A new consultation focuses on introducing a proposed UK sustainability standard based on International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements. A UK version of the international standard is being proposed for use on a voluntary basis by assurance providers.
The UK Financial Reporting Council’s (FRC’s) consultation proposes alignment with the international standard to minimise burdens for firms carrying out assurance engagements across multiple jurisdictions, a news release said. The proposed standard follows stakeholder enthusiasm for a clear and internationally consistent assurance framework, a sentiment identified through the regulator’s sustainability assurance UK market study.
It is important that the UK establishes a “consistent sustainability assurance” framework that underpins investor confidence, Mark Babington, the FRC’s executive director of regulatory standards, said in the release. “We encourage all interested parties — from assurance providers and investors to businesses and sustainability experts — to respond to this important consultation and help shape the future of sustainability reporting in the UK.”
The deadline for comment is 31 July. Stakeholders can submit feedback by email to AAT@frc.org.uk.
EU looks to cut costs for SMEs
Proposed simplification measures aim to cut €400 million in annual administrative costs for companies in the EU. The European Commission plans to cut administrative costs by 25% overall and by 35% for small- and medium-size entities (SMEs).
In addition, the creation of a new category for small businesses, small-mid caps (SMCs) (ie, companies with fewer than 750 employees and either up to €150 million in turnover or up to €129 million in total assets), will allow more companies to access certain SME benefits, a news release said. Those benefits include derogations under the General Data Protection Regulation (GDPR) and reduced costs for stock market listings.
FRC amends FRS 101
Amendments to FRS 101, Reduced Disclosure Framework, were issued with the intent to enable streamlined group reporting and, where possible, deliver cost-effective disclosure reductions. The amendments issued follow the close of the FRC’s annual review of the standard.
The revisions relate to “developments in IFRS accounting standards, notably disclosure exemptions from new requirements of IFRS 18,” a news release said. “It is confirmed that IFRS 19, Subsidiaries Without Public Accountability: Disclosures, and FRS 101 cannot be applied together.”
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