Lee White, Chief Executive Officer of The International Federation of Accountants (IFAC) made the following statement today:
“The International Ethics Standards Board for Accountants (IESBA) recently finalized its International Ethics Standard on Sustainability Assurance (IESSA). The vote by IESBA Board Members to approve the new standard was not unanimous. IESSA is now subject to the Public Interest Oversight Board’s certification in January 2025.
Concerns with practicability
“There is still a lot of complexity in the IESSA, leading to practicability challenges, in particular -- but not restricted to -- significant practical difficulties with the value chain considerations. These issues remain after several months of consultation, including with IFAC and many of its members, during which we consistently communicated to IESBA concerns and challenges regarding the future implementation of the standard, in particular for small-and medium-sized practices.
Call to action
“IFAC fully respects the independence of the standard-setting process. At the same time, we remain committed to collaborating with IESBA to address the practical challenges identified during the development of IESSA.
"To this end, I am proposing a summit to bring together IESBA, IFAC and representatives of its members, as well as key stakeholders, including users of the standards and practitioners, within the first quarter of 2025. This will be an opportunity to continuously improve consultation and engagement, and to facilitate further dialogue. The aim would be to ensure the newly approved IESSA is both fit for purpose and firmly grounded in a principles-based approach, setting the stage for its successful global adoption and implementation.
"The stakes are high, and collaboration is essential. Together, we can align on a path forward that meets the needs of the profession, users, and is in the public interest.”
About IFAC
IFAC, by connecting and uniting its members, makes the accountancy profession truly global.
IFAC member organizations are champions of integrity and professional quality, and proudly carry their membership as a badge of international recognition.
IFAC and its members work together to shape the future of the profession through learning, innovation, a collective voice, and commitment to the public interest.