IASB News

First Taxonomy for Filing Digital Reports on Climate, Sustainability Issues Published.

The International Sustainability Standards Board (ISSB) has published its first taxonomy for tagging sustainability-related information in financial reports filed in accordance with international financial reporting standards (IFRS). IFRS Sustainability Disclosure Taxonomy 2024 was issued to help investors analyze sustainability disclosure efficiently, the board said. The taxonomy includes elements for tagging IFRS S1, General Requirements for Disclosure of Sustainability-related Financial Information, and IFRS S2, Climate-related Disclosures, and related materials—coming four months after those rules took effect. S1 provides a baseline of general guidelines for disclosing information about sustainability risks and opportunities, and S2 addresses the disclosure of potential risks of changes in climate. The ISSB’s taxonomy can also be used with other digital taxonomies, Chair Emmanuel Faber said in a statement. The board has “taken steps to ensure the ISSB Taxonomy can help facilitate interoperability with other taxonomies when necessary—for example, to facilitate interoperability with the taxonomy being developed by EFRAG—enabling all companies and investors to immediately more effectively identify disclosures required by the ISSB,” he said. EFRAG, the European Financial Reporting Advisory Group, is a group that ensures IFRSs are responsive to the needs and concerns of Europe. The sustainability taxonomy was designed to be consistent with the IFRS Accounting Taxonomy so that companies can provide a holistic digital financial reporting package to investors, according to a related report via webcast. Both taxonomies reflect the requirements of the accounting and disclosure rules but do not change those rules.

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FASB News

Trustees to Hold Oversight, Quarterly Meetings

Trustees of the nation’s two accounting rulemaking boards have scheduled quarterly and oversight meetings for late May in Washington, D.C., according to April 26 announcements. The Financial Accounting Foundation’s (FAF) Oversight Committee will meet on May 21 at The Willard Hotel, 1401 Pennsylvania Avenue NW, in closed sessions from 8:00 a.m. to 9:25 a.m., and from 11:10 a.m. to 11:45 a.m., the organization said. The meeting will be open to the public on a livestream from roughly 9:40 a.m. to 11:05 a.m. The meeting will cover the standards-setting activities of FASB, GASB, and FASB’s Private Company Council (PCC). Discussions typically include questions from the Oversight Committee. Separately, on May 22, the FAF’s Board of Trustees will hold a quarterly meeting at the same D.C. location, in closed sessions from 8:00 a.m. to 12:05 p.m. and from 2:00 p.m. to 3:30 p.m. The meeting will be opened briefly to the public from about 1:05 p.m. to 1:50 p.m. The agenda will include brief reports from chairs of the FAF, FASB, PCC, GASB, GASAC, the Oversight Committee, plus the FAF Executive Director and Treasurer.

AICPA News

AICPA Poised to Finalize Quality Management Attestation Standards

The AICPA’s Auditing Standards Board (ASB) will vote on final quality management (QM) attestation standards during a meeting to be held in Washington on May 14–15. The board issued an exposure draft in August 2023 hoping to align certain concepts in attestation standards with the quality management standards issued in June 2022. The proposed revisions to Statements on Standards for Attestation Engagements (SSAE) primarily include amendments to AT-C section 105, Concepts Common to All Attestation Engagements, and to the documentation requirements in AT-C section 205, Assertion-Based Examination Engagements, AT-C section 210, Review Engagements, and AT-C section 215, Agreed-Upon Procedures Engagements, according to a discussion paper prepared ahead of the meeting. If adopted, the final standard would be SSAE 23, Amendments to the Attestation Standards for Consistency With the Issuance of AICPA Standards on Quality Management. The most significant change that would be introduced by SSAE 23 is the deletion of the defined term “other practitioner’ and its replacement with two new terms: ”participating practitioner” and “referred-to practitioner.” “The revision is intended to differentiate the requirements related to other practitioners who are part of the engagement team (participating practitioner) and those that are not part of the engagement team (referred-to practitioner),” the discussion paper explains. “The performance and reporting requirements are also revised to differentiate between the types of other practitioner.”