The European Parliament voted Thursday to postpone the application dates for new EU laws on sustainability reporting requirements, with some companies granted an extra two years to prepare for those requirements.
In addition, the application of the Corporate Sustainability Reporting Directive (CSRD) will be delayed by two years for the second and third waves of companies covered by the legislation, according to a news release.
“Large companies with more than 250 employees will be required to report on their social and environmental measures for the first time in 2028 for the previous financial year,” the release said, “while listed small and medium-sized enterprises will have to provide this information one year later.”
IFRS issues 2025 taxonomy
The IFRS Foundation published its Accounting Taxonomy for 2025. Updates to the taxonomy are based on IFRS Accounting Standards as of 1 January 2025, including standards issued but not yet effective, a news release said.
According to the release, changes reflect new or amended requirements arising from:
- The new presentation and disclosure requirements introduced in IFRS 18, Presentation and Disclosure in Financial Statements.
- Contracts Referencing Nature-dependent Electricity which amended IFRS 7, 9, and 19.
- Amendments to IFRS 19, Subsidiaries Without Public Accountability: Disclosures, Classification and Measurement of Financial Instruments and Annual Improvements to the IFRS Accounting Standards—Volume 11.
Publications containing more information on those updates and amendments can be found in the news release.
IESBA consultation addresses auditor independence
A consultation from the International Ethics Standards Board for Accountants (IESBA) will address whether the board’s revisions to the Code of Ethics are necessary to address the independence of auditors.
This will specifically address auditors who carry audits of collective investment vehicles and pension funds, which are collectively referred to as “investment schemes” or “schemes”, a news release said.
“Investment schemes enable investors to pool their funds and often rely on external parties [or “connected parties”] for functions typically managed internally in conventional corporate structures,” the release said. “This structure introduces specific relationships that are highlighted in the consultation paper and need to be carefully considered to ensure that any threats to auditor independence are identified and appropriately addressed.”
The consultation is open for stakeholder comments until 30 June. Comments can be submitted online.
IAASB releases audit guidance for LCEs
A new implementation guide for less complex entities (LCEs) was issued by the International Auditing and Assurance Standards Board (IAASB), to provide an overview of the International Standard on Auditing’s (ISA’s) concepts, structure, and format, a news release said.
ISA, Financial Statements of Less Complex Entities,is the standalone global auditing standard designed specifically for audits of financial statements of LCEs and smaller entities, the release said. The guidance, offering insights into each part of the standard with examples and comparisons to other ISAs, is intended to equip practitioners with tools to effectively implement the standard.
This guidance is nonauthoritative and does not amend or override the text of the ISA for LCE but serves as a valuable resource to facilitate understanding and application, the release said.
UKEB seeks stakeholder feedback on cash flows standard
The UK Endorsement Board (UKEB), in its research project on the IASB’s cash flows standard, is seeking feedback from stakeholders about the use of the standard.
“In September 2024, the [IASB] started a research project on the Statement of Cash Flows and Related Matters in response to the feedback on its Third Agenda Consultation,” a UKEB statement said. “In the initial phase, the IASB is performing research on the nature and extent of perceived deficiencies in the requirements of IAS 7, Statement of Cash Flows.”
Users of financial statements can comment through a short survey. The comment deadline is 11 April. Questions about the survey can be sent by email to contact@endorsement-board.uk.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.