The International Federation of Accountants (IFAC) has unveiled proposed changes to the International Education Standards (IESs) that embed sustainability—from analysis to reporting to assurance—across aspiring professional accountants’ training.

IFAC CEO Lee White emphasized the significance of the proposed changes, stating, “Investors and other stakeholders need sustainability reports and disclosures that are on par with the high-quality, decision-useful financial reports that accountants already deliver. To be future-fit, accountants must develop the right competencies to meet this need. The proposals provide a robust framework for the profession to develop capable accountants who produce, report, and assure sustainability information.”

Key proposals include:

• Emphasizing working with experts and in multi-disciplinary teams;
• Introducing key sustainability reporting concepts, such as systems thinking, value chains and scenario analysis;
• Referencing relevant sustainability reporting and assurance standards; and
• Creating a new assurance competence area and learning outcomes.

Additionally, IFAC has proposed changes to IES 6, Initial Professional Development – Assessment of Professional Competence, to modernize the standard to align with current good practice and clarify previously-existing requirements. This includes introducing new principles emphasizing integrity, authenticity, equity, and inclusion. These changes will aid professional accountancy organizations, universities, and training programs in evaluating candidates’ readiness for the professional accountant role.

To help its stakeholders and the accountancy profession understand the proposed changes related to sustainability, IFAC will hold global webinars on May 21. Visit the IFAC website for additional details and to register.

IFAC encourages all stakeholders to provide feedback on both set of proposed changes by July 24, 2024, using the Response Templates available on the IFAC website.

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 180 members and associates in more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.

The International Public Sector Accounting Standards Board (IPSASB) has released Exposure Draft (ED) 89, Amendments to Consider IFRIC Interpretations for public comment. ED 89 proposes amendments based on five IFRIC Interpretations issued by the IFRS Interpretations Committee which the IPSASB had not yet considered. The IPSASB proposes amendments to IPSAS for guidance based on the IFRIC Interpretations which are applicable for public sector entities and helpful in applying existing IPSAS principles.

“The amendments proposed in ED 89 draw on previous IFRIC Interpretations to clarify how public sector entities should apply IPSAS in key areas, thereby avoiding divergent accounting treatments,” said IPSASB Chair Ian Carruthers. “Going forward, the IPSASB will consider the applicability of future IFRIC Interpretations as they are issued to ensure we continue to support the public sector effectively.”  

Feedback to ED 89 will help shape the updates to IPSAS to clarify the application of existing accounting principles for these specific matters.

How to Comment
Access the Exposure Draft, its summary At-a-Glance document, or submit a comment. Comments are requested in English by June 17, 2024. The IPSASB encourages IFAC members, associates, and regional accountancy organizations to promote the availability of this Exposure Draft to their members and employees.

About the IPSASB
The International Public Sector Accounting Standards Board® (IPSASB®) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards™ (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the government of Canada. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.

New standards will strengthen the ethical framework that guides professional accountants providing tax planning services; other providers strongly encouraged to follow the standards

Comprehensive framework includes a new requirement and guidance on due consideration of reputational, commercial, and wider economic consequences in their tax advice

Aims to restore public trust on a core topic to the social contract between corporations and the market which supports them

The International Ethics Standards Board for Accountants (“IESBA”) today announced the launch of the first comprehensive suite of global standards on ethical considerations in tax planning and related services, incorporated in the IESBA Code of Ethics.

Following certification by the Public Interest Oversight Board (PIOB), the standards establish a clear framework of expected behaviors and ethics provisions for use by all professional accountants, and respond to public interest concerns about tax avoidance and the role played by consultants in light of revelations in recent years such as the Paradise and Pandora Papers. 

Moving away from a purely mechanical and legalistic approach, the goal of the standards is to provide a principles-based framework and a global ethical benchmark applicable to tax planning services and activities. This will establish a consistent point of reference for all professional accountants, as well as other tax professionals who are strongly encouraged to use the standards, when dealing with tax planning, to ensure due consideration of public interest as well as potential reputational, commercial, and wider economic consequences for their clients or employing organizations.

These standards are especially relevant in the context of rising public scrutiny of tax avoidance schemes which can harm companies’ credibility and corporate reputation, as well as risking litigation and harming the public interest. Responding to increased public interest concerns, the fundamental goal of these standards is to ensure an ethical, credible basis for advising on tax planning arrangements, thereby restoring public and institutional trust on a topic that is core to the social contract between corporations and the market which supports them.

Gabriela Figueiredo Dias, Chair of the IESBA commented: “Professional accountants have an important duty to their clients but must not lose sight of their fundamental duty to the public interest. As scandals in recent years have shown, though some behaviors may be legal under the letter of the law in certain jurisdictions, the ‘grey area’ of tax is not always the ethical way forward. These standards provide a robust framework to help professional accountants, as well as all other tax advisers whom we strongly encourage to adopt or use the standards, navigate the ethical decisions in this complex area that are central to trust in the entire system.”

Pascal Saint-Amans, former Director OECD Centre for Tax Policy and Administration, said: “I commend IESBA on the launch of the world’s first ethics standards on tax planning, which I’m sure will catalyze a much-needed change in mindset and behaviors.  As public scrutiny increases, tax avoidance becomes less tolerated. Ethics is a central tenet of good tax behavior and advice and IESBA’s work in this area not only generates important discussion on the topic, but also is central to restoring public trust more broadly.”

These new standards are aimed at complementing and further strengthening the relevance of the existing IESBA Code addressing Tax Planning and Related Services. The standards become effective July 1, 2025.

The approval of the new standards was preceded by extensive outreach and public consultation which took place during 2021-2023, including three global roundtables involving over 150 senior-level representatives from stakeholders from very different jurisdictions and backgrounds.

Final Pronouncement - Revisions to the Code Addressing Tax Planning and Related Services

Expansion of IESBA activity to address culture and governance at accounting firms

Exploration of increased scope and applicability of the IESBA Code to all individuals who perform the same activities as professional accountants

New workstream to address the evolving role of the CFO in protecting the integrity of financial and non-financial information.

The International Ethics Standards Board for Accountants (IESBA) today announced the publication of its Strategy and Work Plan for 2024-2027 (SWP), titled Towards a More Sustainable Future: Advancing the Centrality of Ethics. The SWP sets out the IESBA's vision and strategic goals and actions, underpinning its ambition to put the International Code of Ethics for Professional Accountants (including International Independence Standards) at the heart of business and organizations.

"Putting ethics at the center of every business judgment and decision is the surest way to earn, restore and strengthen public trust in all that an organization does. The external landscape continues to evolve, presenting new dynamics and challenges, but good ethical behavior acts as a constant amidst the uncertainty. It is about integrity, expected behaviors and mindset, and making the right decision,” said Gabriela Figueiredo Dias, IESBA Chair. “Our new strategic plan reflects the IESBA’s unwavering determination to face the external environment head-on, broaden the reach and scope of our work, and set the highest standards of ethical conduct for professional accountants and others who play a role, large or small, in the financial and non-financial information supply chain. That is how our work, vision and ambition support the proper functioning and sustainability of organizations, financial markets and economies worldwide in the public interest."

Within the SWP, the IESBA has identified two high-priority strategic areas of focus, namely:

• Accounting firm culture and governance, which seeks to identify potential actions the IESBA might take within or outside the Code to respond to the persistent high-profile cases of unethical behavior in accounting firms.
• Exploring the opportunity to extend the impact of the Code beyond the accountancy profession to a wider array of individuals who perform similar work as professional accountants, building on its current project to develop profession-agnostic ethics, including independence, standards for all sustainability assurance practitioners. Among other matters, this will include a new workstream to explore expanding the scope and applicability of the Code beyond professional accountants to all preparers of sustainability information.

Other key highlights of the SWP include:

• New initiatives to explore ethical considerations relating to the evolving role of CFOs and other senior professional accountants in business, and independence considerations relating to business relationships between firms and their audit clients.
• A commitment to conduct a series of post-implementation reviews for significant ethics, including independence, standards the IESBA issued in recent years.
• Ongoing monitoring of the rapidly changing landscape of technological transformations and their impact on the professional activities and services performed by professional accountants and others, with a view to determining the need for any further standard-setting or other actions the IESBA might take in the public interest.
• A commitment to close coordination with the IESBA’s sister Board, the International Auditing and Assurance Standards Board (IAASB), and to fostering collaborative relationships with other standard-setters to ensure standards interoperability.

The SWP represents the culmination of careful assessment of market developments and thoughtful consideration of stakeholder feedback from the IESBA’s extensive outreach and consultation activities over a two-year period.

In developing its SWP, the IESBA engaged closely with IAASB, which today also issued its Strategy and Work Plan 2024-2027, Advancing Public Trust and Strengthening Global Audit and Assurance.

About IESBA

The International Ethics Standards Board for Accountants serves the public interest by setting high-quality ethics standards, including independence requirements, as a cornerstone to ethical behavior in business and organizations, and to public trust in financial and non-financial information that is fundamental to the proper functioning and sustainability of organizations, financial markets and economies worldwide.

Along with the International Auditing and Assurance Standards Board (“IAASB”), the IESBA is part of the International Foundation for Ethics and Audit (“IFEA”). The Public Interest Oversight Board (“PIOB”) oversees IESBA and IAASB activities and the public interest responsiveness of the standards.

The International Auditing and Assurance Standards Board (IAASB) published its approved strategy and work plan aimed at enhancing consistency and quality of audit and assurance standards worldwide. Elevating Trust in Audit and Assurance: IAASB’s Strategy and Work Plan for 2024-2027 reflects the crucial role of audit and assurance in fostering trust in the world’s economies.

"Audit and assurance play vital roles in the world’s economies,” said IAASB Chair Tom Seidentstein. “At their best, audit and assurance practitioners enhance trust in markets and assist in efficient, sustainable resource allocation. That is why the IAASB is dedicated to developing relevant, high-quality standards under a rigorous and transparent due process.”

The IAASB's previous strategy (2020-2023) saw significant progress on key objectives, including adopting agile methodologies and engaging with a broader range of stakeholders. Notable achievements include the suite of quality management standards, an enhanced special considerations standard for audits of group financial statements, the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (known as the ISA for LCE), and developing a proposed standard for sustainability assurance engagements, among other achievements.

Building upon these successes, the new Strategy reaffirms the IAASB's commitment to serving the public interest by developing globally accepted audit, review, and other assurance standards.

Key highlights of the Strategy include:

• Completing priority audit and assurance projects, with emphasis on fraud, going concern, and sustainability assurance.
• Commencing new initiatives and projects, including focusing on supporting the adoption and implementation on our overarching standard for sustainability assurance engagements, establishing an IAASB Technology Position, and conducting post-implementation reviews, as well as standard setting on, among other topics, audit evidence and risk response, materiality, and reviews of interim financial information.
• Collaborating with official stakeholders across the external reporting ecosystem, including the International Ethics Standards Board for Accountants (IESBA), regulators, and standard setters, in addition to other stakeholders.
• Engaging with regulatory and standard-setting partners to strengthen trust in markets globally.
• Further implementing the Monitoring Group’s recommendations to enhance independence and accountability in standard setting.

IESBA, IAASB’s partner board, also issued its strategy and work plan for the same period today, Towards a More Sustainable Future: Advancing the Centrality of Ethics. It features IESBA’s vision and strategic goals, underpinning its ambition to achieve global recognition and acceptance of the International Code of Ethics for Professional Accountants (Including Independence Standards).

About the IAASB
The International Auditing and Assurance Standards Board develops auditing, assurance, related services, and quality management standards and guidance in the public interest that support consistent performance of quality engagements. Along with the International Ethics Standards Board for Accountants, the IAASB is part of the International Foundation for Ethics and Audit. The Public Interest Oversight Board oversees IAASB and IESBA activities and the public interest responsiveness of the standards. For copyright, trademark, and permissions information, please visit Permissions

The International Federation of Accountants (IFAC) has released a new publication setting out four key areas where accountants need to update their knowledge to meet the growing demand for high-quality sustainability-related information. Equipping Professional Accountants for Sustainability: What's New and What Hasn't Changed speaks to the vital role accountants play in producing reliable sustainability-related data, reporting and assurance, as well as the importance of education and training in ensuring professional accountants are able to meet society’s needs.

Much of what accountants already do is transferable to sustainability; however, new topics and challenges require new ways of thinking and working. The framework aims to help professional accountants as well as professional accountancy organizations close any gaps between known and needed technical expertise, business acumen, behavioral competence, and ethics and professional values.

The publication was developed following previous sustainability and education research as part of work to revise the International Education Standards and with the support of the IFAC International Panel on Accountancy Education.

The publication is available on the IFAC website and complements IFAC's existing resources on sustainability, including webinars, podcasts, and publications, all of which are available on the IFAC Knowledge Gateway.

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 180 members and associates in more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.

About the International Education Standards
The International Education Standards (IESs), issued by the International Federation of Accountants, set forth the principles that professional accountancy organizations should follow to build a national accountancy profession that is fully capable of fulfilling the complex demands economies and societies place on it. The IESs are authoritative and are used by IFAC member organizations when setting education requirements for professional accountants and aspiring professional accountants.

As the International Auditing and Assurance Standards Board reaches the midpoint of its public consultation on proposed amendments to its fraud standard, a new four-part video series has been released. The series will help stakeholders understand the proposed changes that strengthen auditor’s responsibilities related to fraud, and the rationale behind them.

Explore the ‘Understanding Proposed Changes to the Fraud Auditing Standard Video Series’:

• Overview of Key Changes: Gain an understanding of the proposed key changes from IAASB Member and Fraud Task Force Chair Julie Corden. Julie also provides brief background information and why these changes are being proposed.
• Spotlight on Auditor’s Responsibilities: Understand auditors’ responsibilities relating to fraud in an audit. IAASB Senior Manager Nathalie Baumgaertener Dutang explains how the proposed changes make these responsibilities clearer and more practical.
• Auditor’s Response to Fraud or Suspected Fraud: How are auditors, and engagement partners, being asked to enhance how they respond to fraud or suspected fraud? IAASB Principal Angelo Giardina outlines the new requirements, relocated requirements, and clarifications.
• Enhanced Transparency in the Auditor’s Report: Join IAASB Director Jasper van den Hout to learn more about how the proposed changes will enhance transparency in the auditor’s report regarding auditors’ responsibilities relating to fraud as well as fraud-related procedures (i.e., Key Audit Matters related to fraud).

The proposed changes to ISA 240 significantly strengthen auditors’ responsibilities relating to fraud. The IAASB encourages all stakeholders to submit their comments using the Response Template, designed to facilitate structured responses and streamline feedback collation and analysis. Stakeholders are invited to share their insights by June 5, 2024.

To assist governments and government entities interested to report in accordance with the accrual-based International Public Sector Accounting Standards (IPSAS), IFAC has released a package of training materials collectively titled Implementing IPSAS: A Guide for Trainers for use by trainers to teach others about the standards and how to apply them.  

Implementing IPSAS: A Guide for Trainers is the 2024 edition to Train the Trainer: Introduction to IPSAS released in November 2020. The 2024 edition includes updates to incorporate standards and pronouncements recently issued, including IPSAS 46, Measurement, IPSAS 47, Revenue, IPSAS 48, Transfer Expenses, and IPSAS 43, Leases. 

Implementing IPSAS: A Guide for Trainers contains ten modules separated into topics that can be delivered as individual sessions. Each module includes a manual for the trainer and an accompanying set of slides which can be customized to suit their specific needs. Some modules also contain supplementary video content. 

Access the guide.  

The Staff of the International Ethics Standards Board for Accountants (IESBA) today released a high-level summary of prohibitions in the International Code of Ethics for Professional Accountants, (including International Independence Standards) (the Code), especially in relation to independence for audits of public interest entities (PIEs). 

The high-level summary is designed to highlight non-assurance services, relationships, interests or circumstances that are prohibited for PIE audits. It will be a useful reference to stakeholders, including regulators and audit oversight bodies, audit firms and individual audit practitioners, the corporate governance community, investors, preparers, and educational bodies or institutions.

The high-level summary is not a substitute for reading the Code. Footnote references to the relevant provisions in the Code have been provided to assist further understanding of the prohibitions. 

About The IESBA

The International Ethics Standards Board for Accountants^® (IESBA^®) is an independent global standard-setting board. The IESBA’s mission is to serve the public interest by setting ethics (including independence) standards as a cornerstone to ethical behavior in business and organizations, and to public trust in financial and non-financial information that is fundamental to the proper functioning and sustainability of organizations, financial markets and economies worldwide.

Along with the International Auditing and Assurance Standards Board (IAASB), the IESBA is part of the International Foundation for Ethics and Audit (IFEA). The Public Interest Oversight Board (PIOB) oversees IESBA and IAASB activities and the public interest responsiveness of the standards.

The IESBA held interactive global webinars to present the key proposals in the Exposure Drafts on International Ethics Standards for Sustainability Assurance (including International Independence Standards) (IESSA) and Other Revisions to the Code Relating to Sustainability Assurance and Reporting and Using the Work of an External Expert.

The Exposure Draft on IESSA and ethics standards for sustainability reporting proposes a clear framework of expected behaviors and ethics provisions for use by all sustainability assurance practitioners, regardless of their professional backgrounds, as well as professional accountants involved in sustainability reporting. The goal of these standards is to mitigate greenwashing and elevate the quality of sustainability information, thereby fostering greater public and institutional trust in sustainability reporting and assurance.

The Exposure Draft on Using the Work of an External Expert proposes an ethical framework to guide professional accountants or sustainability assurance practitioners, as applicable, in evaluating whether an external expert has the necessary competence, capabilities, and objectivity in order to use that expert’s work for the intended purposes. The proposals also include provisions to aid in applying the Code’s conceptual framework when using the work of an external expert.

These proposed ethics (including independence) standards are especially relevant in a context where sustainability information is increasingly important for capital markets, consumers, corporations and their employees, governments and society at large, and when assurance providers outside of the accounting profession play a prominent role in sustainability assurance.

The webinars will provide useful information and valuable insight on the proposals in the Exposure Drafts for participants from all stakeholder groups, including regulators, preparers of sustainability information, sustainability assurance practitioners from all backgrounds, and investors.

The webinars were held in English and are available on IESBA’s YouTube Channel (link)

Webinar for the Using the Work of an External Expert Exposure Draft

Timing: February 22, 7:00 to 8:00 am EST

Presenters:

• Laurie Endsley, IESBA Vice Chair and Using the Work of an External Expert Task Force Chair
• Kam Leung, IESBA Principal

Webinar #1 for the Sustainability Exposure Draft

Timing: February 27, 9:00 to 11:00 am EST

Presenters:

• Mark Babington, IESBA member and Sustainability Workstream 1 Chair
• Richard Huesken, IESBA member and Sustainability Workstream 2 member
• Laura Leal, IESBA Principal
• Jon Reid, IESBA Principal
• Szilvia Sramko, IESBA Principal

Moderator: Geoff Kwan, IESBA Director

Webinar #2 for the Sustainability Exposure Draft

Timing: March 5, 8:00 to 10:00 pm EST

Presenters:

• Channa Wijesinghe, IESBA member and Sustainability Workstream 1 member
• Richard Huesken, IESBA member and Sustainability Workstream 2 member
• Laura Leal, IESBA Principal
• Jon Reid, IESBA Principal
• Szilvia Sramko, IESBA Principal

Moderator:  Geoff Kwan, IESBA Director