Last updated: 13 May 2024 11:00 Posted in:
Proposals to change International Education Standards (IES) so they embed sustainability, from analysis to reporting to assurance, in professional accountants’ training have been unveiled by the International Federation of Accountants (IFAC).
IFAC CEO Lee White emphasised the significance of the changes, stating: “Investors and other stakeholders need sustainability reports and disclosures that are on a par with the high-quality, decision-useful financial reports that accountants already deliver.
“To be future-fit, accountants must develop the right competencies to meet this need. The proposals provide a robust framework for the progression to develop capable accountants who produce report, and assure sustainability information.”
Key proposals include:
· Emphasising working with experts and in multi-disciplinary teams.
· Introducing key sustainability reporting concepts, such as systems thinking, value chains and scenario analysis.
· Referencing relevant sustainability reporting and assurance standards.
· Creating new assurance competence area and learning outcomes.
Additionally, IFAC has proposed changes to ‘IES 6, Initial Professional Development – Assessment of Professional Competence’, to modernize the standard to align with current good practice and clarify previously-existing requirements. This includes introducing new principles emphasizing integrity, authenticity, equity and inclusion. It said these changes will aid professional accountancy organizations, universities, and training programs in evaluating candidates’ readiness for the professional accountant role.
To help its stakeholders and the accountancy profession understand the proposed changes related to sustainability, IFAC will hold global webinars on May 21. See the IFAC website for additional details and to register.
IFAC encourages all stakeholders to provide feedback on both set of proposed changes by July 24, 2024, using the Response Templates available on the IFAC website.
