New guidance to help professional accountants and finance professionals deliver robust greenhouse gas (GHG) reporting has been released today by the International Federation of Accountants (IFAC) and We Mean Business Coalition (WMBC), in partnership with Accounting for Sustainability (A4S), Global Accounting Alliance (GAA) and World Business Council for Sustainable Development (WBCSD).

The guidance is a response to rapidly escalating impacts of climate change and emerging mandatory requirements that companies disclose robust information about their GHG emissions and climate risks and opportunities to help investors allocate capital to the ‘greenest’ companies.

It aims to guide CFOs, accountants and finance professionals to build on existing systems and processes in order to undertake or enhance cost-effective and investor-grade GHG reporting.

The first part of the guidance, 8 Steps to Enhance GHG Reporting: A Roadmap for Accounting and Finance Professionals, provides finance and accounting professionals with a roadmap to engage with others across their business to prepare for GHG emissions reporting requirements aligned to financial reporting processes. While the second, GHG Reporting Building Blocks for Accountants, equips accountants with the technical guidance necessary to collect and enhance the quality of data related to all scopes of GHG emissions at individual entity and group levels.

The publications have been released in preparation for the upcoming international and jurisdictional standards and regulations that will make it mandatory for companies to advance GHG reporting to new levels and provide investors with decision-useful information related to climate risks and opportunities. These include the International Sustainability Standards Board (ISSB) General Sustainability-related Disclosures (IFRS S1) and Climate-related Disclosures (IFRS S2), the European Financial Reporting Advisory Group's (EFRAG) European Sustainability Reporting Standards (ESRS) and proposed rules for climate change disclosures by the U.S. Securities and Exchange Commission (SEC).

"With their ideal positioning to champion an integrated mindset by connecting financial and emissions data and processes and analyses, professional accountants and finance professionals play a crucial role in providing decision-useful and trusted GHG reporting to management and capital markets,” said Kevin Dancey, IFAC CEO. “The release of this guidance is a significant step towards enabling these professionals to prepare for the increasing demand for investor-grade climate reporting by aligning GHG emissions accounting with financial accounting."

Maria Mendiluce, CEO, We Mean Business Coalition said: “This guidance demonstrates that robust GHG reporting is not an onerous task, but rather one that can be incorporated, at minimal cost, into existing systems and processes. By working together, finance and sustainability professionals can report in the most efficient way and, in doing so, attract greater investment from those capital providers looking for the most sustainable companies.”

Explore the guidance.

About IFAC 
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce. 

About WMBC
We Mean Business Coalition (WMBC) is a global nonprofit coalition working with the world’s most influential businesses to take action on climate change. Together we catalyze business leadership to drive policy ambition and accelerate the transition to a low-carbon economy. Our mission is to ensure that the world economy is on track to avoid dangerous climate change by 2020 while delivering sustainable growth and prosperity for all.

At a time when companies, investors, and financial markets are calling for increased transparency and accountability for anti-corruption efforts, the International Federation of Accountants (IFAC), Transparency International UK (TI-UK) and the World Economic Forum’s Partnering Against Corruption Initiative (the Forum’s PACI) have published a comprehensive review of anti-corruption corporate reporting by the largest publicly traded companies worldwide.

The report decodes the current state of anti-corruption reporting practices and highlights the urgent need for enhanced quality, reliability, and comparability in this crucial area. It also raises a series of policy questions around jurisdictional differences, comparability, governance, and the completeness and reliability of the information provided.

IFAC CEO Kevin Dancey said: “Our findings are mixed—the report reveals both progress and challenges, and significantly different disclosure practices in jurisdictions. We must collectively address the gaps and differences to ensure anti-corruption reporting achieves the same level of rigor, transparency, and trust as financial reporting. IFAC, TI-UK and the Forum’s PACI are committed to engaging stakeholders based on this research and holding ongoing conversations to drive meaningful change.”

TI-UK CEO Daniel Bruce said: “Corruption has far-reaching negative consequences, undermining public services, economic opportunities, and achieving the United Nations Sustainable Development Goals. Fighting corruption requires collaboration among diverse stakeholders, including governments, businesses, and society at large. Through collaboration and dialogue, we can work toward a future where businesses uphold the highest standards of integrity, contribute to sustainable development, and combat corruption effectively."

IFAC, TI-UK and the Forum’s PACI urge stakeholders to join forces in advancing anti-corruption reporting, enhancing its quality, reliability, and comparability. By working together, we can forge a future where corruption is eradicated, economic progress is safeguarded, and sustainable development becomes a shared reality.

Findings

• Nearly all (95%) of companies reviewed disclose some information about anti-corruption policies, training, and/or results.
• Most of these companies use internationally recognized sustainability standards (61% use GRI and 17% use SASB) to report anti-corruption information.
• There is little comparability between anti-corruption disclosure.
• Few companies disclose corruption incidents (37%) or the costs of corruption (4%).
• The majority (72%) of companies are not obtaining assurance on anti-corruption information.

To access the full report, visit the IFAC website.

About IFAC
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

About Transparency International-UK
Transparency International (TI-UK) is the UK’s long standing independent anti-corruption organisation, working to expose and prevent corruption so that no one in the UK and where the UK has influence has to suffer its consequences. TI-UK is a leading member in the Transparency International global movement made up of more than 100 country chapters around the world.

More information is here: www.transparency.org.uk

About the World Economic Forum’s Partnering Against Corruption Initiative
Launched in 2004, the World Economic Forum’s Partnering Against Corruption Initiative (PACI) serves as the principal CEO-led platform in the global anti-corruption arena. PACI has over 80 signatories from different sectors across the globe and is one of the Forum’s strongest cross-industry collaborative efforts, creating a highly visible, agenda-setting platform by working with business leaders, international organizations, civil society, academia and governments to address corruption, transparency and accountability.

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The International Bar Association (IBA) and the International Federation of Accountants (IFAC) have announced a Memorandum of Understanding (MoU) that formalises and demonstrates a commitment to closer cooperation between the two organisations and the legal and accountancy professions as a whole.

This MoU provides a framework for expanding the cooperation between the IBA and IFAC, with a particular focus on anti-corruption and how the professions can work more closely together in the fight against money-laundering and economic crime., with key stakeholders such as the United Nations and Financial Action Task Force. Other areas of cooperation include maintaining the reputations and integrity of the accountancy and legal professions; ensuring that initiatives to regulate both professions are proportionate and fit-for-purpose; and enhancing the strength of the IBA and IFAC’s collective voice on global policy issues so that the legal and accountancy professions are in the best position to serve the public interest.

Dr Mark Ellis, IBA Executive Director, commented: ‘As the global voices for our respective professions, the IBA and IFAC are uniquely placed to contribute to global policymaking in the public interest. This MoU marks a natural progression of the collaborative work the IBA and IFAC have been undertaking for several years. There is strength in our collective voice as we aim to bring about positive, meaningful change in the anti-corruption sector. We look forward to implementing the framework set out in this Memorandum and furthering our collaborative efforts with IFAC.’

Kevin Dancey, IFAC Chief Executive Officer, remarked: ‘I hope that our relationship, at the global level, inspires and encourages professional accountancy organisations and bar associations to develop stronger bilateral relationships in their jurisdictions to increase their impact in the public interest and achieve shared goals.’

Cooperation between the IBA and IFAC has increased in recent years in the context of The IBA and IFAC Anti-Corruption Mandate (July 2018) and close engagement on the roles of the two professions in combatting corruption and financial crime.

In June 2021, the IBA and IFAC co-hosted a side event at the UN General Assembly Special Session Against Corruption in New York on the essential role both the accountancy and legal professions play in fighting corruption on a global scale, with a particular focus on issues of professional ethics and independence. Following on from this event, at the ninth session of the UN Convention Against Corruption Conference of States Parties in December 2021, the IBA and IFAC co-hosted a side event examining the ways in which the accountancy and legal professions act as ‘gatekeepers’ of the global financial system in terms of the prevention, identification and mitigation of corruption.

ENDS

Notes to the Editor

1. The International Bar Association (IBA), the global voice of the legal profession, is the foremost organisation for international legal practitioners, bar associations and law societies, with members based in more than 170 jurisdictions. Established in 1947, shortly after the creation of the United Nations, with the aim of protecting and advancing the rule of law globally, the IBA was born out of the conviction that an organisation made up of the world's bar associations could contribute to global stability and peace through the administration of justice. The IBA acts as a connector, enabler, and influencer, for fair practice and accountability worldwide and through its global membership, it influences the development of international law reform and helps to shape the future of the legal profession throughout the world.

2. The International Federation of Accountants (IFAC) is the global organisation for the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

3. The IBA Anti-Corruption Committee provides an international forum for private and public-sector practitioners to meet and discuss anti-corruption laws, compliance practices, enforcement trends and asset recovery issues. It facilitates the sharing of best practice and the regular communication of legal and other developments, including new legislation, case-law, prosecution guidance and government policy, as well as developments in civil society, the private sector and international organisations.

4. Find the IBA on social media here:

• IBA (@IBAnews)
• twitter.com/IBAnews
• twitter.com/IBAevents
• www.facebook.com/internationalbarassociation
• www.linkedin.com/company/international-bar-association

5. Find IFAC on social media here:

• twitter.com/ifac
• linkedin.com/company/ifac
• facebook.com/InternationalFederationOfAccountants
• youtube.com/IFACMultimedia

The International Public Sector Accounting Standards Board^® (IPSASB^®), developer of IPSAS®, international accrual-based accounting standards for use by governments and other public sector entities around the world, has issued an integrated package of revenue and transfer expenses pronouncements comprising:

• Updated Conceptual Framework: Chapter 5, Elements in Financial Statements;
• International Public Sector Accounting Standard® (IPSAS®) 47, Revenue; and
• IPSAS 48, Transfer Expenses.

The three pronouncements update and simplify existing principles, while filling gaps in the IPSAS literature, resulting in more consistent guidance for IPSAS users and better support for implementation globally. Informed by stakeholder feedback and refinement over the course of several years, the pronouncements introduce:

• A single up-to-date source of guidance applicable to all revenue transactions across the public sector; and
• A new straightforward accounting model for the recognition and measurement of transfer expenses in the public sector.

“These pronouncements address a significant proportion of transactions for all public sector entities, and their publication is a major milestone in public sector accounting,” said Ian Carruthers, IPSASB Chair. “By providing a robust principle-based approach to accounting for revenue and transfer expense transactions, these pronouncements will help increase the transparency and accountability of public sector transactions around the world.”

The updates to Chapter 5 of the Conceptual Framework revise the definitions of an asset and a liability and add new guidance on the transfer of resources, unit of account, and binding arrangements that are equally unperformed. These changes provide a strong foundation for the guidance in the new standards.

IPSAS 47 replaces IPSAS 9, Revenue from Exchange Transactions and IPSAS 11, Construction Contracts, and IPSAS 23, Revenue from Non-Exchange Transactions (Taxes and Transfers) with two accounting models for the recognition and measurement of public sector revenue transactions, based on the existence of a binding arrangement. The new IPSAS is aligned with IFRS 15, Revenue from Contracts with Customers while broadening its applicability across the public sector. Additional guidance is included to help entities apply the accounting principles to public sector-specific transactions, such as capital transfers and compelled transactions.

IPSAS 48 introduces guidance for transfer expenses, where a transfer provider provides resources to another entity without receiving anything directly in return, which is common situation in the public sector globally. The accounting for transfer expenses is driven by whether the transaction results in an enforceable right to have the transfer recipient satisfy their obligations. To operationalize this principle, IPSAS 48 presents two accounting models based on the existence or not of a binding arrangement.

The effective date for both IPSAS 47 and IPSAS 48 is January 1, 2026, with earlier application permitted. Updates to the Conceptual Framework are effective when published.

How to Access
To access the Conceptual Framework Update: Chapter 5, Elements in Financial Statements, IPSAS 47, Revenue, and IPSAS 48, Transfer Expenses, their summary At-a-Glance documents, and webcasts, visit the IPSASB website. The IPSASB encourages IFAC members, associates, and Network Partners to promote the availability of these pronouncements to their members and employees.

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.

International Public Sector Accounting Standard^® (IPSAS) 45 replaces IPSAS 17, Property, Plant, and Equipment by adding current operational value as a measurement basis in the updated current value model for assets within its scope, identifying the characteristics of heritage and infrastructure assets, and adding new guidance on how these important types of public sector assets should be recognized and measured.