Two new exposure drafts (EDs) from the International Ethics Standards Board for Accountants (IESBA) aim to foster greater trust in publicly communicated sustainability information through the application of a consistent ethical approach, a news release said. The development of both drafts was closely coordinated with the International Auditing and Assurance Standards Board (IAASB).
"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 release said.
The first ED "proposes a clear framework of expected behaviours and ethics provisions for use by all sustainability assurance practitioners", the release said. The second proposes an ethical framework to guide professional accountants or sustainability assurance practitioners in evaluating the suitability of external experts.
The IESBA invites feedback by 30 April for the external expert draft and by 10 May for the sustainability draft.
IPSASB releases EDs on accounting for nature
The International Public Sector Accounting Standards Board (IPSASB) has issued two EDs on accounting for natural resources, a news release said. The project looks to continue the development of principles for the recognition and measurement of natural resources, due to concern around the lack of guidance on specific activities related to mineral resources.
ED 86, Exploration for and Evaluation of Mineral Resources, proposes "a standard on accounting for the costs incurred in the exploration and evaluation of mineral resources … aligned with the private sector requirements in IFRS 6, Exploration for and Evaluation of Mineral Resources, with limited changes for the public sector context", the release said.
ED 87, Stripping costs in the Production Phase of a Surface Mine, proposes "adding an authoritative appendix to IPSAS 12, Inventories … [to clarify] when to capitalise or expense costs incurred to remove waste material in surface mining operations", the release said.
Comments on ED 86 and 87 are requested by 31 May.
FRC publishes guidance on Corporate Governance Code revisions
After recent revisions to its Corporate Governance Code, the UK's Financial Reporting Council (FRC) published targeted and digitally accessible guidance to support companies applying the revisions.
The guidance focuses on, according to a news release:
Board leadership and company purpose;
Division of responsibilities;
Composition, succession, and evaluation;
Audit, risk, and internal controls; and
Remuneration.
A new section covers good practice for the successful management of board committees, the release said.
FRC address systemic barriers to competition in the audit market
The FRC has published a summary of key findings and potential actions into barriers to entry and growth faced by audit firms in the UK, a news release said. Highlighting "capacity constraints, recruitment and retention challenges, alongside regulatory requirements", as the main obstacles for smaller firms looking to expand their presence.
To promote greater competition and choice in the audit market, the FRC has highlighted, in its report, the importance of a collaborative, cross-system approach involving the regulator, audit firms, professional accounting bodies, and government, the release said.
"Audit firms are encouraged to prioritise cultures that better support their staff, including training and resources, while professional accounting bodies should continue efforts to attract new talent into the profession and maintain high auditing standards," the release said.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.