It aims to protect fundamental rights, democracy, the rule of law and environmental sustainability from high-risk AI, while boosting innovation and establishing Europe as a leader in the field. The regulation establishes obligations for AI based on its potential risks and level of impact.

The new rules ban certain AI applications that threaten citizens’ rights, including biometric categorization systems based on sensitive characteristics and untargeted scraping of facial images from the internet or CCTV footage to create facial recognition databases.

The regulation is still subject to a final lawyer-linguist check and is expected to be finally adopted before the end of the legislature. The law also needs to be formally endorsed by the Council. It will enter into force twenty days after its publication in the Official Journal and be fully applicable 24 months after its entry into force, except for bans on prohibited practices, which will apply six months after the entry into force date.

Access the press release on the EU’s website.

The final rules reflect the Commission’s efforts to respond to investors’ demand for more consistent, comparable, and reliable information about the financial effects of climate-related risks on a registrant’s operations and how it manages those risks while balancing concerns about mitigating the associated costs of the rules.

According to a fact sheet posted by the SEC, the final rules will require a registrant to disclose, among other things:

• material climate-related risks;
• activities to mitigate or adapt to such risks;
• information about the registrant's board of directors' oversight of climate-related risks and management’s role in managing material climate-related risks; and
• information on any climate-related targets or goals that are material to the registrant's business, results of operations, or financial condition.

In a major change to the proposed rule, the SEC has decided to remove the requirement to disclose Scope 3 greenhouse gas (GHG) emissions and only require disclosure of Scope 1 and/or Scope 2 GHG emissions on a phased-in basis by certain larger registrants when those emissions are material.

All domestic and foreign registrants, except for asset-backed issuers, must provide the

disclosures. smaller reporting companies (SRCs), emerging growth companies (EGCs), and nonaccelerated filers are exempt from the Scope 1 and Scope 2 GHG emission disclosure requirements but must provide all other disclosures.

The final rules will become effective 60 days after publication in the Federal Register, and compliance will be phased in from 2025 to 2033.

Access the final rule,  fact sheet and  press release on the SEC’s website.

As per its statement, the CAQ believes that the recent roundtable conducted by the Public Company Accounting Oversight Board (PCAOB) regarding its proposal on company noncompliance with laws and regulations (NOCLAR) fell short of the principles of transparency and accountability essential for effective public policy development.

“Today’s NOCLAR roundtable was a missed opportunity for the PCAOB to further understand the views highlighted in numerous comment letters from engaged stakeholders,” said Julie Bell Lindsay, Chief Executive Officer, CAQ. “Not only did the roundtable surface disagreement as to the actual scope or intention of the proposal, but we are concerned that the lack of diverse stakeholder representation – particularly from investors and audit committees, two important audiences – resulted in dialogue that did not meaningfully address stakeholder concerns. Given the discussion at the roundtable, we believe that the appropriate response is to re-propose the standard, with an economic analysis, to begin to address these concerns.” 

Access the statement on the CAQ website and the roundtable on the PCAOB’s website.

The series on perspectives papers is now as follows:

• The Case for Realigning Reporting Standards with Modern Value Creation(September 2021)
• Human Capital Introspective(May 2022)
• Rethinking Brand Value(September 2022)
• Deciphering Technology(July 2023)
• Data and Valuation(March 2024)

Access the press release on the IVSC’s website.

Below is an analysis of all changes made to the work plan since our last analysis on January 29, 2024

Standard-setting projects

• Disclosure initiative — Subsidiaries without public accountability: Disclosures — A final standard is now expected in May 2024 (previously April 2024)

Maintenance projects

• Addendum to the Exposure Draft Third edition of the IFRS for SMEs Accounting Standard — The exposure draft is now expected in April 2024 (previously Q2 2024)
• Annual Improvements to IFRS Accounting Standards — Final amendments of the following projects are expected in Q3 2024:
  • Cost Method (Amendments to IAS 7)
  •  Derecognition of Lease Liabilities (Amendments to IFRS 9)
  • Determination of a ‘De Facto Agent’ (Amendments to IFRS 10)
  • Disclosure of Deferred Difference between Fair Value and Transaction Price (Amendments to Guidance on implementing IFRS 7)
  • Gain or Loss on Derecognition (Amendments to IFRS 7)
  • Hedge Accounting by a First-time Adopter (Amendments to IFRS 1)
  • Introduction and Credit Risk Disclosures (Amendments to Guidance on implementing IFRS 7)
  • Transaction Price (Amendments to IFRS 9)

•  Climate-related and Other Uncertainties in the Financial Statements — A decision on the project direction is now expected in April 2024 (previously Q2 2024) 
• Power purchase agreements — The exposure draft is now expected in May 2024 (previously Q2 2024) 
• Updating the Subsidiaries without Public Accountability: Disclosures Standard — The exposure draft is now expected in Q3 2024 (previously Q2 2024) 
• Use of a Hyperinflationary Presentation Currency by a Non-hyperinflationary Entity (IAS 21) — The exposure draft is now expected in Q3 2024 (previously H2 2024)

Research projects

• Business Combinations under Common Control — A project summary is now expected in April 2024 (previously Q2 2024)
• Post-implementation Review of IFRS 9 — Impairment — A feedback statement (previously a project summary) is now expected in Q3 2024 (previously H2 2024)

Governance 

• ISSB Consultation on Agenda Priorities — The next project step will now be a feedback statement to be published in Q2 2024.

Other projects

• IFRS Sustainability Disclosure Taxonomy— The taxonomy is now expected in April 2024 (previously Q2 2024).

The above is a faithful comparison of the IASB and ISSB work plan on 29 January 2024 and 29 February 2024.

For access to the current work plan at any time, please click here.

The podcast highlights some of the projects that were discussed during the meeting, including:

• updates to the work plan;
• post-implementation review of IFRS 15; 
• rate-regulated activities;
• second comprehensive review of the IFRS for SMEsAccounting Standard.

The podcast can be accessed here on the IFRS Foundation website.

One report provides an update on developments in international tax reform, while the other report provides an update on the work of the Inclusive Forum on Carbon Mitigation Approaches (IFMCA).

The report on international tax reform covers the following topics:

• The work on a two-pillar solution to address the tax challenges arising from the digitalization and globalization of the economy.
• The implementation of the BEPSminimum standards
• Tax transparency
• Inequality and progressivity of tax systems
• Tax and development
• Tax and crime
• Indirect tax

The IFCMA brings together government experts in climate, tax, and economic policy from developing, emerging, and developed economies. The report on the IFCMA provides details on its work, membership, governance, and forthcoming deliverables.

Access the news on the Deloitte’s website.

Materiality judgment demands that companies assess whether information could reasonably influence investor decisions.

In 2017 and 2018, the IASB's refined the definition of materiality and furnish guidance along with case studies to facilitate informed judgments. In 2022, the IFRS Foundation issued a call for research as it was seeking to partner with national standard-setters to gather research and information related to the changes and additions to the IASB’s literature on making materiality judgments.

The findings of the research underscored a robust understanding of materiality's concept. While utilization of the 2017 and 2018 guidance exhibited disparities across regions, where implemented, it proved beneficial. Moreover, the research advocates for sustained efforts to raise awareness among stakeholders regarding the available guidance. Looking ahead, the IASB remains committed to providing further assistance to companies navigating materiality judgments, with insights from its research poised to influence ongoing discussions, including those within projects such as the initiative regarding climate-related and other uncertainties in the financial statements.

The national standard-setters taking part in the research initiative, working in partnership with academics from their jurisdictions, are from Australia, Botswana, China, Malaysia, Mexico and New Zealand.

Access the research summary on IFRS Foundation’s website.

The podcast discusses the following:

• February ISSB meeting in New York City
• Key takeaways from the IFRS Sustainability Symposium
• Preview of the Inaugural Jurisdictional Guide for the adoption or other use of ISSB Standards
• Webcast and educational material highlighting the importance of industry-specific disclosures to investors
• Update on the capacity building programme

Access the press release on the IFRS Foundation website.

This AcSB Exposure Draft reflects proposals made by the International Accounting Standards Board (IASB) that the AcSB intends to adopt, subject to deliberating comments received, as Canadian generally accepted accounting principles.

The IASB’s Exposure Draft proposes to address the diversity in practice and respond to investor feedback by:

• clarifying the underlying classification principles of IAS 32 to help companies distinguish between financial liabilities and equity;
• requiring companies to disclose information to further explain the complexities of instruments that have both debt and equity features; and
• introducing new presentation requirements for amounts—including profit and total comprehensive income—attributable to ordinary shareholders separately from amounts attributable to other holders of equity instruments.

AcSB urges stakeholders in Canada to provide feedback to the IASB regarding its Exposure Draft. The IASB has outlined specific questions for input in its Invitation to Comment within the Exposure Draft. The AcSB advises that comment letters should be sent directly to the IASB, with a copy also sent to the AcSB. Comments to the IASB are due by March 29, 2024.

Access the press release on FRAS Canada’s website.