Latest news with #IASB
South China Morning Post
3 hours ago
- Business
- South China Morning Post
New accounting rules to force firms to show climate impact on bottom line
Companies will soon be expected to reflect climate risk in their profit and loss (P&L) accounts, revealing to investors how floods, storms and droughts affect bottom lines. The International Accounting Standards Board (IASB), whose rules are used in some 169 jurisdictions across the globe, is due to have a finalised set of examples by October to show companies how to disclose the impact of a hotter planet on P&L items, including impairments and provisions. It's technical and may make 'people's eyes glaze over', said Natasha Landell-Mills, head of stewardship at Sarasin & Partners, which manages US$23 billion in assets. But this kind of financial rewiring ultimately 'drives decision making', she said. The development marks a step up from the standard reporting model to date, whereby companies have released financial earnings and mostly left things like climate risk to separate sustainability reports. Forcing companies to merge the two means 'getting to the heart of how the system operates', Landell-Mills said. More than half of the companies surveyed by Morgan Stanley in June said their revenue took a hit due to climate-related events last year. Photo: Shutterstock Investors with a focus on sustainability have complained for years that corporate reporting falls short. The IASB decided back in 2023 to identify what could be done to address such concerns, and in July published a draft list of examples.
Bloomberg
13 hours ago
- Business
- Bloomberg
Fund Managers to Get New Risk Management Tool: ESG Investing
Companies will soon be expected to reflect climate risk in their profit and loss accounts, revealing to investors how floods, storms and droughts affect bottom lines. The International Accounting Standards Board, whose rules are used in some 169 jurisdictions across the globe, is due to have a finalized set of examples by October to show companies how to disclose the impact of a hotter planet on P&L items including impairments and provisions.
Yahoo
05-08-2025
- Business
- Yahoo
EFRAG feeds back on IASB exposure draft on provisions improvements
The European Financial Reporting Advisory Group (EFRAG) has released a feedback statement on the International Accounting Standards Board's (IASB) Exposure Draft (ED) Provisions – Targeted Improvements. EFRAG's statement summarises stakeholder feedback and explains how it informed EFRAG's final comment letter (FCL), submitted to the IASB on 1 April 2025, in response to the IASB's ED IASB/ED/2024/8. The ED proposed amendments to three aspects of IAS 37 Provisions, Contingent Liabilities and Contingent Assets. These include the criteria for recognising a provision, specifically the requirement for a present obligation from a past event, the requirements for measuring a provision related to future expenditure and the discount rate used to bring that expenditure to present value. The FCL assessed that the proposals create less clear guidance for some types of provisions. Additionally, EFRAG found that the proposals increase reliance on judgement, which may not lead to a reduction in compliance costs. A consequence of amending the present obligation recognition criterion is the withdrawal of IFRIC 21 Levies. EFRAG welcomed this but noted that the Exposure Draft did not fully address previously raised concerns regarding IFRIC 21. EFRAG recommended that the IASB refine definitions of legal and constructive obligations, specify criteria for exchange transactions, define qualifying past events, clarify actions taken over time and determine when an entity cannot avoid an action. EFRAG also suggested field-testing the requirements and improving examples in the proposed guidance for IAS 37. In the FCL, EFRAG supported proposed improvements to the measurement of provisions, specifically the clarification of required expenditure and specifying a risk-free discount rate, excluding non-performance risk. However, EFRAG highlighted several areas needing further guidance and clarification. EFRAG suggested that the IASB could finalise the measurement amendments more quickly than those related to the present obligation recognition criterion. "EFRAG feeds back on IASB exposure draft on provisions improvements " was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-07-2025
- Business
- Yahoo
IFRS Foundation unveils near-final examples for uncertainty reporting
The IFRS Foundation has published a set of near-final examples to help companies accurately report financial uncertainties, using climate-related situations for practical reference. These examples are designed to assist companies in applying existing IFRS Accounting Standards to their financial statements. The publication of these examples is a response to stakeholder concerns regarding the lack of detailed information about uncertainties. The development of the examples was a collaborative effort between the International Accounting Standards Board (IASB) and the International Sustainability Standards Board. The IASB plans to issue the finalised set of examples by October 2025. The examples demonstrate the practical application of IAS 1, IFRS 18, IAS 36, IAS 37, IFRS 7 and other standards. They address materiality judgments in climate-related transition plans and disclosure of impairment assumptions including emission allowance costs. The themes also cover credit risk reporting for sectors vulnerable to climate impacts and disaggregation of property, plant and equipment based on climate exposure. Additionally, they address decommissioning provisions amid uncertainties from long-term climate policies. IASB chair Andreas Barckow said: 'By publishing the examples in near-final form, we are providing companies with earlier visibility of our work.' Recently, the IFRS Foundation enhanced its IFRS Taxonomy Consultative Group with six new members and two returning members, with their terms starting on 1 August 2025. "IFRS Foundation unveils near-final examples for uncertainty reporting " was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Yahoo
28-06-2025
- Business
- Yahoo
IASB seeks feedback on IFRS 16 in post-implementation review
The International Accounting Standards Board (IASB) has launched a formal post-implementation review of IFRS 16 Leases, inviting stakeholders to share their experiences and insights on whether the standard is working as intended. A Request for Information (RFI) has been published as part of this process, with comments due by 15 October 2025. Issued in January 2016 and effective from January 2019, IFRS 16 introduced a major shift in lease accounting by requiring lessees to bring most leases onto the balance sheet. The standard eliminated the distinction between finance and operating leases for lessees, replacing it with a single lease accounting model. The move aimed to improve transparency and comparability in financial reporting by recognising lease assets and liabilities more consistently. Now, more than five years since implementation, the IASB is reviewing whether the standard has delivered the intended benefits and whether the costs of applying IFRS 16 are justified. Stakeholders—including preparers, users, auditors, and regulators—are encouraged to provide feedback on key aspects such as: Usefulness and comparability of information when judgement is applied in measuring lease liabilities; The relevance of disclosures about lease-related cash flows; The cost and complexity for lessees in applying the measurement requirements; and Interactions between IFRS 16 and other IFRS Accounting Standards. Participants are also invited to share their overall views on the effectiveness and clarity of the standard. "IASB seeks feedback on IFRS 16 in post-implementation review" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
