Intangibles
In his inaugural speech, the new chair of the International Accounting Standards Board (IASB) said the body will consider reviewing its standard on intangibles, IAS 38.
Following feedback from advisory groups and consultative bodies, Andreas Barckow said IAS 38 is ‘more than 20 years old and has never been revisited other than for consequential changes resulting from other projects’, adding: ‘The significance of intangibles, especially self-generated intangibles, has increased substantially’, with IFRS Standards failing to ‘capture well’ service ‘value creation or consumption’.
Barckow added that consultees had asked the IASB to be aware of the volume of reform and consultations it asks accountants to handle. Another concern was resources for dealing with the proposed International Sustainability Standards Board (ISSB).
Financial instruments
The IASB wants feedback for a post-implementation review of the classification and measurement requirements in its financial instruments standard IFRS 9, which has been in force for reporting periods beginning on or after 2018. The standard, for instance, insists that the books reflect changes in cashflows resulting from interest rate changes, and that they measure financial assets based on ‘business model assessments’ of income and the sale of assets.
Cryptocurrencies
The Committee on Payments and Market Infrastructures (CPMI) and the International Organisation of Securities Commissions (Iosco) are consulting on proposed global guidance that says stablecoin transactions should observe international standards for payment, clearing and settlement. The two bodies have suggested a method of applying their existing principles for financial market infrastructures (PFMI) to systemically important stablecoin arrangements, including novel stablecoin features that contrast with fiat currency transactions.
Sustainability
The GRI (Global Reporting Initiative) has revised its universal standards to improve clarity on its reporting principles and structures. The new standards reflect the due diligence expectations of the UN and the OECD, along with European Union legislation. A new GRI 1, Foundation, standard introduces the purpose and system of GRI standards and explains key concepts for sustainability reporting. GRI 2, General Disclosures, covers reporting practices, activities, workers, governance, strategy, policies and stakeholder engagement. GRI 3, Material Topics, explains how organisations should determine, list and manage material topics.
The GRI has also released a new sustainability reporting standard for oil and gas, GRI 11, Oil and Gas Sector, facilitating the energy sector’s complex transparency requirements. The standard includes disclosures on climate change, site closures and rehabilitation, biodiversity, the rights of indigenous peoples, anti-corruption issues, and water and waste management.
The Value Reporting Foundation has published a guide on developing a transition plan to move an organisation to integrated reporting. Transition to integrated reporting: a guide to getting started explores the basics of integrated reporting, identifies the catalysts for change, and comes with a step-by-step implementation guide, including a sample roadmap.
The Value Reporting Foundation has also released SASB (formerly the Sustainability Accounting Standards Board) standards on XBRL taxonomy, an international standard covering the digital reporting of sustainability information. The goal is to make environmental, social, and corporate governance (ESG) disclosures simpler for businesses, easing the data aggregation and analytics challenges.
A third release by the Value Reporting Foundation is the publication of an updated Turkish translation of the International IR Framework, which has been overseen by the Integrated Reporting Network Turkiye (ERTA).
Quality management
The International Auditing and Assurance Standards Board (IAASB) has released an updated version of its First-time implementation guide on ISQM 1, which covers quality management for audit and assurance firms.
