The International Sustainability Standards Board (ISSB), on 26 June 2023, issued the global sustainability disclosure standards- IFRS S1, General Requirements for Disclosure of Sustainability-related Financial Information (IFRS S1) and IFRS S2, Climate-related Disclosures (IFRS S2) with an aim to put sustainability reporting on an equal footing with financial reporting and facilitate the much-needed connectivity between sustainability-related financial information and the financial statements. The standards provide a clear idea of what companies need to report to meet the needs of global capital markets – providing investors with globally comparable information. Although they are effective from 1 January 2024, but it will be for individual jurisdictions to decide whether and when to adopt. This edition of the Accounting and Auditing Update (AAU) contains an article on this topic which aims to provide a brief overview and the impact of the global sustainability disclosure standards.
The European Securities and Markets Authority (ESMA) publishes extracts from its confidential database of enforcement decisions on financial statements with the aim of strengthening the supervisory convergence and providing issuers and users of financial statements with relevant information on the appropriate application of the International Financial Reporting Standards (IFRS). Recently, ESMA published its 27th extract from the European Enforcers Coordination Sessions (EECS) database of enforcements (the report). The decisions published are based on the IFRS requirements and refers to complex accounting issues or issues that could lead to different applications of IFRS. The report covers decisions relating to financial instruments, climate related matters, operating segments disaggregation of revenue and disclosures relating to leases. Our second article aims to highlight the key decisions published in the report.
As is the case each month, we have also included a regular round-up of some recent regulatory updates in India and internationally.
We would be delighted to receive feedback/suggestions from you on the topics we should cover in the forthcoming editions of the AAU.
For more information on this update, please write to aaupdate@kpmg.com.
