Year in review — 2023

29 Dec 2023

2023 was another successful year for the IAS Plus family. We've devoted significant resources to bring you comprehensive coverage of all things IFRS (now also including coverage of all developments around the ISSB) and broader financial and sustainability reporting and other relevant topics and are pleased that our readers appreciate our efforts.

Overall, our most popular pages remain our accounting standards summaries, and we continued to witness strong demand for our news, publications, resource pages, and project summaries. Our reporting around the IFRS Foundation structure and bodies witnessed again great demand this year with our resource pages on the International Accounting Standards Board (IASB) and the International Sustainability Standards Board (ISSB) being the top resource pages of the year.

Our 10 most popular stories of 2023
    1. IASB publishes amendments to IAS 12 to provide a temporary exception to the requirements regarding deferred tax assets and liabilities related to pillar two income taxes (May)
    2. ISSB publishes IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information (June)
    3. ISSB publishes IFRS S2 Climate-related Disclosures (June)
    4. IASB proposes amendments regarding the classification and measurement of financial instruments (March)
    5. IASB publishes amendments to IAS 21 to clarify the accounting when there is a lack of exchangeability (August)
    6. Educational material on applying IFRSs to climate-related matters updated (July)
    7. IASB publishes amendments to IAS 7 and IFRS 7 regarding supplier finance arrangements (May)
    8. European Commission consults on draft delegated regulation with regard to ESRS (June)
    9. European Commission adopts final delegated regulation with regard to ESRS (July)
    10. IASB to issue two new standards in 2024 (July)

We wish you a happy, safe and healthy New Year. We look forward to bringing you the latest financial reporting news in 2024.

Report recommends adoption of the ISSB standards in Pakistan

28 Dec 2023

The Institute of Chartered Accountants of Pakistan (ICAP) has published a report titled 'IFRS Sustainability Disclosure Standards — Study, consultation and recommendations for implementation in Pakistan'.

In the report, ICAP is presenting the results from consultations conducted with companies, auditors and other stakeholders in Pakistan on the adoption and implementation of the ISSB standards. 

ICAP recommends that the ISSB standards are adopted in Pakistan with the following timeline:

  • For periods beginning on or after 1 January 2025 for large companies;
  • For periods beginning on or after 1 January 2026 for medium-sized companies; and
  • For periods beginning on or after 1 January 2027 for all other listed companies.

The size criteria for 'large' and 'medium-sized' are set out in the report. It is recommended that in the first year of application entities will only have to disclose climate-related information (except information on Scope 3 emissions). From the second year, disclosures on all sustainability-related topics, including on Scope 3 emissions, would be required. 

Assurance would be required in accordance with the International Standard on Sustainability Assurance (ISSA) 5000 General Requirements for Sustainability Assurance Engagements from the second year of reporting.

Please click to see the full report on the ICAP website.

Central bank of Bangladesh publishes guideline on sustainability reporting

27 Dec 2023

The central bank of Bangladesh (Bangladesh Bank) has published a 'Guideline on Sustainability and Climate-related Financial Disclosure for Banks and Financial Institutions'. The guideline implements the standards by the International Sustainability Standards Board (ISSB).

The decision to implement IFRS S1 and IFRS S2 has been made in collaboration with the Financial Reporting Council (FRC) of Bangladesh and the disclosure requirements apply to scheduled banks and finance companies of Bangladesh.

The timeline for the implementation is as follows:

  • June 2024: Limited intermediate report
  • December 2024: Limited supervisory report
  • 2025: Limited disclosures in annual report
  • 2026: Limited disclosures, with additional elements, in annual report
  • 2027: Full disclosures under the guideline

Limited assurance of the reported information is required in the annual report.

For more information, please see the circular, which includes the guideline as an appendix, on the Bangladesh Bank website.

Season's greetings

24 Dec 2023

We wish all our readers a healthy and happy festive season and all the best for the New Year!

We look forward to seeing you again after the holidays and to continue to be your preferred accounting website in 2024.

First set of ESRSs published in the Official Journal of the European Union

22 Dec 2023

After the European Parliament adopted the first set of European Sustainability Reporting Standards (ESRSs) on 18 October 2023 and the Council of the European Union gave the final green light, the first set of ESRSs has now been published in the Official Journal of the European Union.

It is thus available in all official languages of the EU. Please click to access the first set of ESRSs here in the Official Journal.

Note: On 19 April 2024, the European Commission has published a corrigendum to the first set of ESRSs. The corrigendum includes corrections of non-substantive, obvious errors (e.g. typographical errors, wrong paragraph cross-references and other obvious errors). Please click to access the corrigendum in the Official Journal (again available in all official languages of the EU).



EFRAG proposes implementation guidance for ESRS

22 Dec 2023

The European Financial Reporting Advisory Group (EFRAG) has published three draft documents that propose implementation guidance for the European Sustainability Reporting Standards (ESRS). The comment period for the draft implementation guidance ends on 2 February 2024.

The press release states that these documents cover the most challenging aspects regarding the implementation of ESRS, which were adopted by the European Commission in July 2023. They are as follows:

The documents are proposed to be non-authoritative.

For more information, including on how to provide feedback on the documents, please see the press release on the EFRAG website.

Hyperinflationary economies - updated IPTF watch list available

22 Dec 2023

IAS 29 'Financial Reporting in Hyperinflationary Economies' defines and provides general guidance for assessing whether a particular jurisdiction's economy is hyperinflationary. But the IASB does not identify specific jurisdictions. The International Practices Task Force (IPTF) of the Centre for Audit Quality (CAQ) monitors the status of 'highly inflationary' countries. While it monitors the status of highly inflationary countries for the purposes of applying US GAAP, its criteria for identifying such countries are similar to those for identifying 'hyperinflationary economies' under IAS 29.

The IPTF's discussion document for the 9 November 2023 meeting is now available and states the following view of the Task Force:

Countries with three-year cumulative inflation rates exceeding 100%:

  • Argentina
  • Ethiopia
  • Ghana
  • Iran
  • Lebanon
  • Sierra Leone
  • Sudan
  • Suriname
  • Turkey
  • Venezuela
  • Yemen
  • Zimbabwe

Countries with projected three-year cumulative inflation rates exceeding 100%:

  • Haiti

    Countries where the three-year cumulative inflation rates had exceeded 100% in recent years:

    • South Sudan

    Countries with recent three-year cumulative inflation rates exceeding 100% after a spike in inflation in a discrete period:

    There are no countries in this category for this period.

    Countries with projected three-year cumulative inflation rates between 70% and 100% or with a significant (25% or more) increase in inflation during the current period

    • Angola
    • Burundi
    • Egypt
    • Lao P.D.R
    • Malawi
    • Moldova
    • Nigeria (new entry)
    • Pakistan
    • Sao Tome and Principe
    • Sri Lanka
    • Ukraine

    The IPTF also notes that there may be additional countries with three-year cumulative inflation rates exceeding 100% or that should be monitored which are not included in the analysis as the necessary data is not available. Examples cited are Eritrea, Syria, and Afghanistan.

    The full list, including exact numbers, detailed explanations of the calculation of the numbers, and observations of the Task Force is available on the CAQ website.

    EFRAG and TNFD sign cooperation agreement

    21 Dec 2023

    The European Financial Reporting Advisory Group (EFRAG) and the Taskforce on Nature-related Financial Disclosures (TNFD) have signed a cooperation agreement to further advance nature-related reporting.

    The agreement highlights the importance of addressing nature-related matters to advance corporate sustainability. It reflects a shared commitment between EFRAG and TNFD to enhance transparency on biodiversity and ecosystems matters.

    The agreement builds on a long-standing collaboration between EFRAG and TNFD, which resulted in alignment of the European Sustainability Reporting Standards (ESRS) with the TNFD’s recommended disclosures. The ESRS have been developed by EFRAG and were adopted by the European Commission in July 2023.

    As a next step, EFRAG and TNFD will publish a detailed interoperability mapping table illustrating the alignment of ESRS with the TNFD recommendations. The table is expected to be published early in 2024.

    For more information, please click to see the press release on the EFRAG website.

    EC adopts FAQs on environmental performance reporting under the EU taxonomy

    21 Dec 2023

    The EU Commission (EC) has published a frequently asked questions (FAQ) document to assist financial entities with their reporting about environmental performance of activities under the EU taxonomy.

    The document aims to support financial entities in meeting their reporting obligations by addressing FAQs arising from the interpretation and implementation of the Taxonomy Disclosures Delegated Act.  

    The FAQs include guidance on which entities will be in scope of the reporting obligations and assists with the taxonomy assessment of specific exposures. They also consider the rules with regard to the verification and evidence of compliance with the EU taxonomy, as well as questions specifically targeted at credit institutions, insurers and asset managers. 

    For more information and to access the FAQ document, please see the press release on the EC website. 

    Summary of the November 2023 CGRR meeting

    21 Dec 2023

    The Consultative Group for Rate Regulation (CGRR) held a virtual meeting on 30 November 2023. The meeting summary of the meeting has now been released.

    The meeting focused on the proposed disclosure requirements in the exposure draft and potential new disclosure requirements arising from the IASB’s redeliberations on the exposure draft.

    The meeting summary is available on the IFRS Foundation website.

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