The International Federation of Accountants (IFAC) launched a public consultation focused on proposed revisions to its Statement of Membership Obligations (SMOs), to uphold high-quality international standards and best practices.
SMOs provide a framework to support “a strong and sustainable” global accountancy profession, a news release said. To reflect recent developments to international standards, the proposed revisions are intended to:
Enhance quality assurance reviews. IFAC plans to update quality assurance review procedures to align with the International Auditing and Assurance Standards Board’s (IAASB’s) quality management standards.
Emphasise flexible entry requirements for accounting education programmes. Reinforce the evaluation of flexibility entry pathways into professional accounting education as outlined in the international education standards.
Evaluate adoption of the IAASB’s ISA for LCE. Clarify expectations for adopting and implementing the International Standard on Auditing for Less Complex Entities (ISA for LCE).
Adopt IFRS sustainability disclosure standards. IFAC looks to formalise the expectation to adopt or work towards the adoption of all IFRS standards, including S1 and S2, issued by the International Sustainability Standards Board (ISSB).
The consultation is open until 8 August. Comments can be submitted online.
After the consultation and IFAC Board approval, the revised SMOs are expected to take effect on 1 January 2026.
IFRS Foundation clarifies SME standard changes
The IFRS Foundation published standard revision guidance to help stakeholders identify the changes between the second and third editions of the IFRS for SMEs Accounting Standard.
The new resource includes the full text of the standard, with all changes in the third edition marked up to help stakeholders assess the effects of the changes and prepare for implementation, a news release said.
UK government resources focus on cyber resilience
New resources from the UK government’s Department for Science, Innovation, and Technology, the National Cyber Security Centre, and Cyber Security Minister Feryal Clark MP aim to ensure that cyber risk management effectively supports business resilience and growth.
The government’s Code of Practice (the Code) sets out how business leaders can protect their day-to-day operations and secure future growth, a news release said. Also, resources under the Cyber Local scheme are intended to help small businesses receive tailored funding to boost regional cyber skills.
“Cyberattacks have become increasingly common, with 74% of large businesses and 70% of medium-sized firms experiencing attacks and breaches in the past year,” the release said. “With a third of large businesses lacking a formal cyber strategy and nearly half of medium firms operating without an incident response plan, the Code provides the direction leaders need to take control of their cyber risk.”
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.
