The U.S. Governmental Accounting Standards Board (GASB) has proposed to improve accounting and financial reporting requirements for accounting changes and error corrections. The main task is to simplify the reporting of financial information making its more reliable, consistent, relevant and comparable.

In May, the International Accounting Standards Board invites everyone interested to review the effectiveness of the new approach to disclosure requirements in IFRS 13 Fair Value Measurement and IAS 19 Employee Benefits in the fieldwork. As the experience of such ‘field-testing’ of IFRS already exists, and ​​the European Financial Reporting Advisory Group (EFRAG) was positive about the idea, it will study the effectiveness of the March proposals in practice.

The Financial Reporting Council UK (FRC) began revising a national auditing standard similar to ISA 240, The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements last October. This work is currently complete. Given that very limited changes have been made to this standard in the UK for a decade and a half, a revision was indeed necessary. Auditors have long asked for clarification of their responsibilities if they detect fraud in the audited organizations.

Today, cyber-crime is one of the biggest risks for business. By 2021, the estimated cost of tackling this problem has reached $ 6 trillion worldwide. However, despite all this, the ACCA study has showed that not all financial professionals see cyber security as a risk factors, and often the responsibility for it lies solely with IT professionals.

Ahead of the interim reporting for the first quarter of 2021, the UK Financial Reporting Council (FRC) has issued a review containing examples of good practice and highlighting areas where further improvements are required. Among the key areas of reporting that need attention are impairment, going concern assumptions, fair value measurements, accounting of financial instruments, disclosures of significant judgments.

The European Commission has sent a letter to the European Financial Reporting Advisory Group (EFRAG) to begin work on the development of the European sustainability reporting standards, envisioned in the recently presented draft of Corporate Sustainability Reporting Directive (CSRD).

The letter states that due to severe restrictions, work on the standards will have to begin before the official approval of the new EFRAG governance structure, which provides the opportunity to work in this area. Thus, the development of a pan-European system of sustainability reporting standards will begin at least six months before the development of international sustainability reporting standards by the ISSB, a new organization within the IFRS Foundation, that has not yet been officially introduced.

According to IAS Plus, a conference was recently held in Europe (May 6), at which Mairead McGuinness, European Commissioner for Financial Services, Financial Stability and the Capital Markets Union, said that the development of new standards should be on the path to integration of non-financial reporting standards of the European Corporate Reporting Lab into the future system. The European Corporate Reporting Lab operates under the auspices of the same EFRAG, but is in its governance structure, and therefore is not formally the developer of the future system of European standards, which will be responsibility of another group of experts formed last year. However, the European Commissioner proposes work to be based on the progress already made. Here in the EU, the logic of the IFRS Foundation follows, which also has chosen to build upon the already established standards, so as not to have to start working from scratch.

In their letter, the members of the European Commission called the version voiced at the conference by Mairead McGuinness pragmatic, but also noted that the development of European standards will have to be handed over directly to the EFRAG structure at the earliest opportunity. The European Commission even roughly names the dates when, according to their expectations, the first results of the work should be submitted – June 15 next year. However, they should be sent to the European Commission for review no earlier than the European Financial Reporting Advisory Group’s revised governance structure has been fully implemented and in the absence of any objections to it from other regulators.