A new report from the IFRS Foundation illustrates how jurisdictions globally have made progress in introducing International Sustainability Standards Board (ISSB) standards in their legal and regulatory frameworks.
Over 1,000 companies have referenced the ISSB in their reports, and 30 jurisdictions are making progress in climate-related reporting, a news release said. The report also discloses reporting trends within the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations.
Overall, companies are making some strides with further improvements needed. “[Eighty-two per cent] of companies disclosed information in line with at least one of the 11 TCFD recommendations as companies around the world turn their attention to climate-related disclosures,” the release said. “However, with less than 3% of these companies reporting in line with all 11 TCFD-recommended disclosures, few companies provide disclosures that cover the company’s climate-related governance, strategy, risk management, or metrics and targets.”
Other findings from the report, according to the release:
- Twenty-nine jurisdictions that have finalised or published proposals on climate-related disclosures have included Scope 3 greenhouse gas emissions disclosure requirements, with some allowing or proposing brief extensions of transitional reliefs to prepare for the requirements.
- “[Twenty-eight] jurisdictions have included or are considering requirements for industry-specific disclosure,” the release said. “Just two of the 30 jurisdictions have signalled the intention to make industry-specific disclosure voluntary, at least initially.”
- Ninety per cent of the jurisdictions have included or are considering requirements for disclosure covering all sustainability-related risks and opportunities over time.
IOSCO report looks at transition plan disclosures
The International Organization of Securities Commissions (IOSCO) published a report exploring how transition plan disclosures can support investor protection and market integrity.
The report shares key challenges in this area with additional guidance on where transition plan disclosures could clarify disclosure expectations and lead towards more standardised information, a news release said.
IASB opens consultation on IAS 37 revisions
A consultation has opened on proposed amendments to IAS 37, Provisions, Contingent Liabilities, and Contingent Assets.
The IASB seeks to improve the requirements for recognising and measuring provisions on company balance sheets, a news release said. The board is proposing targeted improvements that would help companies apply the requirements more consistently and provide investors with more useful information.
The revisions aim to clarify how companies assess when to record provisions and how to measure them, the release said, with proposed amendments that would require companies to provide more information about the measurement.
The consultation is made up of three parts, detailed in three exposure drafts. Comments can be submitted online until 12 March 2025.
FRC issues audit training guidance
The UK Financial Reporting Council (FRC) published the criteria to assess local audit specialist training developed by recognised qualifying bodies (RQBs), training providers, and audit firms, a news release said.
To support increased capacity in the local audit system, the FRC has already revised guidance to allow for those with significant statutory audit experience to apply for key audit partner status if they have undertaken pre-approved local audit specialist training, the release said.
Alongside the criteria, the FRC has published an application form so that any RQBs, training providers, and audit firms that have already developed training can begin the process of having it assessed for approval, the release said.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.