The key areas of financial reporting that may be affected by climate-related matters are:
Estimates and judgments:
✅ Fair value measurements
✅ Asset impairments including expected credit losses
✅ Provisions and contingent liabilities
The effective date of IFRS 17 Insurance Contracts has arrived.
IFRS 17 is the first comprehensive IFRS Standard on accounting for insurance contracts effective for periods beginning on or after 1 January 2023.
CSRD requires adoption of the European Sustainability Reporting Standards (ESRS).
Along with the EU Taxonomy Regulation, CSRD will be the future of corporate sustainability reporting in the EU.
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Corporate Sustainability Reporting Directive (CSRD)
CSRD, the new European Union (EU) legislation passed by the European Union Council in November 2022 will be applicable to 50,000 EU companies. It also applies to non-EU companies with significant turnover/operations in the EU.
@CIMAIndia recently organised a session on the above topic which was attended by participants across the Middle East and Asia. @Saket_A_Modi , ACA CFA discussed the key issues in IFRS reporting,
Happy Diwali wishes to you and your loved ones as we celebrate the triumph of light over darkness, hope over despair, and the victory of good in the world. #HappyDiwali
The International Sustainability Standards Board (ISSB) was launched in COP26 in November 2021. Our blog highlights the role of the ISSB and its key achievements in 2022 - https://t.co/DPOKYBWdxC
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These standards will consolidate and add to the requirements under the different frameworks to bring consistency and comparability in sustainability reporting.
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There is a lot of buzz around ESG (Environment-Social-Governance) reporting. The key ESG frameworks are:
a) Global Reporting Initiative (GRI)
b) Sustainability Accounting Standards Board (SASB)
c) Task Force for Climate-Related Financial Disclosures (TCFD)
The sustainability reporting standards to be published by the International Sustainability Standards Board (ISSB) is expected to drive ESG reporting in the future.
There is a difference in the pattern of expense recognition by lessees as per IFRS 16 Leases/U.S. GAAP finance lease and U.S. GAAP operating lease.
IFRS 16 Leases has a single right of use model which requires lessees to recognise lease asset and lease liability.
Instead of depreciation and interest, operating leases requires recognition of a constant lease cost within operating expenses which has an impact on both EBITDA and EBIT.