ISCA Invites Comments On Exposure Draft Of Proposed NOCLAR Pronouncement
The proposed NOCLAR Pronouncement in the exposure draft (ED) sets out a new framework to guide professional accountants in deciding how to act in the public interest when they become aware of NOCLAR, committed by a client or employer. Please send comments to email@example.com by 24 May 2019.
IESBA Proposes Revisions To Part 4B Of The Code To Align With Terms And Concepts Used In ISAE 3000 (Revised)
IESBA’s proposed revision fulfils a pre-commitment announced in its proposed Strategy and Work Plan 2019-2023, to review Part 4B of the Code for any changes needed to make the provisions in that Part consistent with the revised assurance terms and concepts in IAASB’s ISAE 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information.
ISCA Comments On IASB’s ED Onerous Contracts – Cost Of Fulfilling A Contract
We highlighted that as the proposed amendments cover all contracts within the scope of IAS 37, this would be a significant change from current market practice. It could even adversely impact companies’ decision making. We have recommended for IASB to reconsider the proposed amendments and further assess the expected impact of the proposals.
ISCA Issues Technical Bite-Size Guidance On IFRIC’s Finalised Agenda Decision
The IFRS Interpretations Committee (IFRIC) has issued an Agenda Decision relating to the capitalisation of borrowing costs for the construction of a residential multi-unit estate development in March 2019. ISCA has issued a Technical Bite on this Agenda Decision due to its significance to the real estate developers in Singapore.
IFRIC has also stated that entities are entitled to “sufficient time” to implement accounting policy changes resulting from agenda decisions. In this Technical Bite, we have shared our view on what is meant by “sufficient time”.
AUDITING AND ASSURANCE
IAASB Publishes Professional Scepticism Communiqué
This communiqué provides updates on IAASB’s efforts to appropriately reflect professional scepticism in its standards, together with other relevant news and information.
IAASB Proposes Changes To Quality Management At Firm And Engagement Level
IAASB issued EDs on three interrelated standards that address quality management. Among the proposals is a new risk-based approach that firms are required to use in managing engagement quality. The new approach will compel firms to be proactive, responsive and thoughtful about the nature and circumstances of the firm and the engagements it performs in designing, implementing and operating its system of quality management. IAASB has also issued practical examples and guidance to demonstrate how the proposed standards may be applied, and to provide support for understanding certain aspects of the standards.