FRC committee recommends use of IFRS sustainability standards in UK

The UK Sustainability Disclosure Technical Advisory Committee endorses the first two IFRS sustainability disclosure standards for use, with minor amendments proposed.

The UK Financial Reporting Council (FRC) published the Sustainability Disclosure Technical Advisory Committee’s (TAC’s) final recommendations that endorse for use the first two IFRS sustainability disclosure standards in the UK, according to an FRC news release.

In recommending use of the standards to the Secretary of State for Business and Trade, TAC proposed minor amendments to IFRS S1, General Requirements for Disclosure of Sustainability-related Financial Information, and IFRS S2, Climate-related Disclosures, detailed in the committee’s final recommendations.

The proposed amendments include extending “climate first” reporting relief from one to two years, to allow time to clarify how entities can align this standard with existing sustainability-related disclosure requirements under the current UK legal framework.

IOSCO launches network to support sustainability standard adoption

To facilitate the adoption or other use of IFRS S1 and S2 globally, the International Organization of Securities Commission (IOSCO) launched its Growth and Emerging Markets (GEM) Committee Network for Adoption, according to an IFRS news release.

The initial cohort of members, representing 31 jurisdictions, accounts for the majority of emerging market jurisdictions’ market capitalisation, the release said, and includes jurisdictions that have already announced plans for adoption and others at an earlier stage in their planning.

IFAC CEO calls for collaboration to manage IESSA complexity

Following the recently finalised International Ethics Standard on Sustainability Assurance (IESSA), the International Federation of Accountants (IFAC) announced its commitment to collaborating with the International Ethics Standards Board for Accountants (IESBA) to address the practical challenges identified during the standard’s development.

Practicability challenges remain after several months of consultation, IFAC CEO Lee White said in a news release. White proposed a summit early in the new year between IESBA; IFAC and representatives of its members; and other key stakeholders, including users of the standards and practitioners.

“This will be an opportunity to continuously improve consultation and engagement, and to facilitate further dialogue,” he said. “The aim would be to ensure the newly approved IESSA is both fit for purpose and firmly grounded in a principles-based approach, setting the stage for its successful global adoption and implementation.”

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

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