This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice (http://www2.deloitte.com/ca/en/legal/cookies.html) for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

News

IIRC (International Integrated Reporting Committee) Image
SASB (Sustainability Accounting Standards Board) Image

IIRC and SASB officially merge

Jun 09, 2021

On June 9, 2021, the International Integrated Reporting Council (IIRC) and the Sustainability Accounting Standards Board (SASB) officially announced their merger to form the Value Reporting Foundation (VRF).

The VRF supports business and investor decision-making with three key resources:

  • Integrated Thinking Principles,
  • Integrated Reporting Framework, and
  • SASB Standards.

These tools are intended to enable organizations to move from buy-in to action. By more closely aligning the Integrated Reporting Framework and the SASB Standards, the VRF will make it easier for businesses to communicate their long-term strategy and provide a more comprehensive view of business performance to investors and other providers of capital.

The VRF is also committed to the delivery of a more coherent corporate reporting system by working closely with the IFRS Foundation and other leading framework providers and standard-setters around the world.

Review the press release and the new VRF website for more information and a list of statements from business leaders.

IFRS - IASB Image

Second webinar in series on disclosure requirements in IFRS Standards

Jun 08, 2021

On June 8, 2021, the IFRS Foundation announced its second webinar in a series of webinars on the IASB exposure draft "Disclosure Requirements in IFRS Standards — A Pilot Approach". The webinar will be held on June 17, 2021.

The second webinar will explore in more detail the proposed new approach to developing disclosure requirements in IFRS Standards and will include a discussion of the Board’s views on comparability, enforceability and electronic reporting.

For the convenience of participants from different time zones, there will be two sessions of the webinar both discussing the same topics:

  • Thursday 17 June 2021, 09:00–10:00 BST and
  • Thursday 17 June 2021, 15:00–16:00 BST.

Each session will include a moderated question-and-answer session.

Review the press release on the IASB’s website.

Leaf - sustainability (green) Image

TCFD consults on updates to its 2017 recommendations

Jun 08, 2021

The Task Force on Climate-related Financial Disclosures (TCFD) set up by the Financial Stability Board (FSB) to develop voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to lenders, insurers, investors and other stakeholders is consulting on updates to its final recommendations on climate-related financial disclosures as disclosure practices and the use of disclosures by financial and non-financial organizations have continued to progress since 2017.

The introduction to the consultation notes that when the Task Force issued its final recommendations, "it was aware of the limitations of reporting certain metrics as well as the nascency of climate-related reporting at the time, and anticipated that metric disclosure would evolve as climate-related financial reporting matured". The developments especially noted are around global standard convergence:

In response to these developments, progress around certain metrics and newly identified areas warranting additional guidance, the TCFD has developed its Proposed Guidance on Climate-related Metrics, Targets, and Transition Plans to serve two purposes:

  • to provide general guidance for organizations seeking to establish relevant metrics, targets, and transition plans around their climate-related risks and opportunities, and
  • to propose specific changes to the guidance for all sectors and supplemental guidance in the 2017 final report and in the guidance on implementing the recommendations.

Comments on the proposed guidance, which comes with an associated Measuring Portfolio Alignment: Technical Supplement, are requested by July 7, 2021.

The Task Force will take the consultation responses into consideration when releasing final guidance in the fall of 2021.

Review both documents on the TCFD's website.

IFRS - IASB Image
Leaf - sustainability (green) Image

Eminent Persons Group to advise Trustees on their sustainability initiative

Jun 07, 2021

On June 7, 2021, the IFRS Foundation Trustees announced the establishment of an Eminent Persons Group to provide strategic advice and counsel to the Trustees regarding the proposed formation of the International Sustainability Standards Board (ISSB). The group will also advise on the connectivity with jurisdictional initiatives.

The Eminent Persons Group is chaired by Jean-Claude Trichet, former President of the European Central Bank. Additional members are Sheila Bair, former Chair of the US Federal Deposit Insurance Corporation, Nandan Nilekani, Chair and co-founder of Infosys, Guillermo Ortiz, former Governor of Banco de Mexico and former Chair of the Bank of International Settlements, and Min Zhu, former Deputy Managing Director of the International Monetary Fund. The group has held its first meeting and will have regular engagement with the Trustees.

The Trustees now have four groups they work with in the context of their sustainability initiative:

  • The Trustees’ Steering Committee provides strategic direction and project oversight and makes recommendations on key decisions for endorsement by all Trustees.
  • The Eminent Persons Group provides strategic advice and counsel to the Trustees.
  • The Technical Readiness Working Group is working on providing the ISSB with a ‘running start’.
  • The Multilateral Working Group does preparatory work for a building-blocks approach and facilitates interaction with other international/jurisdictional initiatives.

Review the press release on the IASB's website.

Leaf - sustainability (green) Image

New Taskforce on Nature-related Financial Disclosures launched

Jun 07, 2021

The Taskforce on Nature-related Financial Disclosures (TNFD) is a new global market-led initiative which aims to provide financial institutions and corporates with a complete picture of their environmental risks and opportunities. The TNFD will deliver a framework for organizations to report and act on evolving nature-related risks, building on the success of the Task Force on Climate-related Financial Disclosures (TCFD).

As part of the launch, two publications have been published on the TNFD website:

Review the press release on the TNFD website announcing the launch as well as a letter by the two newly appointed Co-Chairs.

 

IFRS - IASB Image

Recording of EAA-IASB workshop on the Third Agenda Consultation

Jun 07, 2021

On June 7, 2021, the International Accounting Standards Board (IASB) released the recordings of a virtual workshop it held in conjunction with the European Accounting Association (EAA). The workshop provided an overview of the IASB’s Third Agenda Consultation and an update on the Board’s current projects.

Listen to the recording of the presentations and access the slide decks on the IASB website.

Leaf - sustainability (green) Image

G7 Finance Ministers and Central Bank Governors support Trustees' sustainability initiative

Jun 05, 2021

On June 5, 2021, the Finance Ministers and Central Bank Governors of the G7 released a communiqué that they support the IFRS Foundation Trustees' initiative on sustainability reporting. They met virtually on May 28, 2021, and Finance Ministers met in London on June 4-5, 2021, joined by the Heads of the International Monetary Fund (IMF), World Bank Group, Organisation for Economic Cooperation and Development (OECD), Eurogroup, and Financial Stability Board (FSB).

In the final communiqué, the Finance Ministers and Central Bank Governors emphasize the need to green the global financial system so that financial decisions take climate considerations into account as this would help mobilize the trillions of dollars of private sector finance needed, and reinforce government policy to meet their net zero commitments. The communiqué notes:

We support moving towards mandatory climate-related financial disclosures that provide consistent and decision-useful information for market participants and that are based on the Task Force on Climate-related Financial Disclosures (TCFD) framework, in line with domestic regulatory frameworks. Investors need high quality, comparable and reliable information on climate risks. We therefore agree on the need for a baseline global reporting standard for sustainability, which jurisdictions can further supplement. We welcome the International Financial Reporting Standards Foundation’s programme of work to develop this baseline standard under robust governance and public oversight, built from the TCFD framework and the work of sustainability standard-setters, involving them and a wider range of stakeholders closely to foster global best practice and accelerate convergence. We encourage further consultation on a final proposal leading to the establishment of an International Sustainability Standards Board ahead of COP26.

Review the full communiqué on the UK government website. In a press release on the IASB website, the Trustees appreciate the support in the G7 communiqué.

IFRS - IASB Image

Trustees to offer webinar on their sustainability initiative

Jun 04, 2021

On June 4, 2021, the Trustees of the IFRS Foundation announced that they will host a webinar on July 7 that will summarize the feedback gathered during the Trustees’ 2020 Consultation and explain how the Trustees have responded to that feedback. The speakers will also outline the Trustees’ strategic decisions and the remaining steps before the Trustees make a final determination on the new board by the United Nations COP26 conference in November 2021.

For the convenience of participants in different time zones there will be two sessions, one in the morning and one in the afternoon.

Review the press release for more information, registration and submitting questions on the IASB's website.

IFRS - IASB Image

IASB Chair provides final observations

Jun 03, 2021

On June 3, 2021, the International Accounting Standards Board (IASB) released a speech given during the IFRS Foundation Virtual Conference 2021, where IASB Chair Hans Hoogervorst provided his final observations of his 10-year tenure. Mr. Hoogervorst discussed certain economic thinking, such as the influence of the "Washington Consensus". Also, he touched upon the effect of the Great Financial Crisis of 2008 and the COVID pandemic had to the economy and the risks that recent policies may have to the monetary system.

Next, he commented on the progress done to IFRS Standards to reduce vulnerabilities. Specifically, he mentioned the improvements made by IFRS 9, IFRS 15, and IFRS 17 Standards, the updated conceptual framework, the primary financial statements project, and the new version of the management commentary practice statement.

Further, Mr. Hoogervorst noted the progress in the use of IFRS Standards globally and that there are currently more than 140 jurisdictions that have adopted IFRS Standards.

In closing, Mr. Hoogervorst thanked the Trustees, the IASB Board (past and present), IASB Vice-Chair Sue Lloyd, the technical and operational staff as well as the accounting community for all the contributions to the standard setting process.

In the video recording, upcoming IASB Chair Andreas Barckow provided a brief introduction and thanked Mr. Hoogervorst for all his accomplishments during the past 10 years.

Review the transcript and video of his speech on the IASB’s website.

AASB Image

Fraud, going concern, and the expectation gap

Jun 03, 2021

On June 3, 2021, the Auditing and Assurance Standards Board (AASB) released an article on how they are working to better understand the expectation gap between the perception of the auditor’s role and their responsibilities in a financial statement audit.

Although the external audit is only one element within the broader financial reporting ecosystem, the auditor’s role in audits of financial statements continues to receive heightened public attention.

Review the article to learn more about their outreach initiatives and watch a video excerpt on the AASB'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.