Global Financial Insights is a weekly feature for the Accounts and Audit Module subscribers of Taxmann.com. It provides you with the latest updates on financial reporting and auditing practices from across the globe. Here is this week’s financial update:
1. IFRS Foundation Revises Due Process Handbook to Align IASB and ISSB Standard-Setting Processes
The IFRS Foundation Trustees have issued a revised Due Process Handbook that outlines the procedures to be followed by the IASB and the ISSB in developing, amending, and maintaining Standards.
The revisions primarily reflect the establishment of the ISSB and clarify that both the IASB and ISSB follow the same rigorous, transparent, and inclusive due process framework.
The updated Handbook also incorporates stakeholder feedback received during the public consultation process and includes enhancements relating to:
- Post-implementation reviews of the Standard
- The role of the IFRS Interpretations Committee
- Consultation procedures for minor amendments
- Review processes for educational materials
Importantly, the Handbook now formally sets out the due process for amendments to SASB Standards, which entities are required to consider while applying ISSB Standards. Such amendments will be subject to public consultation and deliberation in ISSB public meetings.
Source – The International Financial Reporting Standards
2. FRC Issues Final Revisions to UK Auditing Standards on Fraud and Going Concern
The Financial Reporting Council (FRC) has published final revisions to:
- ISA (UK) 240, The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements
- ISA (UK) 570, Going Concern
The revisions follow public consultation and align UK auditing requirements with the latest amendments issued by the IAASB to the corresponding international standards.
Key highlights include:
- Enhanced auditor responsibilities relating to fraud risk assessment.
- Greater transparency in audit reporting, particularly for publicly traded entities.
- Strengthened guidance on evaluating and reporting going concern assumptions.
- Incorporation of lessons from recent corporate failures and evolving stakeholder expectations.
The FRC noted that many of these enhanced requirements were already reflected in UK practice, as the UK standards had been updated ahead of the international revisions. Accordingly, only a limited additional implementation effort is expected for auditors.
The revised standards will be effective for audits of financial statements for periods beginning on or after 15 December 2026.
Source – Financial Reporting Council
Click Here To Read The Full Article
The post [Global Financial Insights] IFRS Foundation Revises Due Process Handbook and More appeared first on Taxmann Blog.
