IFAC continues to speak out on behalf of the global accounting profession on the topic of non-financial reporting, most recently in response to the European Commission’s review of the Non-Financial Reporting Directive (NFRD). This review marks another valuable step in the dialogue and evolution toward relevant, reliable, and comparable reporting of non-financial information. A summary of IFAC’s response is available on its website.

IFAC urges the Commission to adopt a global mindset by engaging input from a broad range of international stakeholders in determining the best way forward.  Steps taken must “fit within” a global system and avoid regional regulatory fragmentation.

Non-financial reporting answers the call from investors and other providers of capital for better, broader information about company performance and prospects for value creation, while also helping identify opportunities to support sustainable—and less carbon-reliant—business models. In the post-COVID world, corporate reporting that reflects the needs of a broad range of stakeholders will be particularly important to communicate on an organization’s performance and priorities.   

As a Network Partner of the B20, IFAC calls on global bodies—including the G20—to encourage policy-makers, standard-setters, and regulators to facilitate harmonization towards a globally-acceptable approach to reporting ESG metrics and disclosures.

IFAC supports reporting requirements that address both societal and company performance impacts and that anticipate the needs of specific markets. Any jurisdiction-specific reporting requirements need to conform with metrics and disclosures that are part of a globally accepted system so that comparability is achieved. 

The accountancy profession is critical to evidence-based decision making, reliable information gathering, and consistent, comparable corporate reporting. Active engagement by the profession on this topic will maximize the benefits of a global solution to non-financial reporting that best serves shareholders and the broader public interest.

As the global voice of the accounting profession, IFAC remains committed to advocating for a comprehensive approach to non-financial reporting through its contributions to global consultations and engagements.

Ruslana Kuzina works as an assistant professor at ONEU. She is also a qualified business coach of international certification programs (CAP/CIPA, ICFM Ukraine, ACCA DipFR). Her professional interests lie in the area of education policy, integrated reporting, and leadership. She also devotes much of her time to assist professional accountancy organizations in bringing professional education in line with the international best practices and modernizing accounting education offered by universities and other providers of accountancy education.

Climate change presents an existential threat for individuals, societies and economies. Compounded by the economic losses that the COVID-19 pandemic presents, there is a need for financial reporting and information that provides a clear, forward-looking, long-term view of an organization’s finances and sustainability – particularly for governments and other public sector entities.

As principles-based standards, governments and public sector entities can apply existing IPSAS literature to report on sustainability issues, including climate change risks, and to communicate progress towards achieving goals such as the SDGs.

To help stakeholders understand how to apply the Board’s current guidance to provide clear, comparable, and relevant information on climate change, the IPSASB Staff have published a Questions & Answers (Q&A) document highlighting the relevant standards and guidance for the public sector. The Staff Q&A addresses key questions such as:

• Is there any existing IPSASB literature relevant to consider for climate change reporting?
• When governments or public sector entities have strategies and programs in place to manage climate change risks, how should these be treated?
• When governments or public sector entities adopt the UN’s Sustainable Development Goals (SDGs), what IPSAS financial reporting guidance should be considered?

The Staff Q&A on Climate Change is intended to help drive transparency and sustainability in reporting on public finances. Further guidance on the recognition, measurement, presentation and disclosure of natural resources is also being considered by the IPSASB as part of its project on Natural Resources.

About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.

Arnaud is a founder of his own accountancy firm in France with 6 partners and 150 staff. He has been the Vice-Président of the French Chartered Accountants PAOs for four years and he is now the CEO of Federation Internationale des Experts-Comptables Francophone, or FIDEF, the Fédération of the French-speaking Chartered Accountants and Auditors National Institutes representing 55 member PAOs in 37 countries.

Yasmine is a Technical Advisor in the IFAC SMP AG. She is also currently a Director – Governance at the AICPA. Yasmine oversees women’s initiatives programs, firm services and international projects within AICPA. Prior to joining the AICPA, Yasmine worked for CPA firms of various sizes in the US and Canada: a big four, a national firm and a local firm. 

Ms. van Onselen is an experienced, strategic executive with an extensive background across the financial services as a litigation lawyer and with various listed, government and not-for-profit organizations including membership bodies.

Prior to joining Chartered Accountants Australia and New Zealand, Ms. van Onselen held a number of senior roles over six years at Westpac Group, including Managing Director of RAMS, Chief of Staff to the CEO and General Manager of Deposits & Unsecured Lending. She was also the Global Director of Women’s Markets and Inclusion & Diversity.

Ms. van Onselen has more than 20 years’ experience as a non-executive director. She is currently a non-executive director at financial services company Automic and the commissioner of Legal Aid NSW.

Ms. van Onselen commenced her career practicing as a lawyer and ultimately became a partner in a specialist corporate and commercial practice in Western Australia. She holds a Bachelor of Laws and Master’s of Applied Finance, and completed the Company Directors Course at the Australian Institute of Company Directors.

This week the IAASB hosted two different webinars on consultations that are currently open for public comment. The recordings of these webinars can be found on the IAASB’s website as listed below.

The first webinar was hosted on June 10, 2020 and covered the current Public Consultation on Proposed Guidance: Extended External Reporting (EER) Assurance. The recording and presentation slides of this session can be found here.

The second webinar was hosted on June 11, 2020 and covered the recently released Exposure Draft of Proposed ISA 600 (Revised), Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors). The recording and presentation slides of this session can be found here.

The ISA 600 Task Force will host a second webinar on August 13, 2020 8:00 am – 9:30am EDT, where time will be spent answering questions in regard to the Proposed ISA 600 (Revised). You can submit any questions you may have to jaspervandenhout@iaasb.org till July 24, 2020.