INTRODUCING IESBA’S NEW INNOVATIVE PRODUCT
On June 26th 2019, the International Ethics Standards Board for Accountants® (IESBA®) will launch its eCode – an innovative digital product that offers professional accountants a new way to engage with the International Code of Ethics for Professional Accountants (including International Independence Standards).
Participants are invited to join a 30-minute webinar on Wednesday, June 12, 2019 at 10am EST. To join, click here to register.
PROPOSED REVISIONS TO PART 4B OF THE CODE
To Reflect Terms and Concepts Used in ISAE 3000 (Revised)
The International Ethics Standards Board for Accountants (IESBA) seeks views from practitioners and other stakeholders in relation to proposed revisions to Part 4B of the revised and restructured International Code of Ethics for Professional Accountants (including International Independence Standards) to reflect terms and concepts used in International Standard on Assurance Engagements 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information.
Comments on the Exposure draft are requested by 26 June 2019.
AUDIT AND ASSURANCE
EXPOSURE DRAFTS AND CONSULTATION PAPERS
IAASB FUTURE STRATEGY & WORK PLAN CONSULTATION
The International Auditing and Assurance Standards Board (IAASB) invites stakeholders’ to participate in shaping the board’s strategy by commenting on the proposed draft.
In the Proposed Strategy for 2020–2023 and Work Plan for 2020–2021, the IAASB presents a way forward that it believes meets stakeholders’ evolving needs, and is in the public interest. This entails enhancing the Board’s processes, which includes, among others, using technology and appropriate resourcing. These enhancements will also maximize the impact of the Boards activities, thereby enabling more timely responses to global trends and needs.
Feedback on this consultation and on the IAASB’s strategic direction is requested by 4 June 2019 from all interested stakeholders.
EXTENDED EXTERNAL REPORTING ASSURANCE
The International Auditing and Assurance Standards Board (IAASB) seeks input on its progress in developing draft guidance in the first phase of its Extended External Reporting (EER) Assurance project.
EER encapsulates many different forms of reporting, including, but not limited to, integrated reporting, sustainability reporting and other reporting by entities about environmental, social and governance matters.
This Consultation Paper includes the first part of draft guidance for practitioners applying International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information to EER assurance engagements. The purpose of this Consultation Paper is to assist the IAASB to continue developing a complete non-authoritative guidance document that is due to be published in the second phase of the project as an exposure draft.
The IAASB particularly seeks input from those with practical experience in this evolving area of reporting, including practitioners and other experts involved in performing engagements, preparers of EER reports, investors and other users, standard setters and regulators. The deadline for comment to the IAASB is 21 June 2019.
QUALITY MANAGEMENT FOR FIRMS AND ENGAGEMENTS
The International Auditing and Assurance Standards Board (IAASB) has issued for comment, three interrelated standards that address quality management. The proposals bring important changes to the way professional accountancy firms are expected to manage quality—for audits, reviews, and other assurance and related services engagements.
The proposed standards include a new proactive risk-based approach to effective quality management systems within firms that establish the foundation for consistent engagement quality.
Comments on the Exposure Drafts are requested by 01 July 2019.
AUDIT OF LESS COMPLEX ENTITIES
Exploring Possible Options to Address the Challenges in Applying the ISAs
The IAASB seeks to further understand the challenges of using ISAs in audits of less complex entities—and views about possible actions to address these challenges. It recognizes the global call for action to address issues of complexity, length, understandability, scalability, and proportionality related to using the International Standards on Auditing. Continuing the debate on these strategic issues, this Discussion Paper explores how the IAASB, and others, could further support auditors working in increasingly evolving environments.
French translations will be available here.
Respondents are encouraged to provide input on or before 12 September 2019.
GUIDANCE AND SUPPORT TOOLS
Quality Management Standards and Small- and Medium-sized Practices
The IAASB has developed a video which explains how the IAASB’s proposed quality management standards are scalable for small- and medium-sized practices. Click here to access the video.
ISA 540 (Revised) Implementation Support: Flow Charts and Diagram
The International Standard on Auditing (ISA) 540 (Revised) Implementation Working Group has developed two flowcharts and a diagram to support the understanding, and effective implementation, of the standard which are available here.
PUBLIC SECTOR STANDARDS
GUIDANCE ON SIGNIFICANT AREAS OF PUBLIC EXPENDITURE
The International Public Sector Accounting Standards Board (IPSASB) has released a Consultation Paper (CP), Measurement, which addresses how measurement bases are determined in the public sector. The CP includes within it an illustrative Exposure Draft (ED), Measurement, whichshows what the IPSASB currently envisages a final pronouncement will comprise. This is the first time that the IPSASB has used such an approach, which is intended to provide a firm basis for constituent comments.
The CP lays out proposed guidance for measurement bases for the assets and liabilities most commonly used by public sector entities when applying IPSAS.
Comments on the Consultation Paper are requested by 30 September 2019.
ED/2019/1: INTEREST RATE BENCHMARK REFORM Proposed amendments to IFRS 9 and IAS 39
The International Accounting Standards Board (IASB) has published for public comment proposed changes to the old and new financial instruments Standards, IAS 39 and IFRS 9, in light of the reform of interest rate benchmarks such as interbank offer rates (IBORs).
The IASB has proposed to amend IFRS 9 Financial Instruments and IAS 39 Financial Instruments: Recognition and Measurement to provide relief from specific hedge accounting requirements that could have resulted in the discontinuation of hedge accounting solely due to the uncertainty arising from interest rate benchmark reform.
The comment deadline is 17 June 2019.
PROPOSED AMENDMENTS TO THE IFRS FOUNDATION DUE PROCESS HANDBOOK
The Trustees of the IFRS Foundation are inviting stakeholder comment on proposed amendments to its Due Process Handbook, the procedural requirements followed by the International Accounting Standards Board and the IFRS Interpretations Committee.
The Trustees have reviewed the Handbook and proposed amendments to ensure it is up-to-date in light of the activities of the Board and Interpretations Committee, remains fit for purpose and continues to reflect best practice.
Comments are due by 29 July 2019.