Technical update

Sustainability

The Global Reporting Initiative (GRI) has called on the European Financial Reporting Action Group (EFRAG) to hew its upcoming revised European Sustainability Reporting Standards (ESRS) closely to GRI’s model when these are released on 4 December. They are expected to reduce datapoints required from EU companies. The GRI has recommended replacing direct ESRS data requests with reference to GRI models, to maintain ESRS’s close links with its global system.

Other consultation comments on the ESRS changes include from the World Benchmarking Alliance (WBA), which raised concerns about weakening requirements for value-chain reporting, which, it argued, ‘would significantly reduce the decision-usefulness of disclosures’. The WBA also criticised the revised ESRS draft for not requiring companies to disclose corporate income tax paid in each resident jurisdiction, which the alliance thinks is ‘essential information’ for assessing the fairness of taxation burdens.

EFRAG has released a report advising SMEs on how to apply the EU’s Voluntary Sustainability Reporting Standard for SMEs (VSME). It notes and analyses 100 digital tools, such as greenhouse gas (GHG) calculators and geolocation tools, helping companies report GHG emissions through VSME. Another EFRAG report outlines 223 platforms and initiatives assisting SMEs in generating such sustainability reports.

The US’s Environmental Protection Agency (EPA) has proposed ending the country’s Greenhouse Gas Reporting Program, removing CO2 and other GHG reporting obligations for most American large industrial facilities, all fuel and industrial gas suppliers and CO2 injection sites.

The International Organization for Standardization (ISO) has launched ISO 17298, Biodiversity for organizations, a standard helping reporters assess and address their biodiversity impacts, dependencies, risks and opportunities: ‘The standard embeds biodiversity into core governance and risk management practices – not just sustainability reporting – ensuring alignment with global expectations and organisational operations,’ said the ISO.

The UN’s Sustainable Stock Exchanges Initiative and the Taskforce on Nature-related Financial Disclosures has published guidance for stock exchanges on nature-related financial disclosures. Its goal is to generate ‘clear, consistent, and science-based guidance on nature-related financial disclosure’, helping organisations ‘identify, assess, disclose, and respond to their dependencies and impacts on nature’.

IFRS for SMEs

The IFRS Foundation has developed standalone modules helping reporters follow the IFRS for SMEs accounting standard. Each module details a standard section’s requirements, with added notes and examples; significant estimates and other judgments; comparisons with full IFRS Accounting Standards; plus knowledge tests.

Public sector

The International Federation of Accountants (IFAC), the International Public Sector Accounting Standards Board and the Chartered Institute of Public Finance and Accountancy have reported how governments worldwide have shifted from cash to accrual-based financial reporting. By 2030, 56% of jurisdictions should deliver accrual accounts – it predicts, along with 81% of accrual-reporting jurisdictions applying IPSAS either directly or via IPSAS-focused national standards.

Standards adoption

IFAC has reported that Middle East/North Africa jurisdictions have in recent years accelerated their adoption of international accounting and auditing standards, including IFRS, International Standards on Auditing and the International Code of Ethics for Professional Accountants.

Auditing

The International Auditing and Assurance Standards Board (IAASB) has released its 2025 Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements. It includes five volumes on international auditing practice notes; auditing less-complex entities; sustainability assurance; assurance engagements; and audit quality.

Ethics

The International Ethics Standards Board for Accountants has released its 2025 Handbook of the International Code of Ethics for Professional Accountants (including International Independence Standards). It incorporates new advice on tax planning guidance, using external experts, sustainability reporting and maintaining independence within value chains.