The International Ethics Standards Board for Accountants (IESBA) held a "hybrid" meeting (virtually and in-person) on March 14-16, 2022. Selected highlights of the meeting follow:
Rollout of Revised Public Interest Entity (PIE) Definition
The PIE Rollout Working Group was formed to raise awareness and promote the adoption and implementation of the revised definitions of listed entity and PIE and related provisions in the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code), which will become effective for audits of financial statements for periods beginning on or after December 15, 2024.
Benchmarking International Independence Standards to US (SEC and PCAOB) Regulations
The IESBA reviewed a near-final draft of a report that benchmarks the International Independence Standards (IIS) against the independence rules and standards of the US Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Board (PCAOB). The final report and related summary is expected by May 2022.
Tax Planning & Related Services
The IESBA's Tax Planning Task Force proposed an approach for developing a "response framework" to guide professional accountants (PAs) involved in tax planning, including, for example:
- how to approach tax matters falling into the “gray zone”
- fundamental principles impacted when PAs operate in the gray zone
- potential indicators of and terminology describing the gray zone
The IESBA will hold three global virtual roundtables to obtain stakeholder feedback on the issues and preliminary thinking on the response framework. (Click here to learn more about the roundtables.)
Emerging Issues and Outreach Committee (EIOC) Recommendations for Sustainability / ESG
On the recommendation of the Emerging Issues and Outreach Committee (EIOC), the IESBA agreed to establish a new Sustainability Working Group to progress the IESBA’s activities in relation to sustainability reporting and assurance. Among other matters, the new Working Group will:
- Engage in fact finding
- Advise IESBA Staff on the development of guidance to highlight existing provisions in the Code that are relevant to sustainability reporting and assurance
- Review the Code to identify potential areas for enhancement in terms of sustainability reporting and assurance
Ms. Kris Nathanail-Brighton, Senior Policy Advisor of the International Organization of Securities Commissions (IOSCO), provided the board a briefing on the progress of IOSCO’s work on Sustainable Finance.
IESBA Strategy and Work Plan Survey
The IESBA approved a strategy survey for purposes of developing its Strategy and Work Plan (SWP) 2024-2027. IESBA expects to issue the SWP by mid-April 2022 with a public comment period of at least 75 days.
The IESBA’s next meeting is scheduled for June 6-8, 2022, which is planned in a hybrid format.
For more information, see the IESBA's web site.