[Global Financial Insights] IAASB Releases New Illustrative Reports to Support ISSA 5000 Implementation and More

Editorial Team – [2025] 180 taxmann.com 777 (Article)

Global Financial Insights is a weekly feature for the Accounts and Audit Module subscribers of Taxmann.com. It provides you with the latest updates on financial reporting and auditing practices from across the globe. Here is this week’s financial update:-

1. IAASB Releases New Illustrative Reports to Support ISSA 5000 Implementation

The International Auditing and Assurance Standards Board (IAASB) has issued a new set of illustrative practitioner’s assurance reports to further assist in the implementation of ISSA 5000, General Requirements for Sustainability Assurance Engagements. Developed in collaboration with several jurisdictional auditing and assurance standard setters, these examples aim to provide practical guidance as entities begin applying the new sustainability assurance standard.

While ISSA 5000 already includes four basic illustrative reports, the newly released publication offers more detailed, scenario-based examples that reflect situations practitioners commonly encounter. The guidance consists of five examples featuring unmodified assurance conclusions, covering engagements aligned with IFRS S1 and S2, selected sustainability disclosures, multiple reporting frameworks, and mixed limited and reasonable assurance. It also provides three examples demonstrating modified conclusions, including qualified, adverse, and disclaimer outcomes.

By offering practical illustrations of technical issues that may arise during sustainability assurance engagements, the IAASB aims to support consistent and confident application of ISSA 5000 across jurisdictions. This release forms part of the Board’s broader initiative to promote smooth adoption and enhance global sustainability assurance practices.

Source – International Auditing and Assurance Standards Board

2. IASB Update – November 2025 Highlights

The IASB has published its November 2025 Update. At the 18 November meeting, the Board discussed how to use any spare capacity during its joint agenda consultation with the ISSB. As capacity allows, the IASB plans to select one new project from four topics, i.e., operating segments, pollutant pricing mechanisms, hyperinflationary accounting, and crypto assets. All 12 members supported this approach.

(a) Equity Method

The IASB continued re-deliberating the Exposure Draft on IAS 28. Key tentative decisions included:

• Measuring the cost of an associate or joint venture at fair value, including previously held interests.
• Recognising and measuring contingent consideration at fair value (except equity-classified amounts).
• Applying fair value requirements to additional ownership interests and extending the IFRS 3 measurement period.
• For partial disposals, measuring the disposed portion proportionately and recognising the gain or loss in profit or loss.

Further re-deliberations will continue.

(b) Intangible Assets

The IASB met on 18 November 2025 to receive an update on the project. It was not asked to make any decisions. The IASB will continue work on the initial streams of the project and discuss the findings in the first quarter of 2026.

Source – International Accounting Standards Board

Click Here To Read The Full Article