Each quarter, we provide a summary of newly effective and forthcoming standards as well as other significant accounting and financial reporting developments. This edition covers current developments in the quarter ended on September 30, 2021.

All companies are facing climate-related risks and opportunities and are making strategic decisions in response – including around their transition to a low-carbon economy. Even if the climate-related risk is deemed as having minimal financial statement impact to a company today, this may change quickly as a result of regulation, strategic decisions, or shifts in climate patterns. Our Climate change financial reporting resource centre is designed to help companies to identify the potential financial statement impacts for their businesses under the existing IFRS Standards.

In this quarter, the IASB published an exposure draft Initial Application of IFRS 17 and IFRS 9 – Comparative Information proposing a narrow-scope amendment to IFRS 17 Insurance Contracts to address one-time classification differences that may arise in the comparative information that insurance entities present on initial application of IFRS 17 and IFRS 9 Financial Instruments. The IASB requested feedback on the exposure draft by September 27, 2021.

A number of new requirements are effective from January 1, 2021. Further information on these new requirements is provided in the section ‘Requirements effective in 2021’.

In this second year of the COVID-19 coronavirus pandemic, the impacts and risks for companies are likely to be changing. COVID-19 recovery is uneven globally and is presenting a variety of challenges and risks from economic uncertainty to changes in consumer demand, disrupted supply chains and staff shortages, new hybrid working patterns, the ending of government support packages, and increased merger and acquisitions activity. Our Covid-19 financial reporting resource centre provides regularly updated information on potential accounting and disclosure implications for companies. Our COVID-19 supplement to our Illustrative disclosures and Illustrative disclosures for banks illustrate disclosure examples related to accounting issues arising from the COVID-19 coronavirus pandemic.