IFRS Outlines Work Priorities, Establishes Montreal Center of ISSB
The International Financial Reporting Standards (IFRS) Foundation published its annual report and, in conjunction with the Chartered Professional Accountants of Canada (CPA Canada), announced an agreement to establish the Montreal center of the International Sustainability Standards Board (ISSB).
The ISSB, established at the COP26 climate conference in November 2021, states that it will operate a multi-location model to deliver consistent and comparable global standards for reporting on environmental, social, and governance (ESG) matters. The Montreal agreement, a private sector memorandum of understanding, calls on CPA Canada to work collectively with the broad array of stakeholders to help fund and lend support to the ISSB and the Montreal center. The five-year agreement states that Montreal will host significant standard-setting responsibilities and associated functions, including a share of board meetings, leadership, and resources that reflect the Montreal's importance to the ISSB. The Montreal center will host key functions on behalf of the ISSB, including the coordination of activity across the Americas and will work in close cooperation with the San Francisco office (headquarters of the Value Reporting Foundation (VRF), which is expected to be consolidated into the IFRS Foundation by June 30, 2022).
The IFRS Foundation also published its annual report and audited financial statements for the year ended December 31, 2021. In 2021, IFRS, among its other activities, enhanced widespread stakeholder engagement on strategic priorities on sustainability-related disclosures and conducted early exploratory work and provided input on the digital reporting strategy for the ISSB. The report discusses not only the performance during the year but also the following work priorities for 2022 and beyond:
- Implement multi-location model for the ISSB, establish operations and decision-making processes, engage with ISSB advisory groups
- Publish exposure drafts and proposed taxonomy corresponding with the proposed climate and general disclosure requirements standards for public consultation
- Work in close cooperation with the IASB and ISSB to ensure alignment and compatibility between IFRS Accounting Standards and IFRS Sustainability Disclosure Standards
- Publish a feedback statement and finalize the IASB’s priorities for 2022 to 2026 in response to the Third Agenda Consultation
- Publish an exposure draft proposing amendments to the IFRS for SMEs Accounting Standard, informed by feedback to the comprehensive review
- Support and develop IFRS Accounting Standards and Taxonomy
- Complete post-implementation review of IFRS 9 and other standards
Keywords: International, Accounting, Banking, Reporting, ESG, Climate Change Risk, IFRS 9, Annual Report, ISSB, Disclosures, IFRS Taxonomy, IASB, IFRS for SMEs, IFRS
Featured Experts
Scott Dietz
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
James Partridge
Credit analytics expert helping clients understand, develop, and implement credit models for origination, monitoring, and regulatory reporting.
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Previous Article
ECB Report Notes Pandemic Did Not Impair Financial IntegrationRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.