Crypto tax reporting is rapidly becoming globally coordinated, according to PwC’s Global Crypto Tax Report 2022. The four main drivers behind this are: the OECD’s Crypto-Asset Reporting Framework; updates to the Common Reporting Standard; the European Union’s Directive on Administrative Cooperation 8; and the U.S.’s Infrastructure Investment and Jobs Act. The increased focus on the taxation of the industry follows recent high-profile business model failures of crypto exchanges and hedge funds, including FTX.
The number of weeks staff of the Public Company Accounting Oversight Board (PCAOB) spent in Hong Kong examining audits conducted by KPMG Huazhen LLP and PwC Hong Kong. The United States accounting watchdog on 16 December 2022 said it had full access to inspect and investigate firms in China for the first time ever, following a long-running dispute over the auditing compliance of U.S.-listed Chinese firms. The PCAOB said it identified numerous potential deficiencies and would release the inspection report this year.
The International Federation of Accountants (IFAC) named Asmâa Resmouki as its new President in November 2022. “I am honoured to have been elected IFAC’s next president, and proud to be the organization’s first president from the Africa-Middle East Region,” Resmouki said in a statement.
International Tax Reform –
Pillar Two Model Rules
The title of an exposure draft published by the International Accounting Standards Board (IASB) proposing a temporary exception to the accounting for deferred taxes arising from the implementation of the Organization for Economic Cooperation and Development’s (OECD) Pillar Two model rules. The IASB’s proposal comes in response to concerns from its stakeholders about the potential implications of the OECD corporate tax rules when it comes to accounting for income tax in financial statements.
The percentage of IFAC’s Professional Accountants in Business (PAIB) Advisory Group which see data localization and data sovereignty as a challenge and not an opportunity. This was a key takeaway from a discussion among the group of business and finance leaders during its September 2022 meeting. The summary meeting report notes that the profession has an important role in supporting accountants in data stewardship roles, and in advocating for an international approach and coordination to data governance.
IFRS 17 Insurance Contracts
The accounting standard which applies to companies with annual reporting periods beginning on or after 1 January 2023. “IFRS 17 provides consistent principles for all aspects of accounting for insurance contracts. It removes existing inconsistencies and enables investors, analysts and others to meaningfully compare companies and contracts,” says IASB Chair Andreas Barckow in a video.
“China is the world’s second largest economy and plays a vital role in supply chains for companies around the world – making it an important jurisdiction as the ISSB develops its global baseline of sustainability disclosures for the capital markets.”
– Emmanuel Faber, International Sustainability Standards Board (ISSB) Chair. On 29 December 2022, the Trustees of the IFRS Foundation signed a memorandum of understanding with the Ministry of Finance of China to establish a Beijing office of the IFRS Foundation. The office staff will be focused on leading and executing the ISSB’s strategy for emerging and developing economies, acting as a hub for stakeholder engagement in Asia. The office is expected to open in mid-2023. It was previously announced that the ISSB will have a global and multi-location presence, with all regions covered.
How much Deloitte in the United Kingdom has reduced its office temperatures, in a bid to cut carbon emissions and costs amid the wardriven energy crisis, according to media reports. Deloitte told its U.K. staff that its offices would now be heated to between 19 and 22 degrees Celsius as part of new energy-saving plans. Deloitte aims to reduce its carbon emissions from business travel by 50 percent per full-time employee by 2030, compared with 2019 levels.