The European Accounting Association Accountancy Europe presented its comments in response to the European Commission's proposals for a new Corporate Sustainability Reporting Directive (CSRD) published in April. The intention of the European Commission to extend it to all large and listed companies has received a positive response, as they can clearly be attributed to those whose impact on the environment and society may be significant. At the same time, the climate problem is acute, and the transition to a low-carbon economy requires a fundamental restructuring of corporate policy and business processes.

Recent data from the UK Financial Reporting Council (FRC) shows that the share of small players is gradually increasing in the audit market among the FTSE 250: it has grown from 4.8 to 7.6%. However, if you take the segment of the largest customers of the FTSE 100, then it is still zero, because such company entrust their audit only to “Big Four” firms.

A joint report by ACCA and the University of Glasgow on Software Development Costs (SDC) was recently published. It turns out that, on average, only half of the surveyed financial statements of companies from around the world recognize these costs as intangible assets. Professor Ioannis Tsalavoutas from the University of Glasgow has clarified that as a sample they looked at IFRS financial statements of companies from 39 countries for the period of 2015-2019.

Paul Ash, FCMA, CGMA, has been elected the 6th chair of AICPA and CIMA, the Association that represents 696 thousand members, students and engaged professionals in management and public accounting across 192 countries. He has been also elected the 88th president of CIMA (the United Kingdom).

The UK Financial Reporting Council (FRC) has published a Statement of Intent on Environmental, Social and Governance challenges, which discusses the problematic areas of expanded disclosure, which does not yet satisfy the requests of its users. Next, regulators talk about what they intend to do in this regard for regulation.

The European Commission sets new sustainable finance goals. And as always, when the issue of European financial stability is raised, the relevant messages to the European Parliament, the Council of Europe and other senior EU bodies are not without mentioning international financial reporting standards and their impact on sustainability.

Following management approval in late May, the International Accounting Standards Board’s technical staff has begun writing narrow-scope amendments to IFRS 17 Insurance Contracts to address accounting inconsistencies in the simultaneous application of IFRS 9 Financial Instruments.

The International Organization of Securities Commissions (IOSCO) presented a report in which it shared its expectations of the future work of the IFRS Foundation in the context of international sustainability reporting standards with an emphasis on the investors needs. The report was prepared by the Sustainable Finance Taskforce, a part of the IOSCO, whose members reiterated the urgent need to ensure consistency in the sustainability-related disclosures, their compatibility and reliability.

The Auditing Standards Board of the American Institute of Certified Public Accountants (AICPA) has issued new guidance that takes into account the effect of recent changes in the Statement on Standards for Attestation Engagements. The topic is agreed-upon procedures related to assets- backed securities that are part of a comprehensive due diligence.

Analysis of the integrated reports of 14 companies – members of the International of Integrated Reporting Council (IIRC) for 2019-2020 has showed that integrated thinking provides new opportunities to define the company's purpose and understand enterprise value creation. However, the constant development of norms and standards makes the process of writing reports more difficult. This is stated in the study “Invisible threads: communicating integrated thinking”, conducted by ACCA – a global professional association that brings together professionals in the field of finance, audit and accounting.