Changes coming to Canada's financial reporting and assurance standards

Independent review of financial and sustainability reporting and assurance standard setting continues with release of consultation paper

TORONTO, Dec. 8, 2021 /CNW/ - Today the Independent Review Committee on Standard Setting in Canada released its Consultation Paper. The paper outlines key matters the committee suggests should be considered to keep Canada's financial reporting and assurance standards independent and internationally recognized. They invite feedback on how best to do so – both for financial and sustainability standard setting.

"Keeping up with the accelerating pace of change is a reality," says Edward J. Waitzer, Chair of the committee. "We hope our review will result in changes to ensure Canada's standard-setting processes are fit for the future."

The paper will be open for public comment until February 28, 2022.

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The committee notes that the current Canadian standard-setting process has evolved over time. Developments globally and rapidly shifting needs and expectations of stakeholders have led the committee to identify several key challenges, including:

• A call for action on sustainability reporting standards: The committee recommends creating a Canadian Sustainability Standards Board. This new board would work alongside Canada's existing standards boards and liaise with the new International Sustainability Standards Board, ensuring that the Canadian perspective is part of international decision making.
• Safeguarding independence: The committee asks if additional safeguards are needed to keep Canadian standard setting independent, such as revisiting the current legal structure or funding model.
• Being responsive to stakeholder needs: The committee asks if the established process for setting standards is timely and effective, including engaging the right stakeholders at the right time.

The committee's focus was informed by concerns for the public interest, diversity, equity and inclusion, and Indigenous rights – concepts the committee views as "interrelated and essential to ensuring that standard setting is relevant and responsive to Canada's unique circumstances," says Waitzer.

The paper will be open for public comment until February 28, 2022. The committee welcomes input and hopes to actively engage with interested stakeholders. Feedback gathered will drive the final recommendations the committee makes next summer to Canada's accounting and auditing oversight councils, who will ultimately decide how the recommendations should be implemented.

For more information

IRCSSCanada.ca 

SOURCE Independent Review Committee on Standard Setting in Canada

Providing media support for the committee is Daniella Girgenti, Director, Communications - Standards, Financial Reporting & Assurance Standards Canada, [email protected], 416-204-3482