Consultation on Global Sustainability Standards Initiated by IESBA Opens

The International Ethics Standards Board for Accountants (IESBA) and the International Auditing and Assurance Standards Board (IAASB) jointly released two exposure drafts (EDs) aiming to enhance trust in sustainability reporting. The drafts propose a consistent ethical approach to mitigate greenwashing and improve reporting quality. The first ED outlines behaviours and ethics provisions for sustainability assurance practitioners, while the second suggests an ethical framework for evaluating external experts. Feedback on the drafts is sought by April 30 and May 10.

The International Public Sector Accounting Standards Board (IPSASB) issued two EDs on accounting for natural resources. ED 86 addresses mineral resource exploration, aligning with private sector requirements. ED 87 proposes IPSAS 12 amendments, clarifying costs capitalization or expense in surface mine production. Comments are due by May 31.

In the UK, the Financial Reporting Council (FRC) released guidance on applying revisions to its Corporate Governance Code. The guidance covers board leadership, responsibilities, composition, audit, risk, internal controls, remuneration, and good practices for board committees.

The FRC also addressed barriers to competition in the audit market, identifying capacity constraints, recruitment challenges, and regulatory requirements as hindrances for smaller audit firms. The report encourages a collaborative approach involving regulators, audit firms, professional bodies, and the government to promote competition and support staff within audit firms.