Dear national standard-setters,
Welcome to our newsletter dedicated to keeping you up to date on the activities of the IFRS Foundation.
In this edition
- Upcoming 2024 World Standard-setters Conference in London
- International Accounting Standards Board (IASB) recent highlights:
- IFRS 18 Presentation and Disclosure in Financial Statements publication
- IFRS 19 Subsidiaries without Public Accountability: Disclosures publication
- International Sustainability Standards Board (ISSB) recent highlights:
- IFRS Sustainability Disclosure Taxonomy (ISSB Taxonomy) publication
- Inaugural Jurisdictional Guide publication
- Feedback Statement on the Consultation on Agenda Priorities publication
- ESRS–ISSB Standards Interoperability Guidance publication
- Updates on a series of strategic relationships
- News for national standard-setters
- Consultations open for comment
2024 World Standard-setters Conference in London
World Standard-setters Conference 2024 will take place in London on 23–24 September at Hilton London Canary Wharf, South Quay, Marsh Wall, London, E14 9SH.
The conference will feature Q&A sessions and panel discussions in which you will be able to hear about and discuss the IFRS Foundation’s activities. You will also have networking opportunities with fellow delegates, IFRS Foundation staff and members of IASB and ISSB.
The Conference is open to all national standard-setters. The IFRS Foundation has invited two representatives from each national standard-setter to attend in person. If you are not able to attend in London, there will be a recorded livestream of some of the sessions, with the recordings available to watch on the conference page after the conference.
To find out more about the conference agenda, visit the conference page.
IASB recent highlights
IFRS 18 Presentation and Disclosure in Financial Statements
In April 2024, the IASB published a new Standard, IFRS 18 Presentation and Disclosure in Financial Statements. IFRS 18 affects all companies applying IFRS Accounting Standards and will give investors more transparent and comparable information about companies’ financial performance, improving investment decision-making. The effective date of IFRS 18 is 1 January 2027.
Watch the IFRS 18 webcast series where IASB Chair Andreas Barckow and other IASB members explain the requirements in English, Chinese, French, Japanese, Portuguese and Spanish.
IFRS 19 Subsidiaries without Public Accountability: Disclosures
In May 2024, the IASB published a new Standard, IFRS 19 Subsidiaries without Public Accountability: Disclosures. IFRS 19 simplifies reporting systems and processes for companies by reducing the costs of preparing eligible subsidiaries’ financial statements. The effective date of IFRS 19 is 1 January 2027.
Watch the IFRS 19 webcast series for an overview of IFRS 19 and to find out about its benefits from the perspective of preparers and regulators.
ISSB recent highlights
The IFRS Sustainability Disclosure Taxonomy (ISSB Taxonomy)
On the 30 April 2024, the ISSB published the IFRS Sustainability Disclosure Taxonomy (ISSB Taxonomy), fulfilling its promise to enable investors and other capital providers to efficiently analyse sustainability-related financial disclosures.
Investors in companies using the ISSB Taxonomy will be able to search, extract and compare sustainability-related financial disclosures as the ISSB establishes its global baseline of Standards.
The ISSB Taxonomy reflects IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information, IFRS S2 Climate-related Disclosures and their accompanying guidance. The Taxonomy has been developed to help support dialogue between companies and investors—it neither introduces new requirements nor affects a company’s compliance with the Standards. Informed by market feedback, the Taxonomy enables companies to consistently tag information prepared using ISSB Standards.
The Inaugural Jurisdictional Guide and the Outline of the Regulatory Implementation Programme
The publication of the Inaugural Jurisdictional Guide at the IOSCO Annual Meeting in Athens came at a time of increasing momentum towards the establishment of the global baseline of sustainability disclosures for capital markets.
The Inaugural Jurisdictional Guide has been developed to help jurisdictions design and plan their journey to the adoption or other use of ISSB Standards and provide transparency to market participants on the path towards adoption.
Over 20 jurisdictions have already decided to use, or are taking steps to introduce, ISSB Standards in their legal or regulatory frameworks. Together, these jurisdictions account for:
- nearly 55% of global GDP;
- more than 40% of global market capitalisation; and
- more than 50% of global greenhouse gas emissions.
The Foundation has also outlined its Regulatory Implementation Programme, which summarises how the IFRS Foundation and its partners intend to support the growing number of jurisdictions wanting to make policy decisions and roadmaps for the adoption or other use of ISSB Standards.
ESRS–ISSB Standards Interoperability Guidance
The IFRS Foundation and EFRAG have published guidance material to illustrate the high level of alignment achieved between the ISSB Standards and the European Sustainability Reporting Standards (ESRS) and how a company can apply both sets of standards, including detailed analysis of the alignment in climate-related disclosures. The guidance provides practical support that explains how companies can efficiently comply with both sets of standards. Read the ESRS–ISSB Standards Interoperability Guidance.
ISSB Feedback Statement on two-year work plan
Following extensive market consultation last year, the ISSB has published the Feedback Statement on its consultation on future priorities and is now embarking on its next two-year work plan.
The ISSB’s priority is supporting the implementation of IFRS S1 and IFRS S2, which it is doing in close collaboration with several global partners such as the African Development Bank and the International Finance Corporation.
As part of its work plan, the ISSB has initiated research projects on risks and opportunities associated with biodiversity, ecosystems and ecosystem services, and human capital.
Furthermore, the ISSB is working to maintain and enhance the SASB Standards, which will help facilitate its new research projects and the implementation of IFRS S1 and IFRS S2.
Further information is available in the Feedback Statement on the Consultation on Agenda Priorities.
Updates on a series of strategic relationships
Recently, at London Climate Action Week, the ISSB provided updates on a series of strategic relationships designed to help reduce complexity in the sustainability disclosure landscape. These relationships will help deliver further harmonisation of the sustainability disclosure landscape.
The ISSB is advancing its strategic relationships with five organisations: the Global Reporting Initiative (GRI), Transition Plan Taskforce, GHG Protocol, Taskforce on Nature-related Financial Disclosures and CDP.
Global Reporting Initiative
In May 2024, the ISSB and GRI’s Global Sustainability Standards Board (GSSB) committed to jointly identify and align common disclosures to deliver a seamless sustainability reporting system. Read the announcement of the ISSB and GSSB collaboration.
This collaboration will help companies looking to meet the information needs of investors and a broader range of stakeholders.
Transition Plan Taskforce
Globally, disclosures on an entity’s plans to address any targets it has in place to transition to a lower-carbon economy—often called transition plans—are a growing proportion of corporate climate-related disclosures. IFRS S2 requires that an entity disclose information about such a plan if it has one.
To support application of these disclosure requirements and more efficiently collect information provided in the market, the ISSB plans to support work to streamline and consolidate frameworks and standards for disclosures about transition plans.
The IFRS Foundation will assume responsibility for the disclosure-specific materials developed by the Transition Plan Taskforce, with plans over the long term to tailor the materials for global applicability and full compatibility with the focus of IFRS S2 in accordance with the IFRS Foundation’s due process and mission. These materials provide guidance to support the provision of high-quality disclosures about transition plans for companies applying IFRS S2.
GHG Protocol
The IFRS Foundation and the GHG Protocol have signed an agreement to put governance arrangements in place to actively engage the ISSB in updates and decisions made in relation to GHG Protocol Corporate Standard, including appointing an ISSB representative as an observer on the GHG Protocol Independent Standards Board.
This agreement will help ensure ongoing compatibility between the work of the GHG Protocol and the ISSB to meet the needs of capital markets.
Taskforce on Nature-related Financial Disclosures
As set out in the ISSB’s feedback statement on its next two-year work plan, the ISSB has a new research project on biodiversity, ecosystems and ecosystem services.
As part of this research, the ISSB is considering how to develop some pre-existing initiatives—such as the work of the Taskforce on Nature-related Financial Disclosures—to meet the information needs of investors.
CDP
CDP is the ISSB’s key global climate disclosure partner. In June 2024, CDP opened its new platform to 75,000 organisations. IFRS S2 is the foundational baseline for CDP’s climate disclosure, and the 2024 CDP questionnaire is aligned with IFRS S2. The CDP questionnaire is an effective tool to support companies on their path to ISSB compliance.
These partnerships will improve the quality of information investors have to make decisions, provide clarity in the reporting landscape, lead to further efficiencies and minimise costs for companies preparing reports.
News for national standard-setters
IFRS Foundation updates
- The IFRS Foundation’s annual conference was held on 24–25 June 2024 in London. The conference brought together over 400 delegates from more than 60 jurisdictions. The conference showcased the latest developments from the IASB and ISSB, as well as insights from industry experts. Read about the highlights from the conference.
- The Trustees of the IFRS Foundation have announced the appointment of Michel Madelain as Managing Director of the IFRS Foundation for a two-year term beginning 9 September 2024.
- The IFRS Foundation Trustees are seeking eight new members of the IFRS Advisory Council—the strategic advisory body to the Trustees and the Foundation’s two standard-setting boards—to succeed members whose terms end on 31 December 2024.
- The IFRS Foundation has published its annual report and audited financial statements for 2023, reinforcing the Foundation’s guiding principle that improving the quality of information allows investors to make better decisions.
- The IFRS Advisory Council meeting took place on 9–10 April 2024 in London. Advisory Council members were given an update on the recent activities of the IASB and ISSB and discussed strategic initiatives at IFRS Foundation. You can watch the meeting recordings from the meeting page.
Accounting updates
- In late March 2024, the IFRS Foundation published the IFRS Accounting Taxonomy 2024. The IFRS Accounting Taxonomy enables the digital reporting of financial information prepared in accordance with IFRS Accounting Standards. Companies can use the IFRS Accounting Taxonomy to tag disclosures, making them easily accessible to investors who prefer to receive financial information digitally.
- In April 2024, the IFRS Foundation published an introductory article, Digital financial reporting—Facilitating digital comparability and analysis of financial reports. The article includes spotlights on various jurisdictions to illustrate digital financial reporting developments around the world.
- In April 2024, the IASB concluded the project on Business Combinations under Common Control and published a project summary.
- In April 2024, the IASB launched comprehensive review of accounting for intangibles. The project will assess whether the requirements of IAS 38 Intangible Assets continue to fairly reflect current business models.
- Watch a short animated video explaining what the IFRS digital taxonomies are and how the taxonomies enable companies to present information prepared in accordance with IFRS Standards in a structured computer-readable format.
- The IFRS Foundation published its Compilation of Agenda Decisions by the IFRS Interpretations Committee Volume 10, covering the period November 2023 to April 2024.
- In May 2024, the IASB issued amendments to the classification and measurement requirements in IFRS 9 Financial Instruments. The amendments will address diversity in accounting practice by making the requirements in IFRS 9 more understandable and consistent.
- At its meeting in June 2024, the IASB unanimously decided to move forward with finalising the revision of IFRS Practice Statement 1 Management Commentary by making targeted refinements to its proposals set out in the Exposure Draft Management Commentary.
- The IASB recently concluded its Post-implementation Review of the impairment requirements in IFRS 9 Financial Instruments. Access the Post-Implementation Review of IFRS 9 Financial Instruments—Impairment Project Summary and Feedback Statement.
- In June 2024, the IASB began the Post-implementation Review of IFRS 16 Leases. The IASB is conducting outreach with consultative groups and other stakeholders to help inform a request for information and expects to publish that request for information in the first half of 2025.
- In July 2024, the IASB issued Annual Improvements to IFRS Accounting Standards—Volume 11, which includes clarifications, simplifications, corrections and changes aimed at improving the consistency of several IFRS Accounting Standards. This document is available to IFRS Digital subscribers.
- The IASB recently closed the consultation period for the proposals to amend IFRS 3 Business Combinations. In this Investor Perspectives article, IASB member Zach Gast discusses how the proposals in Exposure Draft Business Combinations—Disclosures, Goodwill and Impairment will enable investors to better assess companies’ acquisitions. IASB members and technical staff also discussed the proposals to improve the impairment test for goodwill and other aspects of the Exposure Draft in a webcast series.
- The Accounting Standards Advisory Forum (ASAF) meetings took place on 25–26 March and 8–9 July 2024 in London. ASAF members discussed several standard-setting and other issues, primarily on the IASB’s work plan. You can watch the meeting recordings from the meeting page.
- The Emerging Economies Group (EEG) meeting took place 28–29 May 2024 in Taiyuan, China. EEG members discussed the IASB’s standard-setting projects and accounting issues topical in their jurisdictions. You can watch the meeting recordings from the meeting page.
Sustainability updates
- The Sustainability Standards Advisory Forum (SSAF) meeting took place on 11 June 2024. SSAF members discussed the IFRS Sustainability Disclosure Taxonomy, enhancements to the SASB Standards and involving the SSAF in the ISSB’s research projects. You can watch the meeting recordings from the meeting page.
- The Transition Implementation Group on IFRS S1 and IFRS S2 (TIG) meeting took place on 13 June 2024. TIG members discussed the revision of preceding period estimated amounts when estimating information from an entity in the value chain, and application of the requirements on comparative information when acquiring or disposing of a subsidiary. Watch the recording on the TIG meeting page.
Consultations open for comment
Accounting consultations
- The IASB published for public comment Exposure Draft Contracts for Renewable Electricity. Comments will be accepted until 7 August 2024. Watch the webcast in which IASB staff discuss proposals that aim to for financial statements to more faithfully reflect the effects of renewable electricity contracts on a company.
- The IFRS Interpretations Committee published for public comment a tentative agenda decision Classification of Cash Flows related to Variation Margin Calls on ‘Collateralised-to-Market’ Contracts (IAS 7). Comments will be accepted until 19 August 2024.
- The IASB published for public comment Proposed IFRS Taxonomy Update 2024: IFRS 18 Presentation and Disclosure in Financial Statements. Comments will be accepted until 3 September 2024.
- The IASB published for public comment Exposure Draft Translation to a Hyperinflationary Presentation Currency. Comments will be accepted until 22 November 2024.
- The IASB published for public comment Exposure Draft Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures. Comments will be accepted until 27 November 2024.
- The IASB published for public comment Exposure Draft Climate-related and Other Uncertainties in the Financial Statements. Comments will be accepted until 28 November 2024.
These consultations can be found in our open for comment section.
If you have any questions regarding the cooperation of the IFRS Foundation with national standard-setters, please reach out to Elena Kostina, IASB Technical Staff, via the contact us button below.
