March 2022

2022 IFRS Accounting Taxonomy issued

Mar 24, 2022

On March 24, 2022, the IFRS Foundation issued its 2022 IFRS Accounting Taxonomy. The IFRS Taxonomy enables electronic reporting of financial information prepared in accordance with IFRS Accounting Standards.

The 2022 IFRS Accounting Taxonomy is con­sis­tent with IFRSs as issued by the IASB at January 1, 2022, including those issued but not yet effective. The 2022 IFRS Taxonomy also in­cor­po­rates the three changes made to the IFRS Taxonomy in 2021 re­flect­ing amended IFRSs and changes to the IFRS Accounting Taxonomy’s technology.

Review the press release and 2022 IFRS Accounting Taxonomy page on the IASB's website.

Accounting and reporting implications of the situation in Ukraine

Mar 09, 2022

On March 9, 2022, Ac­coun­tancy Europe has released an article, 'War in Ukraine – what European ac­coun­tants need to know'. With the EU and in­di­vid­ual countries, including the United States and Canada imposing sanctions, ac­coun­tants need to consider how these, and other con­se­quences of the war, affect their ac­tiv­i­ties.

The article on the Ac­coun­tancy Europe website draws their attention to points of alert on accounting, audit, and reporting as well as anti-money laun­der­ing and cy­ber­se­cu­rity. In addition, the link at the top of the article leads to an overview of the overview of responses from Ac­coun­tancy Europe members and national ac­coun­tancy bodies, including in other languages.

AcSB endorses Initial Application of IFRS 17 and IFRS 9―Comparative Information (Amendment to IFRS 17)

Mar 01, 2022

The amendment is now in Part I of the CPA Canada Handbook – Accounting. This amendment adds a transition option relating to comparative information about financial assets presented on initial application of IFRS 17 to improve the usefulness of the information presented. IFRS 17, including this amendment, is effective for annual reporting periods beginning on or after January 1, 2023.

Review the effective dates for new standards on the AcSB's website.

Australian Accounting Standards Board research into intangible assets

Mar 14, 2022

In March 2022, the Staff of the Australian Accounting Standards Board (AASB) published "Intangible Assets: Reducing the Financial Statements Information Gap through Improved Disclosures".

The paper aims to facilitate discussion of possible solutions to a perceived financial statements information gap relating to intangible assets, focusing on disclosures about unrecognized internally generated intangible assets that could be made in financial statements, having regard to costs and benefits. It considers:

  • a spectrum of possible disclosures, whether of a financial (cost or fair value) or non-financial (quantitative, non-quantitative or narrative) nature, or a combination of all or some thereof, that could be made in financial statements;
  • the types of entities that should be subject to the disclosures;
  • whether the disclosures should be mandated or encouraged; and
  • how a standard-setting project could be structured and progressed to achieve timely improvements to disclosures.

As a first step, the paper concludes that consideration could be given to making improvements to the current approach to disclosures about unrecognized internally generated intangible assets by publicly-accountable for-profit private-sector entities.

Review the staff paper on the AASB's website.

CAQ alert 2022-01: Addendum to November 6, 2021 International Practices Task Force Document for Discussion: Monitoring Inflation in Certain Countries

Mar 16, 2022

On March 16, 2022, the Center for Audit Quality (CAQ) issued an addendum to the November 6, 2021 International Practices Task Force Document for Discussion: Monitoring Inflation in Certain Countries to provide an update regarding recent increases in Turkey’s inflation rates.

Review the alert on the CAQ's website.

Financial reporting considerations related to the Russia-Ukraine War

Mar 17, 2022

The geopolitical situation in Eastern Europe intensified on February 24, 2022, with Russia’s invasion of Ukraine. The war between the two countries continues to evolve as military activity proceeds and additional sanctions are imposed. In addition to the human toll and impact of the events on entities that have operations in Russia, Ukraine, or neighboring countries (e.g. Belarus) or that conduct business with their counterparties, the war is increasingly affecting economic and global financial markets and exacerbating ongoing economic challenges, including issues such as rising inflation and global supply-chain disruption.

Because of its broader impact on these macroeconomic conditions, many entities globally may need to consider the effect of the war on certain accounting and financial reporting matters. The degree to which entities are or will be affected by them largely depends on the nature and duration of uncertain and unpredictable events, such as further military action, additional sanctions, and reactions to ongoing developments by global financial markets.

Political events and sanctions are continually changing and differ across the globe. Whilst this alert does not address such activities specifically, it is intended to raise awareness of some of the key impacts of the Russia-Ukraine war that entities need to consider. These include:

  • Interruptions or stoppage of production in affected areas and neighboring countries.
  • Damage or loss of inventories and other assets.
  • Closure of roads and facilities in affected areas.
  • Supply-chain and travel disruptions in Eastern Europe.
  • Volatility in commodity prices and currencies.
  • Disruption in banking systems and capital markets.
  • Reductions in sales and earnings of business in affected areas.
  • Increased costs and expenditures.
  • Cyberattacks.

Review our Global firm's IFRS in Focus — Financial reporting considerations related to the Russia-Ukraine War.

IASB Chair discusses climate matters and existing and future standards

Mar 16, 2022

On March 16, 2022, the International Accounting Standards Board (IASB) released the speech given by IASB Chair Andreas Barckow at the ICGN conference on global sustainability standards. In his speech, he discussed how existing IFRS can and must be used to report on certain climate matters and what possible future standards might add.

Mr. Barckow began his speech by pointing out what the existing, principles-based standards already require: consideration of every emerging risk (be it climate-related or not) and deciding how these issues may affect the measurement of assets and liabilities as well as consideration of disclosures required to enable users to understand the effect of some events and conditions on the company’s financial statements. Examples he cited included the recognition and measurement of impairment losses on tangible and intangible assets, the recognition and measurement of provisions for government levies, remediation of environmental damage and onerous contracts, and the measurement of loan contracts with climate-related targets. Events and circumstances that led to the recognition of an impairment loss need to disclosed as well as key assumptions made.

However, Mr. Barckow acknowledged, there is a widespread demand for more disclosure on sustainability. He therefore turned to the future of standard-setting. In this context, Mr. Barckow pointed to two developments: the IASB's agenda consultation and the cooperation with the ISSB. He noted that at its March and April meetings, the IASB will continue deliberating feedback on its agenda consultation to decide whether and, if so, what more it could do about the accounting for climate-related risks in the financial statements. This would include considering how the IASB's climate education material has led to better covering of the implications of sustainability matters in the financial statements.

Finally, Mr. Barckow turned to what he called "virtuous cycle of standard-setting". While the IASB focuses on the financial statements, which reflect transactions and events that have taken place up until the reporting date with some assumptions about the future to the extent that they relate to assets and liabilities recognized, the ISSB standards will require disclosure of information about the sustainability-related risks and opportunities that affect the company’s future cashflows and business model and, thus, its enterprise value — matters that again affect future financial statements. Mr. Barckow concluded:

Together, the two boards can help investors connect these two complementary information sets into a single, holistic package to foster transparency, accountability and efficiency in global capital markets.

Review the full speech on the IASB's website.

IFRS Foundation and GRI plan to align their sustainability reporting requirements

Mar 24, 2022

On March 24, 2022, the IFRS Foundation and Global Reporting Initiative (GRI) have signed a Memorandum of Understanding stating that their respective standard-setting boards, the International Sustainability Standards Board (ISSB) and the Global Sustainability Standards Board (GSSB), will seek to coordinate their work programmes and standard-setting activities.

By working together, the IFRS Foundation and GRI will cover two aspects of international sustainability reporting — investor-focused capital market standards set by ISSB and multi-stakeholder-focused sustainability reporting requirements set by the GSSB. The press release stresses the importance of compatibility:

The agreement [...] represents the latest development in efforts to consolidate or align multiple international initiatives covering sustainability reporting into a more cohesive approach for the benefit of companies, investors and society at large.

Review the press release on the IFRS Foundation's website.

IFRS Foundation Monitoring Board meets with IFRS Foundation Trustees

Mar 04, 2022

On March 4, 2022, the Chairman of the IFRS Foundation Monitoring Board (MB), Jean-Paul Servais, released a short report on the meeting with the IFRS Trustees and the leadership of the International Accounting Standards Board (IASB) and International Sustainability Standards Board (ISSB) in Frankfurt.

The MB discussed the ongoing activities of the IASB, the findings of its agenda consultation and the work on digital financial reporting. The MB members also discussed the progress made by the ISSB in developing a comprehensive global baseline of high-quality sustainability disclosure standards to meet investor needs.

Review the report on the IOSCO website

ISSB exposure draft of climate-related disclosures

Mar 31, 2022

On March 31, 2022, the Chair and Vice-Chair of the International Sustainability Standards Board (ISSB) have published the exposure draft "Climate-related Disclosures" that builds on the TRWG prototype of the same name. The resulting standard would be the first thematic standard of the ISSB. Comments on the proposal are requested by July 29, 2022.



In November 2021, the IFRS Foundation announced the creation of its new International Sustainability Standards Board (ISSB) tasked with developing a comprehensive global baseline of high-quality sustainability disclosure standards to meet investors’ information needs.

In order to facilitate a running start of the ISSB, a Technical Readiness Working Group (TRWG) had been created in March 2021. Concomitantly with the announcement of the formation of the ISSB, the TRWG published a Climate-related disclosures prototype.

In an additional meeting in March 2022, the Due Process Oversight Committee (DPOC) confirmed that it does not object to the ISSB Chair and Vice-Chair publishing the exposure draft Climate-Related Disclosures that builds on the TRWG prototype before the ISSB is quorate.

The proposed standard on climate related disclosures published today is accompanied by an exposure draft of a standard covering general requirements for sustainability-related disclosures.


Key proposals

The main proposals in ED/2022/S2 Climate-related Disclosures generally reflect the proposals in the prototype and are structured around the four TCFD pillars of governance, strategy, risk management, and metrics and targets. Some changes were made to improve specificity and clarity with some added disclosure requirements. One noticeable change regards the internationalization of metrics that referred to specific jurisdictions. The proposals cover the following aspects of climate-related disclosures:

  • Objective: The proposed objective of the standard is to require an entity to disclose information about its exposure to climate-related risks and opportunities that would enable users of an entity’s general purpose financial reporting to assess the effects of significant climate-related risks and opportunities on the entity’s enterprise value, to understand how the entity’s use of resources support the entity’s response to significant climate-related risks and opportunities, and to evaluate the entity’s ability to adapt to significant climate-related risks and opportunities.
  • Scope: The standard would apply to climate-related risks that the entity is exposed to, including physical risks and transitional risks, and to climate-related opportunities available to the entity.
  • Governance: Under the proposed standard, an entity would disclose information that enables users of general purpose financial reporting to understand the governance processes, controls and procedures used to monitor and manage climate-related risks and opportunities. This would include information about the governance body or bodies with oversight of climate-related risks and opportunities, and a description of management’s role regarding climate-related risks and opportunities.
  • Strategy: An entity would disclose information that enables users of general purpose financial reporting to understand the strategy for addressing climate-related risks and opportunities. This would include information about:
    • the significant climate-related risks and opportunities that it reasonably expects could affect its business model, strategy and cash flows, its access to finance and its cost of capital,
    • the effects of them on its business model, value chain, strategy and decision-making, financial position, financial performance and cash flows, and
    • the climate resilience of its strategy to significant physical risks and significant transition risks.
  • Risk management: An entity would disclose information that enables users of general purpose financial reporting to understand how climate-related risks are identified, assessed, and managed. This would include information about:
    • the process, or processes, used to identify climate-related risks and opportunities, and climate-related risks for risk management purposes,
    • the process, or processes, used to identify, assess and prioritise climate-related opportunities;
    • the process, or processes, it uses to monitor and manage the climate-related risks, and 
    • the extent to which and how the climate-related risk identification, assessment and management process, or processes, are integrated into the entity’s overall risk management process and the entity’s overall management process.
  • Metrics and targets: An entity would disclose information that enables users of general purpose financial reporting to understand the entity’s performance in measuring, monitoring and managing climate-related risks and opportunities. This would include information about cross-industry metric categories, industry-based metrics other metrics used by the board or management to measure progress towards its targets, and targets set by the entity to mitigate or adapt to climate-related risks or maximize climate-related opportunities so that users of general purpose financial reporting can understand how the entity assesses its performance and its progress towards the targets it has set.

The deadline for submitting comments on these proposals is July 29, 2022.

The ISSB has also developed a survey to support stakeholders in responding to the proposals in the exposure draft as an alternative or in addition to a comment letter.


Transition and effective date

The standard would be applied prospectively. Comparative information would not be required to be disclosed in the first period in which an entity applies the proposed standard.

The Board intends to decide on the effective date after exposure. Earlier application would be permitted.


Additional information

Review the following additional information on the IFRS Foundation website and on IAS Plus:

The press release also notes that the ISSB's proposals will be presented in two live webinars on April 28 at 9am and 5pm BST.

In addition to publishing its first two exposure draft, the ISSB has also published a statement on its plans for building upon the SASB standards and for embedding SASB’s industry-based standards development approach into the ISSB’s standards development process. The statement discusses the industry-based approach to standards development, the inclusion of SASB standards in the exposure drafts published today, the commitment to improving the international applicability of SASB standards, the starting point for ISSB industry-based requirements, and current SASB projects. The statement also notes that the ISSB actively encourages preparers and investors to continue to provide full support for and to use the SASB Standards in this transition phase.

Review the full statement on the IFRS Foundation's website.


Correction list for hyphenation

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