Newswire June 2023

AUDIT & ACCOUNTING

FRC publish review of fair value measurement

The Financial Reporting Council (FRC) has published its thematic review of fair value measurement. Although the review focuses on disclosure matters, it includes two case studies to highlight measurement issues the FRC found in its routine monitoring of corporate reporting.

Revisions to proposed International Standard on Auditing (UK) 505

The FRC has published revisions to the proposed International Standard on Auditing (UK) 505 - External Confirmations. The revisions reflect recent enforcement findings as well as ensuring that the standard reflects modern approaches to obtaining confirmations, with additional material on the use of digital platforms, enhanced requirements in relation to investigating exceptions and a prohibition on negative confirmations.

Scalebox launched to promote competition and quality for smaller audit firms

The Financial Reporting Council (FRC) has announced the launch of a new initiative to assist smaller firms in conducting high-quality audits in the Public Interest Entity (PIE) market. The Scalebox initiative aims to promote competition and choice in the PIE audit market and support the FRC's role as an Improvement Regulator.

The FRC supports the publication of the Government’s call for evidence on the Non-Financial Reporting Review

The FRC welcomes the publication of the call for evidence on the Non-Financial Reporting Review, which will look at the framework behind non-financial reporting, and the wider legal landscape in which sustainability disclosures and other planned reforms will be situated. The review will also consider the thresholds used to determine which companies must comply with reporting obligations under the Companies Act 2006.

FRC Launches Consultation on Revision to the Corporate Governance Code

The Financial Reporting Council (FRC) has launched a public consultation on proposed revisions to the UK Corporate Governance Code. This follows the UK Government's response to the White Paper, Restoring Trust in Audit and Corporate Governance, which identified areas of reform related to a particular focus on directors' responsibilities for internal control, risk, audit and corporate reporting.

FRC concludes annual review of FRS 101 Reduced Disclosure Framework

The FRC has issued Amendments to Basis for Conclusions FRS 101 Reduced Disclosure Framework – 2022/23 cycle, which brings to a close the 2022/23 annual review of FRS 101 Reduced Disclosure Framework. No amendments have been made to FRS 101 as a result of this review.

ICAEW Corporate Reporting Faculty issues Factsheet on IFRS 16 – Leases

The IFRS 16 Factsheet issued by the Corporate Reporting Faculty provides an introduction and refresher on the requirements of the standard. This is only available to members of the Faculty.

ICAEW issues Audit News 74

The latest issue of Audit News published by the ICAEW looks at changes under the special entrant route for the Audit Qualification, how firms are implementing ISQM 1, and changes to the UK Audit Regulations. It also includes updates from the Professional Standards Department around CPD and the disciplinary process.

PRACTICE ASSURANCE

ICAEW Technical Advisory Service issues helpsheet on Retiring from Practice

The helpsheet issued by ICAEW assists members in considering the practical and ethical implications of ceasing to practice; be it retiring from practice or closing a practice.

CHARITIES

Charities gain new powers as more legislative changes come into force

New powers from the Charities Act 2022 have now come into effect resulting in changes for the sector. The Charity Commission has updated its existing guidance to reflect these changes, which includes flexibility for trustees when seeking to dispose of charity land and new powers around the use of permanent endowment.