The UK Financial Reporting Council (FRC), under new leadership and facing the prospect of restructuring, published a draft of its strategy for 2025-28 and its budget for 2025-26.
“Since taking on the role of CEO a little over a year ago, I have focused on ensuring the FRC is restless at seeking to improve the way it delivers its public interest purpose and supports UK economic growth and investment,” FRC CEO Richard Moriarity said in a news release. “Our draft three-year strategy and draft Plan and Budget for 2025/26 embody this approach.”
The strategy document updates the organisation’s purpose statement to explicitly address its focus on supporting economic growth and the important role that actuaries play. The statement now reads: “The purpose of the FRC is to serve the public interest and support UK economic growth by upholding high standards of corporate governance, corporate reporting, audit and actuarial work.”
The press release noted that the “FRC welcomes the government’s commitment, as outlined in the King’s Speech in July 2024, to introduce draft legislation aimed at reforming and modernising the FRC’s statutory authorities and powers.
“This future change will bolster the organisation’s ability to fulfil its purpose and deliver on its public interest mandate with a strengthened statutory foundation.”
IASB updates standards for nature-dependent electricity contracts
The IASB has “acted swiftly” to issue targeted amendments related to the reporting of the financial effects of nature-dependent electricity contracts, according to a news release.
Nature-dependent electricity contracts help companies secure their electricity supply from sources such as wind and solar power and are often structured as power purchase agreements (PPAs).
Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures:
- clarify the application of the ‘own-use’ requirements;
- permit hedge accounting if these contracts are used as hedging instruments; and
- add new disclosure requirements to enable investors to understand the effect of these contracts on a company’s financial performance and cash flows.
The amendments are required to be applied for annual reporting periods beginning on or after 1 January 2026. Companies can apply the amendments earlier.
IFRS proposes handbook updates to reflect the creation of the ISSB
The first proposed changes to the IFRS Foundation Due Process Handbook since 2020 describe the process that the foundation’s standard-setting boards — the International Sustainability Standards Board (ISSB) and the IASB — follow in their development, maintenance, and application support of IFRS standards.
The ISSB was created in 2021.
According to a news release, the proposed updates do not change the due process but rather ensure that the handbook includes the rigorous, inclusive, and transparent standard-setting process that the ISSB and the IASB follow. The handbook also describes the due process for Sustainability Accounting Standards Board (SASB) standards and the SASB standards taxonomy, which are maintained by the ISSB.
Comment letters will be accepted until 28 March 2025.
Organisations share insights on climate and sustainability reporting
The International Federation of Accountants (IFAC), the IFRS Foundation, and the International Organization of Securities Commissions (IOSCO) released video recordings from a series of invite-only sessions at Climate Week NYC.
According to a news release, top leaders at the event shared insights to advance global adoption and implementation of ISSB standards and build an understanding of sustainability assurance in its early days.
The video series includes a session on assurance that features Ami Beers, CPA, CGMA, senior director–Assurance & Advisory Innovation at AICPA & CIMA, together as the Association of International Certified Professional Accountants.
Also this week, the Global Reporting Initiative (GRI) published a paper that examines the impacts of digitalisation on sustainability reporting, covering related environmental issues, social challenges, and gaps in current reporting standards.
— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.