The Trustees of the IFRS Foundation announced the formation of the International Sustainability Standards Board (ISSB) on 3 November 2021, following strong market demand for its establishment.
The ISSB is developing—in the public interest—standards that will result in a high-quality, comprehensive global baseline of sustainability disclosures focused on the needs of investors and the financial markets.
Sustainability factors are becoming a mainstream part of investment decision-making. There are increasing calls for companies to provide high-quality, globally comparable information on sustainability-related risks and opportunities, as indicated by feedback from many consultations with market participants.
There is also a strong desire to address a fragmented landscape of voluntary, sustainability-related standards and requirements that add cost, complexity and risk to both companies and investors.
In March 2022 the ISSB published:
- Exposure Draft IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information, proposing overall requirements for an entity to disclose sustainability-related financial information about its sustainability-related risks and opportunities.
- Exposure Draft IFRS S2 Climate-related Disclosures, building on the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) and incorporating industry-based disclosure requirements derived from SASB Standards.
The Standards will be effective as from 1 January 2024. Similar to the accounting policies, it is import to properly implement the standards and ensure the right application by timely and accurately accounting to disclose the required information. The Fidugius Accounting & Reporting facilitates communication of the company’s sustainability policies in the best way possible.
The ISSB and IFRS
Countries that adopted IFRS:
Over than 150 countries around the world have adopted IFRS, either fully or partially. Some of the major countries that have fully adopted IFRS include the UK, Australia, Canada, India, Japan, and South Africa. The European Union has also adopted IFRS, and all publicly traded companies in the EU are required to use IFRS for their consolidated financial statements.
Within the EU, the EGRAG or the European Financial Reporting Advisory Group is responsible for providing advice to the European Commission on matters related to the application of IFRS. It provides input on the endorsement process for new or revised IFRS Standards, as well as on the development of EU-specific guidance on the application of IFRS.
ISSB standards and the Fidugius solution
Not only the IFRS standards company’s accounting policies are available in the Fidugius accouting and reporting manual , but also communication about the company’s sustainability policies.
Are you curious about the smart solution which can provide you with all the necessary company accounting policies at any time? Ask a demo and convince yourself how Fidugius can help you to do your work more easily!