ISSB to allow year of relief for companies’ sustainability disclosures

The International Sustainability Standards Board (ISSB) said it is allowing companies time to apply the ISSB's first two standards, S1 (general requirements) and S2 (climate), a news release said.

"This means companies will be able to use their first year of reporting to get familiar with concepts and requirements within the ISSB standards — undertaking important exercises to get their systems in place — using climate first, before reporting on other sustainability-related risks and opportunities," the release said.

For the first year they use the ISSB standards, companies need not:

• Provide disclosures about sustainability-related risks and opportunities beyond climate-related information;
• Provide annual sustainability-related disclosures at the same time as the related financial statements;
• Provide comparative information;
• Disclose Scope 3 greenhouse gas emissions; or
• Use the Green House Gas Protocol to measure emissions, if they are currently using a different approach.

"Companies will then need to provide full reporting on sustainability-related risks and opportunities, beyond climate, from the second year," the release said.

The ISSB's S1 and S2 will be issued towards the end of the second quarter of 2023, following extensive market feedback to inform their development, the release said.

UK FRC amends FRS 102

The UK Financial Reporting Council (FRC) issued draft amendments to FRS 102, The Financial Reporting Standard Applicable in the UK and Republic of Ireland, a news release said. The amendments propose a temporary exception to accounting for deferred taxes arising from the implementation of the Pillar Two model rules, alongside targeted disclosure requirements, the release said.

The draft amendments are based on similar proposals issued by the IASB. The release said the FRC is seeking consultation now, instead of waiting for the IASB's final amendments, "to make similar accounting relief and disclosure requirements available in the FRC's financial reporting standards to a consistent timeframe".

The FRC intends to finalise amendments this summer. Comments are requested by 24 May and can be submitted to ukfrs@frc.org.uk.

IFRS foundation publishes annual report

The IFRS Foundation published its annual report and audited financial statements for the year ended 31 December 2022. The report discusses priorities for 2023 and key milestones, according to a news release.

Some of the IASB's priorities for this year include improving IFRS accounting standards on approximately 20 existing projects (including consulting with stakeholders on IFRS 15, Revenue From Contracts With Customers; IFRS 9, Financial Instruments; and IFRS 16, Leases), the report said. The IASB also expects to finalise narrow-scope amendments on international tax reform, supplier finance arrangements, and lack of exchangeability.

IESBA issues work plan proposals for 2024–2027

The International Ethics Standards Board for Accountants (IESBA) released a report, Proposed IESBA Strategy and Work Plan, 2024–2027: Towards a More Sustainable Future: Advancing the Centrality of Ethics, for public comment. A news release said the report sets out IESBA's vision, strategic drivers, and themes to guide its actions over the next strategy period.

"Our aim in the coming years is to develop global ethics and independence standards that guide ethical behaviour and underpin public trust in information that is fundamental to the proper functioning and sustainability of organisations, financial markets, and economies worldwide," said IESBA Chair Gabriela Figueredo Dias.

The board invites stakeholder comments by 7 July. Comments can be submitted online or to IESBA Director Geoff Kwan at geoffkwan@ethicsboard.org.

— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.