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ISSB sets up transition implementation group on IFRS S1 and IFRS S2

Sep 14, 2023

On September 14, 2023, the International Sustainability Standards Board (ISSB) announced the membership of the 'Transition Implementation Group on IFRS S1 and IFRS S2’ (TIG).

The TIG informs the ISSB about potential implementation questions that could arise when companies implement the new standards IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures.

The purpose of the TIG is to solicit, analyse and discuss stakeholder questions arising from implementation of the new standards, to inform the ISSB about those implementation questions, which will help the ISSB determine what, if any, action will be needed to address those questions, and to provide a public forum for stakeholders to learn about the new Standards from others involved with implementation.

Review the list of members on the IFRS Foundation website


IASB Member Patrina Buchanan explains the Request for Information: Post-implementation Review of IFRS 15

Aug 31, 2023

On August 31, 2023, IASB Member Patrina Buchanan explains the Request for Information: Post-implementation Review of IFRS 15. The Accounting Standard was developed jointly with the US Financial Accounting Standards Board and came into effect in 2018. It was created to improve the quality and comparability of revenue information provided to investors globally.

The Accounting Standard introduced a comprehensive and robust framework for the recognition, measurement and disclosure of revenue that applies to a wide range of transactions and industries. It sets out a single coherent approach to recognizing and measuring revenue that provides useful information to investors about the nature, amount, timing and uncertainty of revenue and cash flows arising from a company’s contracts with customers.

As part of the IASB’s usual post-implementation review (PIR) process for Accounting Standards, it will assess whether the requirements are working as intended. The deadline for comments is October 27, 2023.

Re­fer to the video on the IFRS website.

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ISSB Vice-Chair Sue Lloyd delivers keynote speech on the current agenda of the ISSB and cooperation with EU Institutions

Aug 30, 2023

On August 30, 2023, the Vice-Chair of the International Sustainability Standards Board, Sue Lloyd delivered the keynote address at Brussels, providing a high-level overview of what the inaugural Standards—IFRS S1 and IFRS S2—cover, how they have been received since they were issued in June and how they relate to the European Sustainability Reporting Standards.

She discussed the following five aspects:

  • The need for global sustainability disclosures: The International Sustainability Standards Board (ISSB) Standards are being developed to enhance investor-company dialogue through by consolidating and inheriting the resources of other investor-focused initiatives in order to reduce fragmentation.
  • Overview of IFRS S1 and IFRS S2: Ms. Lloyd gave an overview of the first two ISSB standards, IFRS S1, the general requirements standard, that provides a set of overarching disclosure requirements designed to enable companies to communicate to investors about the sustainability-related risks and opportunities they face over the short, medium and long term, and IFRS S2 that sets out specific climate-related disclosures and is designed to be used with IFRS S1.
  • Support for the ISSB standards: Ms. Lloyd noted the strong support from the investor community internationally for the consistency and comparability of information the ISSB standards will provide for, the announcement from the Financial Stability Board that as a result of the ISSB standards the work of the Task Force on Climate-related Financial Disclosures (TCFD) is complete, and endorsement of the standards by the International Organization of Securities Commissions (IOSCO).
  • Cooperation with the European Union: The ISSB welcomes the commitment from the European Commission and European Financial Reporting Advisory Group (EFRAG) to support the need for international consistency. The ISSB's work with European Commission and EFRAG is now focused on how to jointly illustrate the interoperability between the standards.
  • Next steps for the ISSB: The ISSB will analyze closely the views of the key stakeholders on the next two-year agenda for the ISSB. Stakeholders have been asked to comment on the strategic direction and balance of the ISSB’s activities; the criteria for assessing which sustainability-related matters to prioritize; and the scope and structure of potential new research and standard-setting projects.

Access the speech on the IFRS website.

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Proposed general requirements for sustainability assurance engagements – An invitation to engage, learn, and share insights

Aug 29, 2023

On August 29, 2023, the International Auditing and Assurance Standards Board (IAASB) announced a range of engaging webinars and events to enhance understanding of the newly proposed International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements—and encourage participation in the public consultation.

  • Amplified Engagement through Stakeholder Survey: Recognizing the diverse perspectives and levels of expertise within the stakeholder community, an alternative avenue for feedback has been developed. In addition to the comprehensive Explanatory Memorandum and Response Template, the IAASB has created a stakeholder survey. This user-friendly tool allows the IAASB to obtain the views of stakeholders who may not ordinarily respond to IAASB consultations, including preparers of sustainability information, those with the oversight of its preparation, investors and other users of the sustainability information, sustainability reporting standard setters and members of the academic community. Survey responses will be aggregated and analyzed in conjunction with other feedback received.
  • Webinars for Enhanced Understanding: Learn more about ISSA 5000 at dedicated IAASB webinars for practitioners and regulators.
  • Empowering Global Exchange at Notable Events: Events leading to opportunities for learning, sharing, and networking.

Re­view the webinar schedule on IAASB’s website.

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The Importance of a Comprehensive Risk Assessment by Auditors and Management

Aug 25, 2023

On August 25, 2023, the Securities and Exchange Commission (SEC) posted a statement highlighting the importance of a comprehensive risk assessment by auditors and management. Management’s and auditors’ risk assessment processes are critical to the decisions regarding financial reporting and the effectiveness of internal control over financial reporting.

This statement discusses management’s obligation to:

  • take a holistic approach when assessing information about the business and avoid the potential bias toward evaluating problems as isolated incidents, in order to timely identify risks, including entity-level risks;
  • design processes and controls that are responsive to identified risks;
  • effectively identify information that issuers are required to communicate to investors.

Additionally, it discusses auditors’ responsibilities as gatekeepers to hold management accountable in the public interest.

Re­view the statement on SEC’s website.

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Key takeaways from the ISSB conference on integrated thinking and reporting

Aug 23, 2023

On August 23, 2023, the International Sustainability Standards Board (ISSB) hosted the “IFRS Integrated Thinking & Reporting Conference” that brought together industry leaders, standard setters, and academics to share insights and best practices in integrated thinking and reporting.

The five key takeaways from the conference are:

  • Integrated thinking and reporting improve engagement and dialogue between investors and investees.
  • Integrated thinking and reporting are integral to the IFRS Foundation’s development of a comprehensive global corporate reporting system.
  • Integrated thinking and reporting improve performance.
  • Integrated thinking and reporting can be a natural link between investor- and impact-focused sustainability reporting.
  • Integrated thinking and reporting are complementary to the ISSB standards.

Review the summary on the Integrated Reporting website.


IASB sets out accounting requirements for when a currency is not exchangeable

Aug 15, 2023

On August 15, 2023, the International Accounting Standards Board (IASB) issued amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates that will require companies to provide more useful information in their financial statements when a currency cannot be exchanged into another currency.

The amendments in Lack of Exchangeability (Amendments to IAS 21) amend IAS 21 to:

  • Specify when a currency is exchangeable into another currency and when it is not — a currency is exchangeable when an entity is able to exchange that currency for the other currency through markets or exchange mechanisms that create enforceable rights and obligations without undue delay at the measurement date and for a specified purpose; a currency is not exchangeable into the other currency if an entity can only obtain an insignificant amount of the other currency.
  • Specify how an entity determines the exchange rate to apply when a currency is not exchangeable — when a currency is not exchangeable at the measurement date, an entity estimates the spot exchange rate as the rate that would have applied to an orderly transaction between market participants at the measurement date and that would faithfully reflect the economic conditions prevailing.
  • Require the disclosure of additional information when a currency is not exchangeable — when a currency is not exchangeable an entity discloses information that would enable users of its financial statements to evaluate how a currency’s lack of exchangeability affects, or is expected to affect, its financial performance, financial position and cash flows.

An entity applies the amendments for annual reporting periods beginning on or after January 1, 2025. Earlier application is permitted.

An entity does not apply the amendments retrospectively. Instead, an entity recognizes any effect of initially applying the amendments as an adjustment to the opening balance of retained earnings when the entity reports foreign currency transactions. When an entity uses a presentation currency other than its functional currency, it recognizes the cumulative amount of translation differences in equity.

Access the press release and the webcast explaining the amendments on the IFRS website.

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IFAC Calls on G20 Leaders to Lead on Sustainable and Inclusive Growth

Aug 07, 2023

On August 7, 2023, the International Federation of Accountants (IFAC) released "Working Together for Sustainable and Inclusive Growth: G20 Call to Action 2023" urging G20 leaders to approach sustainability, the public sector, small- and medium-sized entities (SMEs), and education with an inclusive approach to make sure that the opportunities of today and tomorrow are shared, and that economic and social development are truly sustainable.

IFAC calls on G20 leaders to:

  • Make Sustainability A Reality, Not Just a Goal
  • Support Public Financial Management and Fight Corruption
  • Create an Environment for SME Growth and Innovation
  • No Inclusive Growth without Education

Review the call to action on the IFAC website.


IASB publishes editorial corrections

Aug 04, 2023

On August 4, 2023, the IASB published a first set of editorial corrections for 2023.

The corrections relate to the illustrative examples accompanying the revised version of IFRS 3 Business Combinations.

Editorial corrections do not change the meaning or application of pronouncements, but instead correct inadvertent errors.

Re­fer to the editorial corrections on the IFRS website.

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IAASB consults on proposed global sustainability assurance standard

Aug 03, 2023

On August 3, 2023, the International Auditing and Assurance Standards Board (IAASB) issued a proposed International Standard on Sustainability Assurance (ISSA) 5000 “General Requirements for Sustainability Assurance Engagements”.

The proposed ISSA 5000 is a principles-based, overarching standard suitable for both limited and reasonable assurance engagements on sustainability information reported across any sustainability topic. The IAASB drafted the standard to work with sustainability information prepared under any suitable reporting framework. The proposed standard is profession agnostic, supporting its use by both professional accountant and non-accountant assurance practitioners.

Comments on the proposed ISSA are requested by December 1, 2023.

Re­view the exposure draft and the additional supporting material on IAASB’s website.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.