The International Auditing and Assurance Standards Board (IAASB) is pleased to announce the reappointment of Tom Seidenstein as IAASB Chair for a further three-year term commencing July 1, 2022.

Mr. Seidenstein has chaired the IAASB since July 2019 and has been instrumental in the delivery of milestone projects, such as the new quality management standards, and addressing the issue of standards for less complex entities.

“We are delighted with Tom's reappointment as Chair of the IAASB,” said Linda de Beer, Chair of the Public Interest Oversight Board (PIOB). “He has proven himself to be an effective, strategic leader, who is focused on delivering results in the public interest.  He has the confidence of the PIOB to lead the IAASB on the next chapter of its journey to prioritize standards development in a timely manner to respond to the needs and challenges of the market.”  

The reappointment comes at a pivotal time for the IAASB. The Board has released an ambitious work plan (A Public Interest Focus in Uncertain Times) and is active and engaged on trending topics such as fraud, going concern, sustainability reporting and assurance, and technology.

“It is an honor to continue the work we’ve started at the IAASB,” said Mr. Seidenstein. “Together with a great staff and Board, we’ve delivered on our work plan commitments. We provided real help to the market during the pandemic by publishing real-time guidance to the accountancy profession. Now, as the public interest demands evolve with issues such as sustainability assurance and technological innovation, the IAASB must remain resolute in delivering globally accepted standards in a timely manner that respond to changing public interest needs. I’m excited for the next three years!”

Prior to joining the IAASB, Mr. Seidenstein has held senior strategic leadership positions at the Federal National Mortgage Association, commonly known as Fannie Mae, and the IFRS Foundation. Mr. Seidenstein has also served as a Trustee of the International Valuation Standards Council (IVSC) and on XBRL International’s Board of Advisors. He holds a Master in Public Policy from the Kennedy School of Government at Harvard University and an undergraduate degree from the School of Public and International Affairs at Princeton University.

About the IAASB

The International Auditing and Assurance Standards Board develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

Today, the International Auditing and Assurance Standards Board (IAASB) published key takeaways from its recent Paris conference on the audits of financial statements of less complex entities (LCEs). Drawn from two days of discussions with more than 130 participants from 33 jurisdictions, the takeaways indicate a strong steer for the IAASB to finalize the develop of a separate standard for audits of financial statements of LCEs in the public interest.

Key takeaways focus on themes around the continuing need for a timely global solution comprising a separate, standalone standard; working towards a common understanding of what an ‘LCE’ is and that this should also appropriately include audits of group financial statements; ways to support adoption and implementation of the standard; and the importance of communication about how the standard helps serve the public interest.

Along with the feedback from the public consultation on the exposure draft of the landmark new LCE standard, the key takeaways will help shape the draft standard and IAASB actions. The IAASB will next discuss the proposed LCE standard at its June meeting, which will be livestreamed on YouTube.

Integrated reporting has been adopted as a market-led initiative by thousands of private and public sector organizations around the world to help them understand and communicate their value creation and performance to investors and other stakeholders.

To enhance trust in integrated corporate reporting, boards need to oversee the integrity of the integrated report and underlying reporting process. To help them, IFAC has worked in partnership with the Institute of Internal Auditors (IIA) to develop Executing the Board’s Governance Responsibility for Integrated Reporting—the second installment in IFAC’s integrated reporting assurance series. It highlights how boards execute their accountability responsibility for integrated reporting and integrated reports with the coordination of all lines of governance and the support of internal auditors.

Board responsibility statements incorporate multiple internal assurance activities across all lines of governance and management and support the integrity of the integrated report and the underlying processes, systems, and information. This installment highlights the concepts and tools needed to deliver such statements. These can also be applied to regulated forms of management commentary in many parts of the world, including management discussion and analysis, strategic report, operating and financial review or the Task Force on Climate-Related Financial Disclosures.

“The IFRS Foundation’s announcement on the future of integrated reporting and the International Integrated Reporting <IR> Framework confirms that the International Accounting Standards Board (IASB) and International Sustainability Standards Board (ISSB) will assume responsibility for the <IR> Framework from July,” said Kevin Dancey, IFAC CEO. “Within the IFRS Foundation, the Framework will be further developed to help companies prepare an integrated report and support connectivity between the reporting required by the IASB and the ISSB. This installment of IFAC’s integrated reporting assurance series shows how directors can deliver confidence in integrated reporting through coordinated and connected internal and external assurance activities.”

“As an integral component of effective organizational governance, internal audit plays a critical role in instilling trust and confidence in the completeness, accuracy, and reliability of the information that forms the basis of the organization’s integrated report,” said Anthony Pugliese, CIA, CPA, CGMA, CITP, president and CEO of The IIA. “As noted in the widely accepted Three Lines Model, internal audit provides objective assurance, independent from management, of internal controls critical to achieving organizational objectives, including objectives related to integrated thinking and reporting.”

Access Executing the Board’s Governance Responsibility for Integrated Reporting. 

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 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

About The IIA
Established in 1941, The Institute of Internal Auditors (IIA) is an international professional association with global headquarters in Lake Mary, Florida, USA. The IIA is the internal audit profession's global voice, recognized authority, acknowledged leader, chief advocate, and principal educator. Generally, members work in internal auditing, risk management, governance, internal control, information technology audit, education, and security.

While there has recently been significant progress towards the development of a global baseline for sustainability reporting in the private sector, public sector sustainability reporting has yet to move forward in the same way. Governments are significant in expenditure and employment terms in all jurisdictions, as well as in the global bond market. How and where they spend the money they raise through the taxes everyone pays will therefore be critical in successfully delivering the United Nation’s Sustainable Development Goals (SDGs), and making meaningful progress on climate change. As a result of expected differences in focus and coverage compared with the private sector, global public sector sustainability reporting guidance will be required to bring the necessary transparency and comparability to government activities in this important area.

In response to stakeholder demand, including from the World Bank, today the International Public Sector Accounting Standards Board® (IPSASB®) launched a global consultation on developing a sustainability reporting framework for the public sector. To kick-off the discussion, the IPSASB has issued its Consultation Paper, Advancing Public Sector Sustainability Reporting. Comments are requested by September 9, 2022.

“The IPSASB has the experience, processes, and relationships to develop global public sector sustainability reporting guidance efficiently and effectively,” said Ian Carruthers, IPSASB Chair. “We are ready to take on this responsibility, and the consultation paper we released today outlines how we would tackle this critical work through collaboration with others, and building on our 25 years of standard setting experience.”

The aim of the public consultation process is to evaluate the demand from stakeholders for global public sector specific sustainability reporting guidance, as well as the degree of support for IPSASB developing such guidance, the priority areas for coverage, and how this might be approached.

Within this consultation paper, the IPSASB proposes to:

• Serve as the standard setter for global public sector specific sustainability reporting guidance, drawing upon its experience, processes and global relationships.
• Develop initial guidance focused on the topics of general disclosure requirements for sustainability-related information and climate-related disclosures by drawing on the initial work of the newly formed International Sustainability Standards Board in these areas.
• Approach guidance development at an accelerated pace, with a potential for releasing initial guidance by the end of 2023.

To this end, strong stakeholder support and commitment are essential. The consultation paper lays out what the IPSASB believes is necessary to get started now, and the resources, including additional funding, required, to deliver public sector specific sustainability reporting guidance, in a timely manner.

How to Comment

Visit the IPSASB’s website to access the Consultation Paper. Comments are requested by September 9, 2022. The IPSASB encourages IFAC members, associates, and Network Partners to promote the availability of this Consultation Paper 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 governments of Canada and New Zealand. 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.

The International Public Sector Accounting Standards Board® (IPSASB®) has released its Mid-Period Work Program Consultation Summary. The Consultation Summary confirms the projects added to the IPSASB’s work program, and explains the process followed to obtain stakeholder feedback on the Board’s original proposals, as well as the reasons for the IPSASB’s decisions.

“In determining which projects to add to its 2022 work program, the IPSASB has had to balance delivery of its current financial reporting work program with the strong support for the projects proposed in the 2021 Mid-Period Work Program Consultation, and the demands from stakeholders for sustainability reporting guidance,” said IPSASB Chair Ian Carruthers. “The Board’s decision to add four projects to its 2022 work program reflects the balancing act needed to address the diverse needs of the IPSASB’s many stakeholders.”

The four projects added to the IPSASB’s work program where work will be undertaken during 2022 are:

(a)        Presentation of Financial Statements;

(b)        Differential Reporting;

(c)        Reporting Sustainability Program Information (Limited-scope project); and

(d)        Global Consultation on Advancing Public Sector Sustainability Reporting.

The IPSASB originally proposed to add another four limited-scope projects. These all received strong stakeholder support, so the projects below have been added as pre-commitments for the IPSASB’s future Work Program, with work to start as resources become available from 2023 onwards:

(a)        IPSAS 21, Impairment of Non-Cash Generating Assets;

(b)        IPSAS 31, Intangible Assets;

(c)        IPSAS 33, First Time Adoption of Accrual Basis IPSASs; and

(d)        Practice Statement: Making Materiality Judgements.

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 governments of Canada and New Zealand. 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.

The International Public Sector Accounting Standards Board^® (IPSASB^®) has released a Consultation Paper (CP), Natural Resources, which considers the issues relating to the recognition, measurement, and presentation of natural resources by public sector entities.

Natural resources are generally understood to be resources such as sunlight, air, water and land that exist without the actions of humankind. They account for a significant proportion of the economic resources in many jurisdictions. However, governments often lack sufficient information on the monetary value of natural resources, and as a result, grant rights to these resources without regard to financial and environmental sustainability, or intergenerational fairness.

Currently, there is no explicit International Public Sector Accounting Standard (IPSAS™) guidance on accounting for natural resources in their original state. The IPSASB is now working to address this gap. The first phase of its work focuses on the financial reporting of tangible, naturally occurring resources, including subsoil resources, water, and living resources, which are in their natural state. This consultation paper is the first project output, and considers whether natural resources can be recognized as assets in general purpose financial statements or should be disclosed in broader financial reports.

“The issue of accounting for natural resources is important for the public sector in most jurisdictions. The recognition and measurement of natural resources impacts not only on financial reporting, but also potentially for many governments on policy decisions and public financial management.” said IPSASB Chair Ian Carruthers. “This consultation paper is the IPSASB’s first step in developing guidance for this important area.”

The IPSASB welcomes comments on all the matters discussed in this Consultation Paper by October 17, 2022. Feedback on the CP will guide the IPSASB in determining the approach to developing an Exposure Draft on the topic which will in turn shape a final IPSAS related to Natural Resources.

How to Comment

To access the Consultation Paper, Natural Resources, or to submit a comment, visit the IPSASB website. The IPSASB encourages IFAC members, associates, and Network Partners to promote the availability of this Consultation Paper 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 governments of Canada and New Zealand. 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.

The International Auditing and Assurance Standards Board (IAASB) today released non-authoritative guidance, The Fraud Lens – Interactions Between ISA 240 and Other ISAs. The guidance illustrates the relationship and linkages between International Standard on Auditing (ISA) 240, The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements, and other ISAs when planning and performing an audit engagement and reporting thereon.

The IAASB recently approved a project proposal to revise ISA 240 to enhance or clarify an auditor’s responsibilities on fraud in an audit of financial statements. In the interim, this non-authoritative guidance illustrates how extant ISA 240 is to be applied in conjunction with the full suite of ISAs. As part of the project, additional non-authoritative guidance may be developed to further support the implementation and application of the proposed revised standard, once developed.

To help users of its standards adapt to the clarified and updated definition of “engagement team”, the International Auditing and Assurance Standards Board (IAASB) has released a new fact sheet. The new fact sheet addresses the clarified definition and its possible impacts, including recognition that engagement teams may be organized in a variety of ways, including across different locations or by the activity they are performing. The fact sheet also includes a diagram that walks users through who specifically is included and excluded.

This new engagement team definition applies to the International Standards on Auditing and International Standards on Quality Management. 

The International Public Sector Accounting Standards Board^® has issued International Public Sector Accounting Standard^® (IPSAS^®) 44, Non-current Assets Held for Sale and Discontinued Operations.

IPSAS 44 is based on International Financial Reporting Standard (IFRS^®) 5, Non-current Assets Held for Sale and Discontinued Operations. The new IPSAS specifies the accounting for assets held for sale and the presentation and disclosure of discontinued operations. IPSAS 44 includes additional public sector requirements, in particular, the disclosure of the fair value of assets held for sale that are measured at their carrying amounts, when the carrying amount is materially lower than their fair value.

“This standard fills a gap in the IPSAS suite by providing guidance on how to account for public sector assets that are held for sale on commercial terms,” said IPSASB Chair Ian Carruthers. “Adding guidance on this topic is important from a public interest perspective, as it ensures transparency and accountability when decisions to sell public sector assets have been taken.”

IPSAS 44 has an effective date of January 1, 2025. Earlier application is permitted.

How to Access

To access IPSAS 44, Non-current Assets Held for Sale and Discontinued Operations and its summary At-a-Glance document visit the IPSASB website. The IPSASB encourages IFAC members, associates, and Network Partners to promote the availability of IPSAS 44, Non-current Assets Held for Sale and Discontinued Operations 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 governments of Canada and New Zealand. 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.