Context
The standard setting environment has evolved since the last review, conducted 20 years ago.
The Independent Review Committee of Standard Setting in Canada (the Committee) was established in May 2021 to conduct a review of the current structure for establishing Canadian accounting and assurance standards, and what might be needed for the future – including sustainability standards.
Initiated by the Accounting Standards Oversight Council (AcSOC) and the Auditing and Assurance Standards Oversight Council (AASOC), the Committee’s objective was to consider the extent to which the Canadian standard-setting model can effectively respond to this environment, what changes might be appropriate to ensure it is “fit for the future” and continues to serve the public interest.
Early recommendation issued to establish sustainability standards board
With developments on sustainability disclosure standards continuing to evolve, the IRCSS issued an early recommendation – that a sustainability standards board be established in Canada.
Approved by the oversight councils, the Canadian Sustainability Standards Board (CSSB) was established in June 2022.
The CSSB, operational since June 2023, has released Canada’s first drafts of sustainability disclosure standards – Canadian Sustainability Disclosure Standards (CSDS) 1 and 2 – for public comment.
Final recommendations delivered in June 2023
Upon culmination of the standard setting review, the Committee delivered its final recommendations report in June 2023. The report’s 26 recommendations, based on a thorough examination of current standard setting practices, research, and, extensive input from the public, centered on ensuring the structure and oversight of standard setting continues to have a sustainable funding model and processes that are effective and responsive to the public interest.
Recommendations approved and next steps
Two committees – the Effectiveness Review Joint Taskforce and IRCSS Review Working Group were set up to assess and address the recommendations. In November 2023, their assessment results and next steps were approved by the Accounting Standards Oversight Council, Auditing and Assurance Standards Oversight Council and Chartered Professional Accountants of Canada (CPA Canada).