IASB Chair Highlights Importance of Connectivity in Reporting

IASB Chair Highlights Importance of Connectivity in Reporting

By Prathamesh 3 June, 2024
news

On 15 May Andreas Barckow, Chair of the International Accounting Standards Board (IASB), delivered a keynote address at the European Accounting Association (EAA) Annual Congress, emphasising the emerging importance of “connectivity” in financial reporting.

Barckow traced the evolution of connectivity, noting its absence in earlier frameworks but highlighting its current significance. He explained that while consistency and coherence have long been staples of financial reporting, the term “connectivity” now encapsulates the need for integrated, cohesive information across various reporting domains. This shift reflects a broader view of corporate reporting’s purpose, to encompass both financial and sustainability information.

Historically, financial statements were seen as the core of corporate reporting, with other information linking back to them. However, the rise of sustainability reporting, marked by the establishment of the International Sustainability Standards Board (ISSB), has brought a new dynamic. Stakeholders now expect a two-way connectivity, where financial and sustainability reports inform and enhance each other.

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