IASB initiates project to enhance reporting of climate-related risk in financial statements
Following last week’s publication of EFRAG’s research conclusions on the status of climate-related risk reporting in financial statements, the International Accounting Standards Board (IASB) has announced next steps to follow up on recommendations.
The IASB project will explore targeted actions to improve reporting of climate-related and other uncertainties in financial statements. EFRAG’s research suggested better and more illustrative guidance was needed to enhance capacity. Potential measures being considered by the IASB include developing educational resources, illustrative examples, and focused amendments to existing IFRS Accounting Standards, aimed at enhancing the application of current requirements.
As part of this project, the IASB has already consolidated all available materials that support companies in reporting the impacts of climate-related and other uncertainties in financial statements. These resources can be accessed on the project page, which will also include translations of educational materials released earlier this year.
Recognising the dynamic nature of this field, the IASB will also keep a look out for continued developments, in case further action is needed.
Read more here.