Deloitte comment letter on the draft ESRS

10 Aug 2022

We have commented on the draft European Sustainability Reporting Standards (ESRS) developed by the European Financial Reporting Advisory Group (EFRAG) and released for comment in April 2022.

Deloitte supports consistent reporting of high-quality, relevant, reliable and comparable information that will enable investors and other relevant stakeholders to make decisions that support the transition to a green and inclusive economy. The draft ESRS are comprehensive and generally have the potential to result in relevant information, but we have key concerns that they will create issues for the quality of the information provided, the effective implementation and enforceability of the standards, and consequently will not support the ultimate objective.

We believe that these issues need to be addressed before ESRS are finalised and issued and ask that EFRAG:

  • continues to work closely with the International Sustainability Standards Board (ISSB) to drive convergence and achieve a global baseline of sustainability information, taking advantage of the current window of opportunity to align before the respective standards are finalised;
  • addresses the overall volume of required disclosures in the proposed package of ESRS and ensures they are practical for companies to implement and relevant to users considering costs and benefits, particularly in the first years; and
  • allows for a more reasonable timeline to finalise the standards and adhere to the due process.

Please click to download the full comment letter here.

IASB publishes short video on results of its agenda consultation

03 Aug 2022

On 29 July, the International Accounting Standards Board (IASB) concluded its third agenda consultation by releasing a feedback statement. In a video now released, IASB Chair Andreas Barckow discusses the reasons for the IASB’s decisions as result of the agenda consultation and how the IASB responded to the extensive feedback from its diverse stakeholders.

Please click to access the video (approx. 4 minutes) on YouTube.

IFRS Foundation and Value Reporting Foundation complete consolidation

01 Aug 2022

The consolidation of the Value Reporting Foundation (VRF) into the IFRS Foundation has been completed.

The VRF was formed in June 2021 with the merger of the International Integrated Reporting Council (IIRC) and the Sustainability Accounting Standards Board (SASB). The consolidation with the IFRS Foundation will inform the work of the IFRS Foundation through the industry-based approach of the SASB Standards and the Integrated Reporting Framework.

The consolidation is part of a COP26 objective to consolidate leading investor-focused sustainability disclosure organisations with the IFRS Foundation. 

For more information, see the press release on the IFRS Foundation website.

IASB issues podcast on latest Board developments (July 2022)

01 Aug 2022

The IASB has released a podcast featuring IASB Chair Andreas Barckow and Executive Technical Director Nili Shah discussing deliberations at the July 2022 IASB meeting.

High­lights of the podcast include dis­cus­sions on:

  • Analysis of feedback provided on the post-im­ple­men­ta­tion review of IFRS 9 — clas­si­fi­ca­tion and mea­sure­ment project.
  • IFRS 9 requirements for assessing a financial asset’s contractual cash flow characteristics.
  • Proposed project plan for dynamic risk management.
  • Deliberations on the financial instruments with characteristics of equity, primary financial statements, rate-regulated activities, and goodwill and impairment projects.
  • Possible steps forward related to disclosure initiative — targeted standards-level review of disclosures.
  • Feedback on Exposure Draft, Supplier Finance Arrangements.
  • Updates on maintenance and consistent application.

The podcast can be accessed through the press release on the IFRS Foundation website.

Please click to view the detailed notes taken by Deloitte observers for the IASB meeting.

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