At-A-Glance

COVID-19 Related

International

IASB – International Accounting Standards Board (www.ifrs.org)

• Coronavirus Information and resources – link –
  https://www.ifrs.org/news-and-events/2020/03/the-coronavirus-and-the-foundations-work/ 

IFAC – International Federation of Accountants (www.ifac.org)

1. COVID-19 Resources from IFAC's Network – link -
   https://www.ifac.org/knowledge-gateway/series/COVID-19-resources-ifacs-network

ACCA – Association of Chartered Certified Accountants (www.accaglobal.com)

• Coronavirus Information and resources – link -
  https://www.accaglobal.com/us/en/cam/coronavirus.html

• Global economic conditions survey: Q2 2021, report published July 13, 2021. “Professional accountants have reported a buoyant return to economic stability in Q2 2021…Over 1,100 global respondents, who are members of ACCA and IMA, report an upturn in key global activity indicators, such as orders – the proxy for real economic activity. The biggest gain in Q2 came in North America, powered ahead by a massive US fiscal stimulus. The two ‘fear’ indices – measured by concerns that customers and suppliers may go out of business – both declined in this latest survey, confirming that the extreme uncertainty created by the Covid-19 crisis has fallen back towards more normal levels. However, despite this optimism, stark warning signs remain due to wide regional variations in confidence, with large increases across Europe, contrasting with significant falls in Asia Pacific and South Asia.”

CIMA – Chartered Institute of Management Accountants (www.cimaglobal.com)

1. Update on the Coronavirus and Impact for Association Activities – link -
   https://www.cimaglobal.com/Members/Update-on-Coronavirus/

VRF- The Value Reporting Foundation (www.thevrf.org)

1. The Value Reporting Foundation is the result of the merger of the International Integrated Reporting Council and the Sustainability Accounting Standards Board on June 9, 2021.
   

World Economic Forum – (www.weforum.org)

1. The COVID Action Platform – link - https://www.weforum.org/platforms/covid-action-platform - focuses on three priorities: 1. Galvanize the global business community for collective action. 2. Protect people’s livelihoods and facilitate business continuity. 3. Mobilize cooperation and business support for the COVID-19 response.

Africa, Europe, India, and the Middle East (AEIME)

• FRC guidance for companies and auditors during COVID-19 crisis – link - https://www.frc.org.uk/covid-19-guidance-and-advice.

1. Coronavirus – updates – link - https://www.icaew.com/insights/coronavirus.

1. No new developments

Americas, Asia, Australia and New Zealand (AAANZ)

1. AICPA Coronavirus (COVID-19) Resource Center – link - https://www.aicpa.org/news/aicpa-coronavirus-resource-center.html

1. FASB Response to COVID-19 – link - https://www.fasb.org/COVID19

1. GASB Response to COVID-19 – link -  https://www.gasb.org/COVID19

• No new developments

1. PCAOB Response to COVID-19 – link -  https://pcaobus.org/Pages/response-to-COVID-19.aspx

1. See The Value Reporting Foundation above.

1. SEC Coronavirus (COVID-19) Response – link - https://www.sec.gov/sec-coronavirus-COVID-19-response
   

1. Financial Reporting and Audit Guide: Financial reporting and audit issues stemming from COVID-19 – link - https://www.charteredaccountantsanz.com/tools-and-resources/client-service-essentials/reporting/financial-reporting-and-audit-guide-financial-reporting-and-audit-issues-stemming-from-covid19

Other Updates

• Exposure Draft - Initial Application of IFRS 17 and IFRS 9—Comparative Information, issued July 28, 2021. Narrow scope amendment to facilitate initial application. Comment period ends September 27, 2021.

• Exposure Draft - Subsidiaries without Public Accountability: Disclosures, issued July 26, 2021. “The proposals would save subsidiaries time and money by: eliminating the need to maintain an additional set of accounting records for reporting purposes—if the subsidiary currently does not apply IFRS Standards in its own financial statements; and reducing the disclosures required to comply with IFRS Standards.” The comment period ends January 31, 2022.

• Exposure Draft - Disclosure Requirements in IFRS Standards—A Pilot Approach, comment period extended to January 22, 2022. “The unusually long comment period is because of the unique nature of, and significant new thinking in, the proposals. In particular, it will allow more time for preparers to engage in fieldwork and provide feedback on the practical application of the proposals.”

• The International Ethics Standards Board for Accountants (IESBA) - Exposure Draft - Proposed Quality Management-related Conforming Amendments to the Code, issued August 5, 2021, “to align the Code with the International Auditing and Assurance Standards Board's (IAASB's) suite of quality management standards, especially ISQM 1 and ISQM 2, through conforming amendments so that the Code is consistent and interoperable with these IAASB standards.” The comment period ends October 5, 2021.

• International Auditing and Assurance Standards Board (IAASB) – Exposure Draft - Proposed International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE), issued July 23, 2021, “to provide a globally consistent approach at a time where a number of jurisdictional-specific less complex entity standards are emerging, which is not in the public interest.” Comment period ends January 31, 2022.

• Greater Transparency and Accountability in the Public Sector, point of view document published July 19, 2021, “explores the need for strong governance and public financial management (PFM), so that governments and public sector entities around the world can make informed, data-driven decisions for people, the planet, and the economy. It also outlines how the accountancy profession, with its public interest mandate, can support the public sector in achieving long-term financial sustainability and resilience, to help create a better world with stronger economies and fairer societies.”

• The Next Normal: Preparing for a Post-Pandemic Fraud Landscape, report published June 21, 2021. See article in this issue for details.

• Coding: as a professional accountant, why you should be interested, briefing report published July 26, 2021, “explains why professional accountants should be aware of and interested in coding, which is a task most associated with developing solutions using technology. This is done in a programming language, of which there are many types – some in machine code and others very much like natural language, the latter being the focus of the paper…The paper contextualises coding to the accountancy environment, with an explanation of the benefits and barriers typically faced, and a case study on how it fits into the wider eco-system of skills relevant to the professional accountant.”
  

• No new developments

VRF -  The Value Reporting Foundation (www.thevrf.org)

• No new developments

• No new developments

Africa, Europe, India, and the Middle East (AEIME)

• Audit Firm Culture: Challenge. Trust. Transformation, summary document published August 6, 2021, highlighted “the link between culture and high-quality audit…explored the following themes: Building an audit firm culture that supports high quality audit; The role of the audit committee; The importance of a culture of challenge; Embedding and measuring organisational culture; [and] Audit firm culture, audit quality and the role of the regulator.”

• Reporting on stakeholders, decisions and Section 172, report published July 19, 2021, by the FRC Lab. “The report highlights that information on stakeholders and on decisions can help investors understand how a company is progressing in fulfilling its purpose and achieving long-term success. Section 172 statements can then be a helpful bridge between the two types of information.”

• International Standards on Quality Management (UK) 1 and 2 - Quality Management For Firms That Perform Audits Or Reviews Of Financial Statements, Or Other Assurance Or Related Services Engagements, and International Standard on Auditing (UK) 220 (Revised July 2021) Quality Control For An Audit Of Financial Statements, issued July 9, 2021. “These standards introduce a new quality management approach that is focused on proactively identifying and responding to risks to quality. This new approach requires a firm to customise the design, implementation and operation of its system of quality management based on the nature and circumstances of the firm, using an integrated approach that reflects upon the quality management system as a whole.” Effective generally in 2023 with early adoption strongly encouraged.

• FRC Statement of Intent on Environmental, Social and Governance challenges, paper published July 7, 2021, “sets out areas in which there are issues with ESG information if companies are to report in a way that meets the demands of stakeholders, how to address some of these demands and the FRC’s planned activities in this area.”
   

• No new developments

EC - European Commission (www.ec.europa.eu)

• No new developments

• No new developments

Americas, Asia, Australia and New Zealand (AAANZ)

1. No new developments.

FASB – Financial Accounting Standards Board (www.fasb.org)

• Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services— Investment Companies (Topic 946) - Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants, an Amendment of the FASB Accounting Standards Codification, ASU 2021-06, issued August 5, 2021. “This maintenance update includes non-substantive corrections to various Codification Topics and content.”

• Leases (Topic 842) Lessors—Certain Leases with Variable Lease Payments, an Amendment of the FASB Accounting Standards Codification, ASU 2021-05, issued July 19, 2021. “A lessor is now required to classify and account for a lease with variable payments as an operating lease if (a) the lease would have been classified as a sales-type lease or a direct financing lease and (b) the lessor would have otherwise recognized a day-one loss. A day-one loss or profit is not recognized under operating lease accounting. The resulting financial reporting is expected to more faithfully represent the economics underlying the lease and improve the decision usefulness of information provided to the users of financial statements.” Effective generally in 2022.

GASB – Governmental Accounting Standards Board (www.gasb.org)

• Exposure Draft - Proposed Statement of the Governmental Accounting Standards Board Omnibus 20XX, issued July 19, 2021, “addressing various accounting and financial reporting issues identified during the implementation and application of certain GASB pronouncements or during the due process on other pronouncements.” Comment period ends September 17, 2021.

• Revised Exposure Draft - Proposed Statement of the Governmental Accounting Standards Board on concepts related to Communication Methods in General Purpose External Financial Reports That Contain Basic Financial Statements: Notes to Financial Statements an amendment of GASB Concepts Statement No. 3, issued July 20, 2021, “to guide the Board when establishing note disclosure requirements for state and local governments.” Comment period ends October 15, 2021.

• Enterprise Risk Management for Cloud Computing, guidance issued July 28, 2021, in collaboration with Crowe LLP, “provides a roadmap for establishing cloud computing governance leveraging the principles of COSO’s Enterprise Risk Management (ERM) – Integrating with Strategy and Performance framework (2017).”

• No new developments

SEC  – Securities and Exchange Commission (www.sec.gov)

• No new developments