The Australian Government is committed to introducing internationally-aligned mandatory climate-related financial reporting for large businesses and financial institutions and the AASB has, therefore, decided to use the work of the ISSB as a foundation, with modifications for Australian matters and requirements where necessary to meet the needs of Australian stakeholders.

ED SR1 includes three draft Australian Sustainability Reporting Standards (ASRS Standards):

1. [draft] ASRS 1 General Requirements for Disclosure of Climate-related Financial Information, developed using IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information as the baseline but with a scope limitation to climate-related financial disclosure;
2. [draft] ASRS 2 Climate-related Financial Disclosures, developed using IFRS S2 Climate-related Disclosures as the baseline; and
3. [draft] ASRS 101 References in Australian Sustainability Reporting Standards, developed as a service standard that would be updated periodically to list the relevant versions of any non-legislative documents published in Australia and foreign documents that are referenced in ASRS Standards.

Please click to access the exposure draft on the AASB website.

The main topics for the meeting were:

• Current state of global financial and sustainability reporting frameworks, standards, codes, and prospects for further harmonisation;
• Review of practical implementation and recent developments in sustainability reporting requirements;
• Facilitating the formalisation of micro and small businesses: accounting and reporting requirements, financial literacy, access to finance, and related issues and practical solutions; and
• Promoting gender balance in the accountancy profession.

The documents and presentations from the meeting can now be accessed online.

This transition will see the ISSB's standards shift from voluntary use, commencing in 2024, to mandatory use starting on January 1, 2026. This decision signifies a major stride toward enhancing transparency in Brazilian capital markets concerning sustainability-related risks and opportunities. The decision coincides with the IFRS Foundation Trustees recent meeting in Panama City, underlining the collaborative efforts of key stakeholders in the region to bolster sustainable and resilient financial sectors.

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

The agenda for the meeting is sum­marised below:

Agenda papers from this meeting are available on the IFRS Foun­da­tion website.

A summary of the agenda is set out below:

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

The following topics are on the agenda:

Dynamic Risk Management: The IASB will discuss the staff’s preliminary view on the scope of the Dynamic Risk Management (DRM) model, that is the type of risk management activities for which the application of the DRM model would be appropriate and provide useful information. The staff will present their view on what would be the relevant characteristics of a risk management strategy and activities can be inferred from the elements of the DRM model, such as the Current Net Open Position and the Risk Mitigation Intention, as well as the business activities that give rise to the interest rate risk exposure.  The IASB will not be asked to make any decision at this meeting.

Rate-regulated Activities: The IASB will make decisions on the proposals in the Exposure Draft Regulatory Assets and Regulatory Liabilities, in particular on the direct (no direct) relationship concept and the boundary of a regulatory agreement.

Maintenance and consistent application: The purpose of this session is to ask IASB members whether they object to several agenda decisions that have been published by the IFRS Interpretations Committee.

Equity Method: The IASB will decide on whether to apply its previous tentative decisions on application questions for investments in associates to parents that elect to use the equity method to investments in subsidiaries in their separate financial statements, and to investments in joint ventures.

Amendments to the Classification and Measurement of Financial Instruments: The IASB will discuss feedback on the Exposure Draft Amendments to the Classification and Measurement of Financial Instruments, in particular feedback received about contractual terms that are consistent with a basic lending arrangement. The IASB will not be asked to make any decisions.

Primary Financial Statements: The IASB will discuss sweep issues that arose when the staff balloted the new IFRS 18 Presentation and Disclosure in Financial Statements. The sweep issues relate to aggregation and disaggregation, and other topics identified, including requiring presentation of cost of sales separately from any other expenses classified by function if the entity classifies operating expenses by function that include cost of sales.

Second Comprehensive Review of the IFRS for SMEs Standard: The IASB will continue the redeliberation of its proposals in the Exposure Draft Third edition of the IFRS for SMEs Accounting Standard. The IASB will make decisions on the following topics: revenue from contracts with customers; consolidated and separate financial statements; recognition of development costs for intangible assets; recognition of borrowing costs for qualified assets; and recent amendments to full IFRS Accounting Standards.

Disclosure Initiative—Subsidiaries without Public Accountability: Disclosures: The IASB will decide whether to make amendments to the sections related to IFRS 2, IFRS 3, IFRS 7, IFRS 12, IFRS 15, IFRS 16, IAS 2, IAS 7, IAS 12, IAS 19, IAS 29, IAS 37, and IAS 41 to clarify the disclosure requirements and make them more consistent across the Standards.

Our pre-meet­ing summaries is available on our October meeting notes page and will be sup­ple­mented with our popular meeting notes after the meeting.

The following topic is on the agenda:

GSSB Work Program 2023-2025: Carol Adams, Global Sustainability Standards Board (GSSB) Chair, and Bastian Buck, GSSB Chief of Standards will present an overview of the GSSB work programme over the next two years.

International Applicability of the SASB Standards: In this session, the staff will present the feedback the ISSB received with regard to the Exposure Draft Methodology for Enhancing the International Applicability of the SASB Standards and SASB Standards Taxonomy Updates (Methodology ED). The staff will also inform the ISSB about recommendations it made to the SASB Standards Board Advisor Group (SASB Standards Board Advisors) in response to the Methodology Exposure Draft feedback and the decisions taken by the SASB Standards Board Advisors.

Supporting implementation of IFRS S1 and IFRS S2: At this meeting, the staff will provide an update on the development of educational material on IFRS S1 and IFRS S2. The ISSB will not be asked to make any decisions. The staff intends to develop educational material that is anchored in and informed by stakeholder feedback. At the same time, the staff thinks it is necessary to find a balance between being proactive and responsive, while also developing a systematic approach to monitor, evaluate and respond to questions being raised by stakeholders.

Our pre-meet­ing summaries is available on our October meeting notes page and will be sup­ple­mented with our popular meeting notes after the meeting.

The Burden Reduction Package, which aim is to reduce and streamline reporting across multiple policy areas, has implications for the implementation of the Corporate Sustainability Reporting Directive (CSRD) and the EU Taxonomy Regulation. Some of the key proposals include:

• Targeted amendments to the Accounting Directive adjusting the size criteria for companies that fall under the reporting requirements of the CSRD, and therefore reducing the scope of application of the CSRD, as follows:
  • Small undertakings: The balance sheet total goes from EUR 4 million to EUR 5 million and the net turnover threshold from EUR 8 million to EUR 10 million.
  • Medium-sized undertakings and groups: The balance sheet total goes from EUR 20 million to EUR 25 million and the net turnover threshold from EUR 40 million to EUR 50 million.
  • Large undertakings and groups: The balance sheet total goes from EUR 20 million to EUR 25 million and the net turnover threshold from EUR 40 million to EUR 50 million.
• Postponement of the deadline for the adoption of sector-specific and third country European Sustainability Reporting Standards (ESRS) to June 2026 from June 2024. The latter does not defer the effective date of the CSRD for third country undertakings.
• Publication of a call for evidence to identify reporting requirements in the general EU framework that can be removed or rationalised.
• Clarification regarding the EU Taxonomy Regulation which states that no assessment is needed for activities that are not material to business or where companies lack evidence or data to prove compliance.

For more information, access the 2024 Commission Work Programme on the European Commission website.

This year, it is titled "Delivering Impact in a Time of Complexity", marking the eleventh instalment of the ‘Reporting matters’ publication. It introduces an evolved evaluation framework designed to guide companies in an era of rapidly evolving reporting regulations and increased stakeholder expectations.

Please click to access the report on the WBCSD website.

The Trustees' meeting, held from 17 to 19 October, underscores Latin America's role in the global financial landscape. Discussions with local stakeholders and support for sustainability standards from the Superintendency of Banks of Panama affirm the region's commitment to transparency and sustainable finance. The Foundation's global reach and commitment to fostering sustainable practices were highlighted by key figures, including Chair Erkki Liikanen and Isabel Saint Malo, a Trustee and former Vice President of Panama. These meetings coincide with Latin Americas and the Caribbean Climate Week, where IFRS Foundation and ISSB representatives will actively participate.

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