Climate-related disclosures – the best scenario?

As we addressed here, the International Sustainability Standards Board issued its first two exposure drafts, General Sustainability-related Disclosures and Climate-related Disclosures, which were both open for comment until July 29, 2022. The draft on climate-related disclosures includes the following proposed requirements: An entity shall disclose information that enables users of general purpose financial reporting to…

Breaking down expense items – still tentatively exploring!

Here’s an extract from a recent IASB staff paper, prepared in connection with the Primary Financial Statements project: The staff recommends the IASB explores an approach that would require that an entity discloses, for all operating expenses disclosed in the notes, the amounts included in each line item in the statement of profit or loss.…

Disclosing sustainability-related information, or: bad reputation!

As we addressed here, the International Sustainability Standards Board has issued its first two exposure drafts, General Sustainability-related Disclosures and Climate-related Disclosures, both open for comment until July 29, 2022. Here are some extracts: Sustainability-related financial information is broader than information reported in the financial statements and could include information about… the entity’s reputation, performance…

Classification of liabilities – suppress your creativity!

Here’s another of the issues arising from extracts of enforcement decisions issued in the past by the European Securities and Markets Authority (ESMA); this is from their 25th edition: The issuer is a biotechnology company. In October 2017, the issuer issued debt fully subscribed by company B, for an amount representing around 30% of the…

Sustainability reporting – bring the ethics!

As we addressed here, the International Sustainability Standards Board has issued its first two exposure drafts, General Sustainability-related Disclosures and Climate-related Disclosures, both open for comment until July 29, 2022. Here’s an extract from a comment letter submitted by the International Ethics Standard Board for Accountants: Sustainability reporting is increasingly important, not only in meeting…

Disclosing carbon offsets, or: credibility and integrity!

The current exposure draft on climate-related disclosures would require disclosure, among much else of course, of the intended use of carbon offsets in achieving emissions targets… The disclosure would cover whether the offsets will be subject to a third-party offset verification or certification scheme and if so, which scheme, or schemes; the type of carbon…

A completed post-implementation review- nothing to see here!

The IASB recently released a Project Report and Feedback Statement concluding its Post-implementation Review (PIR) of IFRS 10 Consolidated Financial Statements; IFRS 11 Joint Arrangements; and IFRS 12 Disclosure of Interests in Other Entities. Here’s how the news release summed it up: Feedback from stakeholders and research undertaken as part of the PIR shows that the requirements set…

Disclosures on sustainability – would being good, be good enough?

On the current exposure drafts on sustainability- and climate-related disclosures – how good would be good enough? I don’t suppose anyone, including its drafters, thinks the exposure drafts are perfect. Many respondents, based on my unscientific scan of comment letters to date, would likely allow that they’re good (albeit that may mainly be defined as…

Sustainability-related disclosures – a flawed enterprise?

As we addressed here, the International Sustainability Standards Board has issued its first two exposure drafts, General Sustainability-related Disclosures and Climate-related Disclosures, both open for comment until July 29, 2022. One of the proposals’ key structuring concepts is that of “enterprise value,” as evidenced for instance in the following passages: A reporting entity shall disclose…