Accounting
More companies seek assurance on sustainability reporting
Approximately three-quarters of large global companies are receiving assurance services on their sustainability reporting, according to a new report.
The
Nearly all companies (98%) report some information on sustainability, which is unchanged from last year.
Audit firms, not consultants or other service providers, continue to hold the lead (55%) in offering assurance on sustainability disclosures by large global companies, with broad variations country to country. Audit firms’ overall share of the market declined from 58% in 2022, but there are some mitigating factors for the decrease, including the consolidation of reports. In the European Union, where audit firms historically supply the majority of sustainability assurance, firms started issuing a single assurance report instead of a series of separate reports, reducing the sheer number of reports issued, though they’re for an increased number of assurance clients..
Consultants and non-audit firm service providers are more likely to release multiple greenhouse gas-related assurance reports (for example, an average of 2.5 assurance reports were generated per company in South Korea in 2023).
When companies get assurance for the first time, they often focus on greenhouse gas-related information and begin by engaging other service providers who specialize in that area.
The report found the increased use of audit firms over the previous year in several countries in 2023, including Singapore (+6 percentage points), South Africa (+4), the United Kingdom (+5) and United States (+5). In the case of the U.S., audit firms’ share of sustainability assurance grew from 23% to 28%.
“Auditors have extensive education requirements, adhere to strict independence rules and possess a deep and holistic view of an organization’s business, processes and risk profile,” said Susan Coffey, CEO of public accounting for AICPA & CIMA, in a statement Monday. “That makes them ideal candidates to perform sustainability assurance engagements, and we’re seeing many boards and audit committees endorsing that view as corporate reporting matures.”
Over three-fourths of companies now report sustainability information with financial disclosures in their annual or integrated reports. Organizations that include sustainability information within such reports typically use their statutory auditor to provide assurance over those disclosures.
Use of sustainability information in annual reports has been rising, with 44% of companies including it in their annual report, up from 18% five years ago. Five jurisdictions experienced double-digit increases in sustainability assurance in 2023: Hong Kong, Indonesia, Mexico, Russia and Saudi Arabia.
“The largest global companies have responded well to voluntary systems of sustainability reporting and assurance, driven by investor demand,” said IFAC CEO Lee White in a statement. “With new global standards in place, regulators now have the toolkits to move from voluntary to mandatory disclosures over time, which we expect will further drive high-quality, consistent and comparable sustainability-related information for the investing public and all stakeholders. IFAC and our members, including AICPA & CIMA, remain committed to supporting this shift—advancing trust, good governance, and global alignment in sustainability disclosure, united in shaping a future where sustainability information earns the same level of trust as financial reporting.”
Total postsecondary spring enrollment grew 3.2% year-over-year, according to a report.
The National Student Clearinghouse Research Center published the latest edition of its
The report found that undergraduate enrollment grew 3.5% and reached 15.3 million students, but remains below pre-pandemic levels (378,000 less students). Graduate enrollment also increased to 7.2%, higher than in 2020 (209,000 more students).
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Community colleges saw the largest growth in enrollment (5.4%), and enrollment increased for all undergraduate credential types. Bachelor’s and associate programs grew 2.1% and 6.3%, respectively, but remain below pre-pandemic levels.
Most ethnoracial groups saw increases in enrollment this spring, with Black and multiracial undergraduate students seeing the largest growth (10.3% and 8.5%, respectively). The number of undergraduate students in their twenties also increased. Enrollment of students between the ages of 21 and 24 grew 3.2%, and enrollment for students between 25 and 29 grew 5.9%.
For the third consecutive year, high vocational public two-years had substantial growth in enrollment, increasing 11.7% from 2023 to 2024. Enrollment at these trade-focused institutions have increased nearly 20% since pre-pandemic levels.
Jordan Vonderhaar/Photographer: Jordan Vonderhaar/
The Internal Revenue Service has released
The Inflation Reduction Act of 2022 amended Sec. 55 to impose the CAMT based on the “adjusted financial statement income” of an “applicable corporation” for taxable years beginning in 2023.
Among other details, proposed regs provide that “applicable corporation” means any corporation (other than an S corp, a regulated investment company or a REIT) that meets either of two average annual AFSI tests depending on financial statement net operating losses for three taxable years and whether the corporation is a member of a foreign-parented multinational group.
Prior to the publication of any final regulations relating to the CAMT, the Treasury and the IRS will issue a notice of proposed rulemaking. Notice 2025-27 will be in IRB: 2025-26, dated June 23.
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