The response notes that Accountancy Europe believes that the remaining non-alignment between the ESRS and the International Sustainability Standards Board (ISSB) IFRS sustainability standards is a fatal flaw which should be amended by the EC before the adoption of the delegated acts. This would include aligning the currently diverging:

• ESRS’ financial materiality definition and description with the IFRS materiality;
• materiality assessment approaches (ESRS focus on the phenomena whereas ISSB focuses on information); and
• determination of useful information for each type of user of information.

The response also notes that "the process followed was neither ideal nor as intended in the Better Regulation principles". It states that EFRAG developed the first set of ESRS "under extremely challenging deadlines", which resulted in a short consultation period and outsourcing of important tasks. It also notes that the proposed delegated acts "could have merited a broader and longer consultation than the EC’s targeted 4-week feedback period".

Please click to access the full response and a summary press release on the Accountancy Europe website.

The only topic to be discussed is the proposed future composition of the IFRS Taxonomy Consultative Group (ITCG). The agenda and the paper for the meeting are available on the IFRS Foundation's website.

A summary of the agenda is set out below:

Agenda papers for the meeting are available on the IFRS Foundation website.

The agenda items for discussion are as follows:

• IAS 1 Amendments (2020 and 2022) – Non-current Liabilities: Approval of Endorsement Criteria Assessment and Adoption Package
• Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7): Draft Endorsement Criteria Assessment 
• International Tax Reform—Pillar Two Model Rules (Amendments to IAS 12): Endorsement Criteria Assessment and adoption package
• Post-Implementation Review of IFRS 15 Revenue from Contracts with Customers: Draft Comment Letter
• IFRS 9 Amendments to Classification and Measurement: Final Comment Letter, Feedback Statement, [Draft] Due Process Compliance Statement
• IASB General Update

The meeting agenda and papers and details of how to register are available on the UKEB website.  

Update 03/08/2023 - a recording of the meeting is available on the UKEB website here.

The agenda items for discussion are as follows:

• Draft Comment Letter: Post-Implementation Review of IFRS 9 – Impairment
• Final Comment Letter: ISSB Request for Information 

The meeting agenda and papers and details of how to register are available on the UKEB website.  

The recording of the Public UKEB meeting 2 August 2023 is avaialbe on the UKEB website.

The Code is accompanied by two other, related, documents:

• Principles of Good Practice for listed companies using external board reviewers. These principles outline how an organisation should engage with its reviewer in order both to achieve the maximum benefit and to give assurance to its stakeholders.
• New guidance for listed companies about reporting on board performance reviews, which particularly looks at striking the balance between the information needs of the organisation’s stakeholders and the board’s legitimate desire to avoid breaching confidentiality.

To support the improvement of board performance reviews further, from September 2023, the CGIUKI will offer the following:

• Training courses for those new/less experienced in Board Reviews.
• An Accreditation service for Board Reviewers (organisations and individuals).
• Training, workshops, toolkits and templates for those procuring Board Effectiveness Review services or charged with undertaking an internal Board Review.

The new Code of Practice and the other two accompanying documents are available on the GCIUKI website.

The comparison shows that, as the requirements in IFRS S2 are consistent with the four core recommendations and eleven recommended disclosures published by the TCFD, companies that apply the ISSB Standards will meet the TCFD recommendations and so do not need to apply the TCFD recommendations in addition to the ISSB Standards.

IFRS S2 contains additional requirements, though. These include the requirements for companies to disclose industry-based metrics, to disclose information about their planned use of carbon credits to achieve their net emissions targets, and to disclose additional information about their financed emissions.

Please click to access the comparison on the IFRS Foundation website.

We support the objectives of the European Green Deal and policy and regulation that are designed to enable the flow of high-quality, consistent and comparable sustainability information which is essential to support these objectives. We welcome the steps that the EC has already taken in the draft delegated regulation to simplify the European Sustainability Reporting Standards (ESRS) requirements by ensuring that all disclosure requirements and data points in topical standards are subject to materiality; making some disclosure requirements voluntary; and improving the understandability of the standards. Our key comments are set out in a cover letter with an appendix some comments, requests for clarification, and suggested edits on the draft ESRS, provided by some of our Deloitte experts. Our comments submitted do not represent an exhaustive set of comments due to the limited amount of time available for review of the draft delegated regulation.

Please click to download our comment letter here.

The publication mainly consists of a non-exhaustive list of examples illustrating when IFRS Standards may require companies to consider the effects of climate-related matters in applying the principles in a number of standards.

The examples in the list refer to the following standards:

• IAS 1 Presentation of Financial Statements
• IAS 2 Inventories
• IAS 12 Income Taxes
• IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets
• IAS 36 Impairment of Assets
• IAS 37 Provisions, Contingent Liabilities and Contingent Assets and IFRIC 21 Levies
• IFRS 7 Financial Instruments: Disclosures
• IFRS 9 Financial Instruments
• IFRS 13 Fair Value Measurement
• IFRS 17 Insurance Contracts

The publication also notes that in addition to the specific requirements outlined in the table, IAS 1 contains some overarching requirements that could be relevant when considering climate-related matters.

Please click to access Effects of climate-related matters on financial statements on the IASB website.

Similar educational material on applying the IFRS for SMEs to climate-related matters was published by the IASB in May 2023.

In its draft comment letter, EFRAG notes that the requirements in IFRS 15 generally work as intended.

Nevertheless, EFRAG identifies some application challenges that should be further considered by the IASB in the context of this project. These include:

• challenges in determining whether a reporting entity is a principal or an agent;
• challenges in accounting for contracts involving licences;
• challenges of applying the requirements of IFRS 15 along with the requirements of IFRS 3, IFRS 16, IFRS 10, and IFRS 11;
• challenge of identifying performance obligations related to contracts with upfront fees, pre-production services, and those involving licences; and 
• challenge in determining the transaction price in respect of the requirements for the estimation of variable consideration and the treatment of ‘negative’ revenue.

Comments on EFRAG's draft comment letter are requested by 11 October 2023. For more information, see the press release and the draft comment letter on the EFRAG website.