Next steps are approved, and implementation plans are underway on the recommendations made by the Independent Review Committee on Standard Setting in Canada (IRCSS) in March 2023.
Two committees – the Effectiveness Review Joint Taskforce and IRCSS Review Working Group – were established this year to assess the recommendations in detail.
Both committees’ assessment results were presented and approved by the Accounting Standards Oversight Council, Auditing and Assurance Standards Oversight Council and Chartered Professional Accountants of Canada (CPA Canada) in early November 2023.
Key approvals included the following:
1. Independent legal entity to house standard-setting activities
This entity will be a not-for-profit and play an administrative role, including ensuring boards have appropriate resources and maintaining the ongoing integrity and effectiveness of the standard-setting system. The entity is anticipated to be established in 2024.
2. Put a new funding model in place
Implement a diversified, user-agnostic, and national funding model, while establishing an agreement with the current funder (CPA Canada) to ensure its long-term support. Funders will not have governance rights in standard setting.
Note: Establishing the independent legal entity will pave the way for this new funding model.
3. Establish a single oversight council
The IRCSS recommended that an effectiveness review be conducted with the assistance of an independent third party to help streamline and harmonize oversight activities and processes. In response to the results, the Effectiveness Review Joint Taskforce recommended, and the current oversight councils approved, that a single council be created to oversee standard setting for accounting, audit and assurance, and sustainability.
Work is now underway to sunset the two current oversight councils and establish the new single council in 2024.
Read more about all 26 IRCSS recommendations and their approved next steps.