To meet the public sector’s unique reporting needs, the International Public Sector Accounting Standards Board (IPSASB) has drafted the world’s first climate-related disclosure standard for governments around the world, a news release said.
In a bid to promote global consistency and comparability, the exposure draft (ED) proposes public sector specific guidance that builds on the International Sustainability Standards Board (ISSB) global baseline. This development aims to hold governments accountable in their role to mitigate climate change risks.
The IPSASB urges affected and interested parties, including professional accountants and sustainability assurance providers, to share their feedback on the draft by 28 February. Comments can be submitted online.
In addition, the board published an ED of its standard to account for tangible natural resources. Stakeholder comments are also requested by 28 February.
The ED encompasses “all naturally occurring items with physical substance that embody service potential or the capability to generate future economic benefits,” the release said. No guidance currently exists on the accounting for tangible natural resources, the release acknowledges, meaning governments lack information on the extent and value of tangible natural resources.
The final standard hopes to “fill an important gap” in the IPSASB’s literature to improve financial reporting, financial management, and policy decisions for many governments, IPSASB Chair Ian Carruthers said in the release.
ISSB updates SASB standards
Last month, the ISSB issued updates to the Sustainability Accounting Standards Board (SASB) standards taxonomy, to reflect additional disclosure requirements that have occurred from recent amendments, a news release said.
Amendments that have driven these updates include:
- The consequential amendments to the SASB standards that were made in connection with the issuance of IFRS S2 Climate-related Disclosures in June 2023; and
- SASB amendments that were made as part of the ISSB’s International Applicability of the SASB Standards project in December 2023.
IASB seeks feedback on intangible assets standard
To assess whether the requirements in IAS 38, Intangible Assets remain relevant and continue to reflect current business models, the IASB is seeking feedback from investors, companies, and other stakeholders on the current standard’s effectiveness, a news release said.
According to the release, the board is looking to evaluate whether the standard presents a problem that the IASB needs to solve; whether the IASB needs to improve the scope of the project; and how it can deliver timely improvements to IAS 38.
The survey is accessible online and is open until 30 November.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.