IFAC, the International Federation of Accountants, which comprises 180 member and associate organizations and represents 3 million professional accountants globally, continues its work to support the establishment of global sustainability standards in the public interest.
In this regard, IFAC endorses the most recent actions announced by the IFRS Foundation Trustees and IOSCO.
Specifically, IFAC supports the IFRS Foundation’s formation of a working group and efforts to set up a multi-stakeholder expert consultative committee, both of which will accelerate progress towards a successful standards setting board. These steps demonstrate the IFRS Foundation’s focus on delivering with speed by leveraging and bringing together the work of existing initiatives.
IFAC further supports IOSCO’s establishment of a new Technical Expert Group under its Sustainable Finance Task Force, which demonstrates growing international demand for the work of the IFRS Foundation.
IFAC CEO Kevin Dancey said, “IFAC reiterates its support for the IFRS Foundation to establish an international standard setting board with a focus on enterprise value creation, a unique connection to the work of the IASB, and backing from IOSCO and other authorities. This approach offers the quickest and most effective route to a baseline of internationally consistent sustainability-related disclosures for enterprise value creation developed in the public interest. IFAC calls for international collaboration and cooperation to make this initiative a success.”
Read Kevin Dancey’s most recent letter to IFAC member organizations here.
Welcomes Latest Steps by IFRS Foundation Trustees and IOSCO
The Tool was created to help and support IFAC member organizations on their digital journey. Each participating PAO will receive a report containing their results.
This Guidance responds to ten key stakeholder-identified challenges commonly encountered in applying International Standard on Assurance Engagements 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information. The guidance promotes consistent high-quality application of ISAE 3000 (Revised) in sustainability and other external reporting assurance engagements to:
The IPSASB held its first meeting of the year virtually on March 16-19 and 23, 2021.
Accounting and Reporting by Retirement Benefit Plans
The IPSASB approved a Project Brief on Accounting and Reporting by Retirement Benefit Plans. In adapting IAS 26, Accounting and Reporting by Retirement Benefit Plans to the public sector, the IPSASB agreed to consider alternatives developed by National Public Sector Standard Setters to address the public sector issues identified.
IFRS 8, Operating Segments
The IPSASB received an educational session on a proposed limited-scope project to develop an IPSAS aligned with IFRS 8, Operating Segments. The session provided an overview of the requirements of IPSAS 18, Segment Reporting, IFRS 8, and public sector specific issues identified by stakeholders. The IPSASB decided to undertake more research and specifically gather further information related to the challenges in applying IPSAS 18 in practice before it decides whether to add the project to the Work Program.
Revenue
The IPSASB discussed several key topics arising from the responses received on the revenue Exposure Drafts (ED) 70 and ED 71. The IPSASB:
Decided that the proposed standards should be named and presented to reflect the prevalence of different types of revenue transactions in the public sector; and
Clarified the accounting principles related to the concepts of binding arrangements, performance obligations, and what gives rise to a liability in a binding arrangement without performance obligations.
Natural Resources
The IPSASB continued its review of the draft Consultation Paper (CP) and provided feedback on the measurement of subsoil resources, the approach used to draft the chapter on living resources, and the description of living resources. In addition, the IPSASB decided the CP will:
Include guidance on the costs of exploration, evaluation, development, and production activities;
Provide potential options on how this guidance could be incorporated into IPSAS literature; and
Solicit constituents’ views on these options.
Mid-Period Work Program Consultation
The IPSASB received presentations on its 2019-2023 Strategy and Work Plan and academic outreach initiatives, including three research papers on proposed projects. These presentations set the stage for a robust discussion on prioritizing projects to be proposed in the Mid-Period Work Program Consultation. The work to develop the Mid-Period Work Program Consultation will continue during Q2 2021, and it is expected to be approved in June 2021.
Conceptual Framework-Limited Update-Next Stage
The IPSASB agreed to the grouping of topics proposed for the next stage of the project. The topics are those in the original project brief not addressed in the first stage of the project, except for concepts of capital and capital maintenance, which, because of their complexity, should be taken forward separately on a longer timeframe. The IPSASB also agreed to add the description of service potential in the context of an asset to the list of topics.
Next Meeting
The next full-meeting of the IPSASB will take place virtually in June 2021. For more information, or to register as an observer, visit the IPSASB website.
