As mandatory disclosure requirements become the norm for global organisations, the International Federation of Accountants (IFAC) and other entities have collaborated to release new guidance for delivering robust greenhouse gas (GHG) reporting.
The publications are a joint effort by IFAC and the We Mean Business Coalition, in partnership with Accounting for Sustainability, Global Accounting Alliance, and World Business Council for Sustainable Development. The publications aim to guide CFOs and other finance professionals to build on existing systems and processes, a news release said, to undertake or enhance cost-effective and investor-grade GHG reporting.
The first part, 8 Steps to Enhance GHG Reporting: A Roadmap for Accounting and Finance Professionals, offers guidance for accountants to engage with others across their business to prepare for GHG emissions reporting requirements aligned to financial reporting processes, the release said. The second part, GHG Reporting Building Blocks for Accountants, offers technical guidance “to collect and enhance the quality of data related to all scopes of GHG emissions”.
“The publications have been released in preparation for the upcoming international and jurisdictional standards and regulations that will make it mandatory for companies to advance GHG reporting to new levels and provide investors with decision-useful information related to climate risks and opportunities,” the release said.
IFAC and IBA cooperate further on anti-corruption mandate
IFAC and the International Bar Association (IBA) have announced a memorandum of understanding that “formalises and demonstrates a commitment to closer cooperation between the two organisations and the legal and accountancy professions as a whole”, a news release said.
Cooperation has increased in recent years in the context of The IBA and IFAC Anti-Corruption Mandate and close engagement on the roles of the two professions in combatting corruption and financial crime, the release said. The memorandum provides a framework for expanding the cooperation between the IBA and IFAC, with key stakeholders such as the United Nations and Financial Action Task Force.
“Other areas of cooperation include maintaining the reputations and integrity of the accountancy and legal professions; ensuring that initiatives to regulate both professions are proportionate and fit-for-purpose; and enhancing the strength of the IBA and IFAC’s collective voice on global policy issues so that the legal and accountancy professions are in the best position to serve the public interest,” the release said.
IFAC, Transparency International UK, and the World Economic Forum also released a report on the “current state of anti-corruption reporting practices and highlights the urgent need for enhanced quality, reliability, and comparability in this crucial area”, a separate news release said. It raises a series of policy questions around jurisdictional differences, comparability, governance, and the completeness and reliability of the information provided.
IASB opens consultation on proposed amendments to SME standard
The IASB has proposed amendments to the IFRS for SMEs accounting standard to help small- and medium-size entities (SMEs) respond to the international tax reform, a news release said. It is the first time that the IASB has proposed urgent amendments to the standard outside its periodic review, according to a news release.
According to the release, the proposed amendments would:
- Introduce a temporary exception to accounting for deferred taxes arising from the implementation of the Pillar Two model rules;
- Introduce targeted disclosure requirements in periods when Pillar Two legislation is in effect; and
- Clarify that ‘other events’ in the disclosure objective for income tax include enacted or substantively enacted Pillar Two legislation.
The exposure draft is open for comment until 17 July. Stakeholders can also take part in an online survey. Comments can also be sent by email to commentletters@ifrs.org.
FRC publishes revisions to proposed auditing standard
The UK Financial Reporting Council (FRC) has published revisions to proposed International Standard on Auditing (ISA) 505, External Confirmations. The revisions reflect recent enforcement findings as well as ensuring that the standard reflects modern approaches to obtaining confirmations, a news release said, with additional material on the use of digital platforms, enhanced requirements in relation to investigating exceptions, and a prohibition on negative confirmations.
This ISA is effective for audits of financial statements for periods beginning on or after 15 December 2024. The comment deadline on the consultation is 1 September. Comments should be emailed to Jason Bradley, FRC Head of Assurance Technology, at AAT@frc.org.uk.
IASB requests stakeholder feedback on IFRS 9
The IASB has launched a call for stakeholder feedback on its post-implementation review of the expected credit loss requirements in IFRS 9, Financial Instruments, a news release said. The main objective of the requirements in IFRS 9 is to provide investors with more useful information about a company’s expected credit losses.
Disclosures play an important part in providing investors with the information they need about expected credit losses, the release said. As a result, the IASB is also seeking stakeholder feedback on related disclosure requirements in IFRS 7, Financial Instruments: Disclosures in this post-implementation review.
The request for information is open for comments until 27 September. Comments can be sent by email to commentletters@ifrs.org.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.
