concern.
- Evaluating management’s assessment: Auditors must evaluate management’s assessment of going concern irrespective of whether events or conditions are identified. In doing so, auditors must consider the potential for management bias and evaluate the underlying method, significant assumptions, and data used when management formed its assessment. Additionally, auditors must evaluate whether management’s judgements and decisions indicate potential bias.
- Extended date of evaluation period: The auditor’s evaluation period for going concern now extends at least 12 months from the date of approval of the financial statements, contributing to an assessment of more relevant and decision-useful information.
- Enhanced transparency: The standard requires clearer communication in the auditor’s report about the auditor’s responsibilities and work related to going concern. The revised standard also requires strengthened communications with those charged with governance and external parties.
The revisions are effective for audits of financial statements for periods beginning on or after 15 December 2026.
FRC publishes TAS guidance
The UK Financial Reporting Council (FRC) published key observations from the pilot phase of its actuarial monitoring programme, a news release said. The publication identifies areas of good practice and where improvements can be made when applying Technical Actuarial Standards (TASs).
According to the document, the regulator observed examples of good practice where the evidence provided by the practitioner “demonstrated their consideration of the rationale behind the TAS provisions and explained how they had met the provisions”.
However, within an insurance and pensions context, the FRC noted that some practitioners failed to evidence how they gained comfort that the inputs were appropriate for use in their work, the publication said.
IFRS collaboration aims to strengthen global sustainability baseline
A collaboration between the IFRS Foundation and the Taskforce on Nature-related Financial Disclosures (TNFD) intends to make progress in sustainability reporting by enabling nature-related financial disclosures for use by capital markets.
The IFRS Foundation and the TNFD signed a memorandum of understanding, signalling both parties’ commitment to build upon TNFD recommendations in the work of the International Sustainability Standards Board (ISSB), a news release said.
Under the memorandum, the ISSB and the TNFD will share research, knowledge, and technical expertise to inform both the ISSB’s Biodiversity, Ecosystems and Ecosystem Services (BEES) research, which began in 2024, and nature-related aspects of its Sustainability Accounting Standards Board (SASB) standards enhancement work.
Also, the ISSB and the TNFD will further explore joint market engagement and capacity-building initiatives, including with other key partner organisations, the release said.
In another release, the IFRS Foundation shared its 2024 annual report. The report discloses achievements made last year and sets out key priorities for 2025.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.