Newswire May 2025

AUDIT & ACCOUNTING

UKEB adopts amendments to the Classification and Measurement of Financial Instruments (IFRS 9 and IFRS 7)

The UK Endorsement Board (UKEB) has adopted Amendments to IFRS 9 and IFRS 7–Amendments to the Classification and Measurement of Financial Instruments issued by the IASB in May 2024.

The amendments clarify the requirements for:

• The recognition and derecognition of financial assets and financial liabilities;
• The classification requirements for financial assets, particularly those containing contingent features (such as ESG-linked targets), non-recourse features or contractually linked instruments;
• Disclosures related to the amendments to the classification requirements, and also for investments in equity instruments designated at fair value through other comprehensive income.

The Amendments are effective for annual reporting periods beginning on or after 1 January 2026, with early application permitted.

The Companies (Directors’ Remuneration and Audit) (Amendment) Regulations 2025

Regulations came into force on 11 May 2025 which remove certain over-lapping requirements from the directors’ remuneration reporting framework, and also clarify certain powers of the UK audit regulator.

Proposed narrow scope amendments to IAASB standards arising from the IESBA’s Using the Work of an External Expert project

Following the approval of amendments to IESBA’s Code of ethics, the IAASB has requested feedback on proposed narrow scope amendments to its standards, with a view to maintaining interoperability between accounting, assurance and ethical standards issued by the respective bodies.

The targeted amendments focus on the following IAASB standards:

• ISA 620, Using the Work of an Auditor’s Expert;
• ISRE 2400 (Revised), Engagements to Review Historical Financial Statements;
• ISAE 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information; and
• ISRS 4400 (Revised), Agreed-upon Procedures Engagements.

The amendments will not directly affect auditors working under the UK standards, though it is possible that local standards may be adapted based on the findings of the exercise.

The IAASB has called for comments by 24 July 2025.

FRC publishes 2024/25 insights on structured digital reporting

The Financial Reporting Council (FRC) has published its annual review of structured digital reporting, highlighting key areas for improvement in how UK listed companies present their digital annual reports.

The report reveals that, while basic errors identified in previous years have been resolved, companies still face challenges with more complex aspects of digital reporting.

CCAB commences public consultation on draft LLP SORP

The CCAB has published for comment an updated draft of its LLPs SORP.

The draft LLPs SORP includes proposed amendments resulting from:

• Changes to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland;
• Feedback received as part of the 2024 LLPs SORP consultation; and
• The Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024 (SI 2024/1303).

It is proposed that the updated SORP would be effective for periods commencing on or after 1 January 2026.

The CCAB has called for comments by 22 July 2025.

AUDIT & ACCOUNTANCY – FURTHER EDUCATION

College Accounts Direction 2024 to 2025

The Department for Education has published the College Accounts Direction 2024 to 2025.

The 2025 edition includes several revisions, such as replacing references to the Post-16 Audit Code of Practice with those pertaining to the Framework and Guide for External Auditors and Reporting Accountants of Colleges. Annex B, which discusses the Statement of Regularity, Propriety, and Compliance, has been updated to incorporate the accounting officer's responsibilities, along with minor wording adjustments in the template; notably, the requirement for the Chair's signature on this statement has been eliminated. Furthermore, the Statement of Responsibilities for the corporation's members now indicates that the chair of the board of governors is responsible for discussing the accounting officer’s statement with them. The edition also includes references to the LGPS Informer document and updates to the TPS disclosure note, along with a new narrative disclosure regarding 16-19 discretionary and vulnerable bursaries and free meals in further education.

ICAEW

ICAEW issues Regulation and Conduct Annual Report 2024

The ICAEW has published its detailed report and findings from its regulation and conduct review activities during 2024. The full report can be found here.

ICAEW issues new articles on

SUSTAINABILITY

ISSB publishes Exposure Draft proposing targeted amendments to IFRS S2 to ease application for companies

In response to market feedback, the International Sustainability Standards Board (ISSB) has published an proposing targeted amendments to IFRS S2 Climate-related Disclosures that would provide reliefs to ease application of requirements related to the disclosure of greenhouse gas (GHG) emissions.

The Exposure Draft will be open for comment for 60 days with the comment period closing on 27 June 2025.

EFRAG delivers Work Plan to the European Commission in response to ESRS Simplification Mandate

EFRAG has formally submitted its work plan to the European Commission, detailing the steps it will take to address the mandate received on March 27, 2025, regarding the revision and simplification of the European Sustainability Reporting Standards (ESRS).

In response to the Omnibus proposals, and following a request from the European Commissioner Albuquerque, the EFRAG Sustainability Reporting Board (SRB) has approved a comprehensive and expedited work plan aimed at delivering technical advice by October 31, 2025 stating ‘The SRB is fully committed to the objective of reducing the reporting burden for companies while ensuring that ESRS remain practical, effective, and proportionate and support the quality and robustness of sustainability disclosures. EFRAG’s approach will build on the experience of first-wave companies that implemented ESRS as adopted in 31 July 2023 for their 2024 financial year’.

IAASB announces withdrawal of ISAE 3410 for Assurance Engagements on Greenhouse Gas Statements

The International Auditing and Assurance Standards Boards (IAASB) has approved the withdrawal of International Standard on Assurance Engagements (ISAE) 3410, Assurance Engagements on Greenhouse Gas Statements.

This decision follows the approval and certification in 2024 of the International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements stating ISSA 5000 addresses assurance of all types of sustainability information, including greenhouse gas emissions, regardless of how that information is presented and is effective for assurance engagements on sustainability information reported for periods beginning on or after December 15, 2026, or as at a specific date on or after December 15, 2026. Consequently, the withdrawal of ISAE 3410 will take effect from the effective date of ISSA 5000.

TAXATION