New factsheet analysing proposed changes to Corporate Sustainability Reporting Directive and implications
Join Accountancy Europe CEO Eelco van der Enden and team for a spring cocktail on 25 March. Register now!
The European Commission (EC) has just rolled out its first Omnibus package, which brings some important updates to sustainability regulation. One of the key revisions is enhancing the Corporate Sustainability Reporting Directive (CSRD).
The proposal also brings substantial changes to other key sustainability legislation, including the Corporate Sustainability Due Diligence Directive (CSDDD), the EU Taxonomy Regulation, and the Carbon Border Adjustment Mechanism (CBAM).
Regarding the CSRD, these are the main changes:
See Accountancy Europe’s factsheets on the Omnibus and the key proposed changes to CSRD, sustainability reporting standards and CSDDD.
The EC submitted the Omnibus package proposal the European Parliament (EP) and the Council of the European Union for their review, input and adoption.
Accountancy Europe also issued a statement to share initial reactions to the Omnibus proposal.
The Omnibus proposes direct key changes on assurance that include the following:
The International Auditing and Assurance Standards Board (IAASB) has released a post-exposure consultation inviting stakeholders to comment on proposed narrow-scope amendments to the International Standards on Quality Management (ISQMs) and International Standards on Auditing (ISAs).
These amendments aim to align the definitions of “listed entity” and “public interest entity” with recent revisions in the International Ethics Standards Board for Accountants (IESBA) Code.
The Dutch professional body, NBA, introduced new agreed-upon procedures (AUP) form for auditors conducting financial verifications of Horizon Europe grants.
To address discrepancies between the proposed Horizon Europe template and ISRS 4400, the NBA Subsidy Audit Community (SAC) conducted an in-depth review. A memorandum was drawn up, providing a more detailed explanation of these technical preservation. Based on the memorandum, the EC and the Common Audit Service have developed new model reports. According to the NBA, the revised AUP form is applicable to Horizon Europe as well as other European programmes.
The Financial Reporting Council (FRC) published its final report from a market study on sustainability assurance. The report presents key recommendations aimed at improving the UK’s sustainability assurance market, including the creation of a clear policy framework, a unified regulatory regime, and enhanced quality of sustainability assurance information.
As per FRC, these measures are designed to help businesses, assurance providers, and investors navigate the evolving landscape of sustainability reporting and address the growing demand for reliable and transparent information in the market.
The ICAEW issued guidance on how private equity (PE) investment could affect a firm’s audit status, aligning with regulatory expectations set by the UK Financial Reporting Council (FRC).
ICAEW advices firms considering PE funding to engage early with both PE investors and the FRC, as the process involves complex legal and governance structure.
The regulator highlights risks to audit independence, conflicts of interest, and compliance with audit restrictions, particularly for public interest entity (PIE) auditors.
Despite challenges, external capital could create opportunities for technological innovation and increased competitiveness in the audit market.
