Changes in key terminology, including a revised definition of the term “assurance client”;
Enhanced and clarified independence requirements for attestation engagements;
Clarification of the types of assurance engagement addressed in Part 4B; and
Simplified guidance on assurance engagements that refer to the definitive source of explanatory material on such engagements in IAASB literature.
The proposals were developed in close cooperation with representatives of the IAASB, as part of the coordination program of the two standard-setting boards.
Comments on the Exposure Draft are requested by June 26, 2019 from all stakeholders.
The IESBA believes a single set of high-quality ethics standards enhances the quality and consistency of services provided by professional accountants, thus contributing to public trust and confidence in the accountancy profession. The IESBA sets its standards in the public interest with advice from the IESBA Consultative Advisory Group (CAG) and under the oversight of the Public Interest Oversight Board (PIOB).
About IFAC IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.
To Reflect Terms and Concepts Used in ISAE 3000 (Revised)
This exposure draft seeks views from practitioners and other stakeholders in relation to proposed revisions to Part 4B of the revised and restructured International Code of Ethics for Professional Accountants (including International Independence Standards) to reflect terms and concepts used in International Standard on Assurance Engagements 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information.
In this second of a two part series, IAESB member Isaac Njuguna discusses some of the best practices IFAC member organizations are using to implement IES 4 on professional values, ethics and attitudes.
In this first of a two part series, IAESB member Isaac Njuguna discusses some of the challenges that IFAC member organizations have overcome in implementing International Education Standard 4 on professional values, ethics and attitudes.
In the third of a three part video series, IAESB technical advisors discuss implications and priorities for IFAC member organizations and professional accountants in business stemming from the new International Education Standard 7 on continuing professional development.
The IPSASB held its first meeting of 2019 from March 12-15, 2019 in Washington, D.C., USA.
Measurement
The IPSASB unanimously approved the Consultation Paper (CP), Measurement, which will be published in April 2019, and will be open for comment until September 30, 2019. The Consultation Paper includes an illustrative Exposure Draft (ED) which indicates the IPSASB’s current thinking on the scope and format of an IPSAS on Measurement. A full ED will be issued in due course.
Please register on the IPSASB website to ensure that you receive updates when this document and others are published: https://www.ifac.org/user/register
The IPSASB reopened discussions on the Heritage project. The IPSASB considered the background to the project and the issues that had been raised by respondents to the 2017 Consultation Paper, Financial Reporting for Heritage. The project will focus on recognition, with measurement issues being considered in the complementary project on Measurement.
The IPSASB adopted the working title Revenue from Performance Obligations, for the ED and tentatively approved it. The IPSASB clarified that the scope applies to binding arrangements with purchasers that include performance obligations. The IPSASB instructed staff to consider the approach to transactions where the collectability of consideration is not probable. Staff will continue work on non-authoritative illustrative examples to ensure that these are suitable for the public sector.
Revenue - Enforceability and Performance Obligations
In the context of public sector-specific transactions, the IPSASB confirmed that legislation and reductions in future funding are the two enforcement mechanisms to be included in the ED, Revenue from Performance Obligations. The IPSASB also noted that enforceability in a binding arrangement is a two-way relationship. In a revenue context, enforcement mechanisms relate to the purchaser’s ability to enforce the fulfilment of performance obligations by the resource recipient. The IPSASB instructed staff to consider alternative terms for ‘distinct’ in articulating the concepts of ‘distinct goods and services’ and ‘distinct promises’ for performance obligations.
Revenue - Update of IPSAS 23, Revenue from Non-Exchange Transactions (Taxes and Transfers)
The IPSASB considered the scope of the draft ED, Grants, Contributions and Other Transfers. The IPSASB tentatively agreed to adopt a narrower scope for the project, excluding commercial transactions. Staff were instructed to develop definitions for the transactions within this revised scope, and to consider the accounting treatment of contracts that are described as grants. Recognition, measurement and presentation requirements will be developed in parallel with the two Revenue EDs highlighted above.
The IPSASB further considered its approach in light of the response to ED 64, Leases. The IPSASB directed the Leases Task Force to firstly assess the rationale for departing from the lessor accounting requirements in IFRS 16, Leases. The IPSASB will not consider the approach to concessionary leases until decisions have been made on lessor accounting. The Task Force will make recommendations to the IPSASB for consideration at the June 2019 meeting.
The IPSASB reviewed the IPSAS-IFRS Alignment Dashboard, which reflects the extent of alignment with current International Financial Reporting Standards and identifies pronouncements that are public sector specific. The IPSASB directed some minor presentational changes.
Strategy and Work Plan 2019-2023. Delivering Global Standards. Inspiring Implementation.
The IPSASB published its Strategy and Work Plan 2019-2023 in late February. At a time of increasing momentum for IPSAS adoption and implementation globally, the Strategy and Work Plan 2019-2023 sets out the Board's work intentions and priorities for the next five years.
A podcast highlighting key points of the March 2019 meeting is now available here.
Next Meeting
The next meeting of the IPSASB will be in Toronto, Canada from June 18-21, 2019. The IPSASB Consultative Advisory Group will meet on June 17, 2019 Toronto, Canada. For more information, or to register as an observer, visit the IPSASB website (www.ipsasb.org).
