Newswire February 2025

AUDIT & ACCOUNTING

FRC launches campaign to support UK SMEs to grow and scale

The Financial Reporting Council (FRC) has https://www.frc.org.uk/news-and-events/news/2025/01/frc-launches-campaign-to-support-uk-smes-to-grow-and-scale/commenced a year-long campaign to help small and medium-sized enterprises (SMEs) access audit services and address the reporting challenges they face. The initiative in turn aims to improve their access to capital and to support their growth ambitions.

As part of the first phase of this campaign the FRC has launched a market study examining how effectively the audit market serves  SMEs and exploring opportunities to reduce their reporting burden where possible.

FRC publishes Thematic Review of Climate-related Financial Disclosures by AIM and Large Private Companies

The FRC has published a thematic review of Climate-related Financial Disclosures (CFD) by AIM and large private companies, following the first cycle of mandatory reporting. CFD requirements were introduced for accounting periods beginning on or after 6 April 2022 and require companies to report on climate-related risks and opportunities if they have over 500 employees and are:

• traded, banking, insurance or AIM companies; or
• private companies or Limited Liability Partnerships, with turnover exceeding £500 million.

Unsurprisingly the review highlights several areas where disclosures commonly require improvement in what is a developing area of reporting.

UKEB publishes 2025 IFRS Standards

The UKEB has published the 2025 consolidated UK-adopted international accounting standards on behalf of the UK Government. The UKEB website contains links to the text of individual UK-adopted international accounting standards.

SUSTAINABILITY ASSURANCE

IESBA welcomes certification of its Global Ethics Sustainability Standards by PIOB and IOSCO Statement of Support

The International Ethics Standards Board for Accountants (IESBA) welcomes the Public Interest Oversight Board’s (PIOB) decision to certify its Global Ethics Sustainability Standards and the International Organization of Securities Commissions (IOSCO) Statement of Support calling on its members to apply or be informed by the new framework.

The Global Ethics Sustainability Standards include the International Ethics Standards for Sustainability Assurance (including International Independence Standards) (IESSA) and the revisions to the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) related to sustainability reporting and to the use of the work of an external expert.

IAASB releases new guidance on ISSA 5000

To support practitioners, the International Auditing and Assurance Standards Board (IAASB) has released new guidance on the International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, including an implementation guide, fact sheet, FAQs, and FAQ video series.

FRC sets out recommendations for the sustainability assurance market

The FRC has published the final report from its market study into the assurance of sustainability reporting. The 2024 study found that while the UK’s market for the assurance of sustainability reporting is functioning well, there are concerns over quality consistency amid growing demand.

CHARITIES

FRC webinar covers how charities can prepare for major amendments to FRS 102

On 15 January 2025, the FRC hosted a webinar to discuss how the recent amendments to FRS 102 will impact UK charities and the ways they can prepare for implementation.

If you missed the webinar, you can watch the recording here.

TAXATION