The International Ethics Standards Board for Accountants (IESBA) has submitted a response to the International Sustainability Standards Board (ISSB) on the ISSB’s Exposure Drafts – General Sustainability-Related Disclosures and Climate-Related Disclosures.
The IESBA believes that to meet the sustainability information needs of investors, customers, employees or potential employees, government agencies and other stakeholders, the infrastructure that supports sustainability reporting and assurance must be underpinned by the highest standards of ethical behavior. Fit-for-purpose, globally applicable standards, such as those set out in the IESBA Code and future, sustainability-related standards that the IESBA has already committed to developing, alongside a robust system of quality management, oversight and enforcement, are essential for consistent, relevant and trustworthy sustainability reporting.
The IPSASB's 4th Public Standard Setters Forum will provide a valuable opportunity for public sector accounting standards setters to build dialogue, exchange ideas, and discuss critical issues with other public sector standard setters and the IPSASB. Forum participants will be directly involved in scoping the IPSASB’s new guidance projects and in shaping its next 5-year strategy. The IPSASB's 2022 Forum, IPSASB 2.0: Taking it to the Next Level, will be held September 19 and 20 in Cascais, Portugal hosted by the Ordem dos Contabilistas Certificados (Order of Certified Accountants). The Forum is an exceptional opportunity to build connections with and gain insights from the unique experiences and expertise of standard setters around the world.
In December 2020, the IAASB approved its new and revised suite of quality management standards. They focus on quality and more robustly address firms’ governance and leadership, resources, communication, and monitoring and remediation. The standards are effective December 15, 2022.
Kazuko joined the IAASB in July 2024. Prior to joining IAASB, Kazuko was a Technical Advisor for IAASB member Sachiko Kai and an IAASB Staff Fellow for two years. As an IAASB Staff Fellow, she worked on International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (the ISA for LCE).
Before joining the IAASB, Kazuko spent almost 20 years working with KPMG AZSA LLC (KPMG). During her tenure at KPMG, she has mostly audited manufacturing companies and went on various secondments including KPMG Global Solutions Group where she worked with a team developing contents for audit tools.
Countries around the world are searching for ways to shift capital investments into activities that support the transition to a more sustainable, low-carbon economy. To finance that massive change, investors and regulators are looking to the sustainable debt market as an important vehicle in raising funds to finance projects that advance environmental, social and governance (ESG) objectives.
“Trust and confidence in this relatively new, still evolving, and rapidly expanding market is critical,” said Kevin Dancey, CEO of the International Federation of Accountants (IFAC). “Like any financial innovation, there are challenges. Smart regulation, standardization and external verification or assurance are needed to protect investor interests, mitigate the risk of greenwashing and enhance transparency. Verifying the details of these bond programs—both pre-issuance and in the form of annual updates for investors—is an essential part of maintaining integrity. The accountancy profession can help drive progress.”
A new, comprehensive study that delves into the challenges and opportunities that exist in the sustainable debt market – Navigating the sustainable debt market: Enhancing credibility in an evolving market – is the result of a collaborative effort by IFAC and Chartered Professional Accountants of Canada (CPA Canada), who recruited PwC Canada to conduct the underlying research.
While the sustainable debt market has evolved significantly over the last few years, the study identified a number of issues that need to be addressed for the benefit of all capital market participants. These challenges include: the proliferation of voluntary, market-driven guidance; lack of a common understanding of what projects and activities qualify as “green” or “sustainable”; and inconsistent reporting, impact measurement, external review and assurance practices.
“Sustainability is increasingly being integrated into business, investment and financing decisions,” said Pamela Steer, president and CEO, CPA Canada. “Serving the public interest is core to the global accounting profession. It has a critical role to play in advancing sustainable finance. Collectively, the profession will continue to advocate for better policy, regulation and standards in this area and the study will help inform the dialogue.”
As part of the overall push to make sustainability front and centre for business, IFAC and CPA Canada welcome the establishment of the International Sustainability Standards Board (ISSB) by the IFRS Foundation. Globally accepted sustainability standards will enhance the credibility of ESG disclosures by improving their consistency and comparability and this will help mitigate some of the challenges identified in the report.
About CPA Canada Chartered Professional Accountants of Canada (CPA Canada) works collaboratively with the provincial, territorial and Bermudian CPA bodies, as it represents the Canadian accounting profession, both nationally and internationally. This collaboration allows the Canadian profession to champion best practices that benefit business and society, as well as prepare its members for an ever-evolving operating environment featuring unprecedented change. Representing more than 220,000 members, CPA Canada is one of the largest national accounting bodies worldwide. cpacanada.ca
About IFAC IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of more than 180 members and associates in over 130 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.
The global accountancy profession is on a journey—along with investors, companies, regulators and other stakeholders—toward a unified, coherent, global and authoritative standard-setting process for reporting on sustainability information.
IFAC welcomes the establishment of the International Sustainability Standards Board (ISSB), as well as jurisdiction or regional initiatives that can contribute toward the creation of a global system for consistent, reliable and assurable sustainability disclosure.
In a joint statement today, IFAC joins with leading capital markets participants—PRI (Principles for responsible Investment) and WBCSD (World Business Council for Sustainable Development)—in calling for simplicity and alignment in the standard-setting process. At this critical juncture, regulatory and standard-setting fragmentation must be avoided through efforts to align key concepts, terminologies, and metrics upon which disclosure requirements are built.
The International Federation of Accountants (IFAC), World Bank Group MENA Governance Global Practice, and the Arab Federation of Accountants and Auditors (AFAA) are pleased to announce the organization of another webinar in the PFM series, focused on the transition from cash to accrual accounting in the MENA region.
Simultaneous live interpretation will be available in English and Arabic.