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	ISSUE 4 \| APRIL 2026


	At-A-Glance The subject of assessing business longevity and how to report on sustainability has been gaining in importance over recent years. Various global organizations have weighed in on the issue. Locating and developing accurate and consistent sustainability information can be a challenge. The Association of Chartered Certified Accountants (ACCA) has in recent months published several reports addressing sustainability that will prove helpful in responding to growing requirements. This issue of the Alert highlights the developments. Also, our Worldwide Update covers news from organizations across the globe.


	Gerald Herter - Editor


	Sustainability Working with estimates


	Sustainability reporting standards have been evolving over the last several years. The March 2023 edition of the Audit & Accounting Alert covered the then proposed standards of the newly formed International Sustainability Standards Board (ISSB): These are IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures. These standards became effective January1, 2024. Since then, the ISSB has issued proposed amendments providing guidance for twelve specific industries, as well as to the general areas of (a) greenhouse gas emissions, (b) energy management, (c) water management, (d) labour practices; and (e) workforce health and safety. The first proposed amendment covering nine industries has received almost 250 comments, while the second proposed amendment has a closing date of July 26, 2026. Recognizing the challenges of developing useful sustainability information, ACCA in February 2026, published a report: Sustainability reporting: working with estimates. Since necessary data is not always readily available, the report describes an eight-stage process for determining the needed items: Stage 1 – Allocating responsibility for sustainability reporting Stage 2 – Establishing the reporting landscape Stage 3 – Determining the material sustainability-related information to be reported Stage 4 – Determining the data requirements Stage 5 – Collecting the data Stage 6 – Reporting on the collected data Stage 7 – Enablers: plan, technology, and people Stage 8 – Verification and continued improvement When reaching the middle of the process, the lack or inadequacy of data becomes apparent. Then assumptions must be made using judgments that are updated along the way. The use of estimates and judgments is not new. For example, in evaluating accrued expenses, recorded amounts are derived using various appropriate methods, such as considering past experience and applying the results to current circumstances. As the ACCA report states for sustainability, “qualitative characteristics of useful information…include relevance, faithful representation, comparability, timeliness, verifiability and understandability.” Since the data may not be direct, extra care must be taken to gain satisfaction that these characteristics are valid for the purpose. Also, individuals making the calculations and correlations must have an understanding of the objectives and desired outcomes from using the data. Many of the systems and processes in place were designed and developed before sustainability was a major factor. Going forward, provisions need to be implemented so that the systems and processes are scalable and can be integrated as needed to achieve the desired result. A separate ACCA report, Sustainability-Related Risks and Opportunities (SRROs), will be useful for determining information needed for disclosures. Then a further report, Sustainability reporting: Track your progress, describes ten recommendations based on a survey of over 1,000 respondents from 113 jurisdictions around the world: Move beyond compliance Champion sustainability Prioritise globally relevant standards Leverage regulatory reporting ecosystems Know your business end-to-end Bake sustainability into shareholder management Be proactive Build agile systems focused on the end user Build a flexible resourcing model Collaborate boldly across industries and regions Further details can be found at Sustainability reporting: working with estimates.


	Worldwide Update Periodic roundup of recent and upcoming actions and activities by auditing and accounting organizations throughout the world.


	International IASB – International Accounting Standards Board (www.ifrs.org) Exposure Draft - Proposed amendments to the SASB Standards and IFRS S2 Industry-based Guidance, issued March 26, 2026, “cover the remaining three of the 12 SASB Standards identified by the ISSB as initial priorities for enhancement: Agricultural Products; Meat, Poultry & Dairy; and Electric Utilities & Power Generators” The comment period ends on July 26, 2026. IFAC – International Federation of Accountants (www.ifac.org) Corporate Reporting is Maturing: Capability and Judgment Must Catch Up, published March 19, 2026, “explores why effective sustainability-related reporting depends as much on how organisations think, decide and are governed as on what they disclose.” IFR4NPO - International Financial Reporting for Non-Profit Organisations (www.ifr4npo.org) No new developments. IOSCO – International Organization of Securities Commissions (www.iosco.org) No new developments. ACCA – Association of Chartered Certified Accountants (www.accaglobal.com) Sustainability reporting: working with estimates, policy and insights report issued February 25, 2026, “demonstrates how to use reasonable estimates as a practical way of creating decision-useful sustainability information.” See article in this issue.


	Africa, Europe, India and the Middle East (AEIME) FRC – Financial Reporting Council of the UK (www.frc.org.uk) An evolved audit supervision approach, published March 26, 2026, “sets out the FRC’s revised audit supervision approach, designed to ensure the UK maintains a high-quality, resilient and trusted audit market and profession. It explains how the model has evolved in response to developments in the audit ecosystem, and the feedback the FRC received from extensive engagement during 2025. It outlines how the new approach will work, setting out how the FRC will review each firm’s impact, assess risks and report to the market.” Effective April, 2026. Practice Note 28 - Guidance for audits of small and medium-sized entities, published March 24, 2026, “a package of measures to make audits more proportionate and efficient for small and medium-sized enterprises (SMEs), helping to support their growth and access to capital.” ICAEW - Institute of Chartered Accountants in England and Wales (https://www.icaew.com/) No new developments. EC – European Commission (https://ec.europa.eu/) No new developments. EFRAG – European Financial Reporting Advisory Group (www.efrag.org) No new developments.


	Americas, Asia, Australia and New Zealand (AAANZ) AICPA & CIMA – American Institute of Certified Public Accountants (www.aicpa.org) Enhancing Audit Quality 2025 Highlights Report, published March 12, 2026, “focused on the following areas: Risk assessment, Quality management, Technology-enabled auditing, Single audit, and Emerging attestation engagements. These areas of focus reflect both persistent challenges and evolving risks observed in practice monitoring activities and through engagement with practitioners.” ERISA employee benefit plan financial statement audit special considerations—2026, published January 26, 2026, “to help auditors identify and understand recent legislative, regulatory, and professional developments that may impact the current ERISA employee benefit plan audit season.” FASB – Financial Accounting Standards Board (www.fasb.org) No new developments GASB – Governmental Accounting Standards Board (www.gasb.org) No new developments COSO - The Committee of Sponsoring Organizations of the Treadway Commission (www.coso.org) No new developments PCAOB – Public Company Accounting Oversight Board (www.pcaob.org) No new developments SASB – Sustainability Accounting Standards Board (www.sasb.org) No new developments SEC – Securities and Exchange Commission (www.sec.gov) No new developments


	Additional A&A News The FRC’s "evolution" - A practical pivot or a return to soft regulation? Cash balance momentum could accelerate as FASB reshapes accounting rules Ancient Greece to AI: The past and future of bank fraud ACCA applauds moves to strengthen vital UK small business audit market How agentic AI helps accounting teams plan smarter and forecast better How will accountants learn new skills when AI does the work?


	Audit & Accounting Alert is a publication of Integra International intended to highlight emerging issues in the profession. The goal is to give Integra members an awareness of developments impacting the practice of Audit & Accounting enabling them to stay on the forefront of industry trends.This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice. Editor Gerald E. Herter Email: [email protected] www.Integra-International.net © 2026 Integra International. All Rights Reserved. If you wish to stop receiving email from us, you can simply remove yourself by visiting http://members.integra-international.net/members/EmailOptPreferences.aspx?id=66979517&e=lois.pares@integra-international.net&h=d523ac69369762eb987573d57c33e956f959035d.