The European Financial Reporting Advisory Group (EFRAG) has released its Feedback Statement on the International Accounting Standards Board (IASB)’s Exposure Draft (ED) on Climate-related and Other Uncertainties in Financial Statements. The statement details stakeholder input and how it influenced EFRAG’s Final Comment Letter (FCL), submitted on 28 November 2024.
Key Findings:
- Stakeholder feedback refined EFRAG’s position, shaping the FCL.
- The proposed examples in the ED improve financial reporting, auditing, and supervision of climate-related uncertainties.
- EFRAG supports including these examples as illustrative guidance under IFRS Accounting Standards.
- The ED is seen as a pragmatic first step toward meeting stakeholder expectations, with further refinements recommended.
Future Recommendations:
EFRAG has urged the IASB to:
Finalize the ED’s examples with targeted improvements.
Explore future standard-setting for non-climate-related uncertainties.
Strengthen connectivity of financial disclosures through collaboration with the International Sustainability Standards Board (ISSB).
The publication underscores EFRAG’s commitment to enhancing transparency in sustainability-related financial reporting and aligning with international accounting frameworks.
To find out more details please visit : https://www.efrag.org/