The European Commission is currently conducting a consultation on the Proposal for a directive on the definition of criminal offences and penalties for violations of Union restrictive measures. In the opinion of the Commission, the classification of a violation of European law on restrictive measures of the European Union as a criminal offence differs greatly in the legal systems of the member states. This and the maximum length of prison sentences and fines should now be harmonised.

Public/chartered accountants are currently affected due to the prohibition on providing auditing, accounting and tax advice services to Russian companies according to Art. 5n of Regulation (EU) 833/2014.

The Federal Ministry of Justice has just published a Framework Paper on Strengthening Courts in Economic Disputes and Introducing Commercial Courts (in German). Public accountants or chartered auditors could be affected by the plan if they appear before civil courts as expert witnesses.

The aim of the plan is to permanently strengthen Germany as a place for justice and business. 

On 24 January 2023, the International Auditing and Assurance Standards Board (IAASB) published the draft of a section on auditing a group financial statement within the proposed audit standard for less complex entities (LCE) Proposed Part 10, Audits of Group Financial Statements of the Proposed International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE). Positions are requested by 2 May 2023.

The International Ethics Standards Board for Accountants (IESBA) is organising four round tables on the subject of sustainability in late March/early April 2023 (times not yet known):

• 24 March 2023, Paris
• 30 March 2023, Sydney
• 3 April 2023, Singapore
• 6 April 2023, New York

After the Corporate Sustainability Reporting Directive – CSRD, 2022/2464/EU was published in the Official Journal of the European Union on 16 December 2022, it entered into force on 5 January 2023. The previous CSR Directive (Directive 2014/95/EU) has therefore been replaced.

The WPK participated in the Federal Ministry of Justice’s public consultation on the Drafts of the European Sustainability Reporting Standards (ESRS) and commented on them on 21 December 2022.

The European Federation of Accountants and Auditors for small and medium-sized enterprises (EFAA for SMEs) has developed guidelines to give members of the profession an overview of the subject of sustainability reporting and makes proposals for how to react quickly to the current challenges. It also contains useful tips for how public/chartered accountancy firms can prepare to support their clients when compiling sustainability reports.

• Sustainability Reporting - How SMPs Can Build the Capacity to Support SMEs? (PDF)
• What SMEs and SMPs need to know aboput Sustainability Reporting (PDF)