IASB Initiates Project to Consider Climate-Related Risks in Financial Statements

IASB Initiates Project to Consider Climate-Related Risks in Financial Statements

By Prathamesh 24 March, 2023
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The International Accounting Standards Board (IASB) has added a project to its work plan to explore whether and how companies can provide better information about climate-related risks in their financial statements.

The initiation of the project responds to feedback received from the IASB’s recent Agenda Consultation for the IASB to enhance the reporting of climate-related risks in the financial statements.

In undertaking the project, the IASB will consider the work of the International Sustainability Standards Board (ISSB) to ensure any proposals work well with IFRS Sustainability Disclosure Standards and that any information required by the two boards would be complementary. The first two IFRS Sustainability Disclosure Standards are due to be issued by the end of Q2 2023. Read this article for further information about how the IASB and ISSB’s work on climate-related disclosures is connected.

The project was discussed at the IASB meeting this week for the first time. The project will research to what extent the educational material published in 2020 is helping companies reflect the effects of climate?related risks in the financial statements, and what actions, if any, the IASB could take to further improve information about these matters.

To find out more details please visit : https://www.ifrs.org/