International Federation of Accountants Publishes Publication on Sustainability Certification

The Korean Institute of Certified Public Accountants announced on the 5th that “the International Federation of Accountants (IFAC) published a new publication last month titled ‘What to Expect Regarding Sustainability Assurance.’”

White Li, CEO of IFAC, stated, “Policy authorities worldwide are pushing for the introduction of mandatory requirements for sustainability reporting and assurance,” emphasizing, “With the release of this publication, accountants must equip themselves with sufficient capabilities amid these changes and fulfill their important and public-interest roles.”

This publication is part of IFAC’s plan to continuously provide information on sustainability reporting and assurance to stakeholders such as governments and corporations. Stakeholders of sustainability information require reliable data and information on corporate greenhouse gas emissions and other sustainability-related topics,

and it is expected that assurance on related information disclosures will enhance stakeholders’ trust levels in the information, which is a key point.

However, the publication pointed out that many countries worldwide are adopting a phased approach to sustainability disclosure and assurance, and in the early stages, sustainability assurance will cover only some items among sustainability topics. It also noted that assurance engagements are likely to be at a limited assurance level rather than a reasonable assurance level.

Additionally, in the early stages of system implementation, modified conclusions may frequently be drawn in sustainability assurance, and the publication provides examples of report wording when an assurance practitioner expresses a modified conclusion regarding sustainability assurance engagements.

The Korean Institute of Certified Public Accountants plans to continuously provide the latest information, including publications on sustainability reporting and assurance issued by IFAC, for stakeholders going forward.