What's Happening?
The International Financial Reporting Standards (IFRS) Foundation has updated its Due Process Handbook to incorporate the creation of the International Sustainability Standards Board (ISSB) and its standards. The revised handbook outlines the steps used
for developing standards at both the International Accounting Standards Board (IASB) and the ISSB. The update includes feedback from stakeholders who supported the proposed revisions during a public consultation. While the process itself remains unchanged, the handbook clarifies that both boards follow a rigorous, inclusive, and transparent standard-setting process. It also details the process for making changes to the SASB standards, which the ISSB inherited from the Sustainability Accounting Standards Board.
Why It's Important?
The update to the IFRS Foundation's handbook is crucial for ensuring that the development of international accounting and sustainability standards remains transparent and accountable. By clarifying the standard-setting process, the foundation aims to enhance the credibility and acceptance of its standards globally. This is particularly important as companies increasingly focus on sustainability and environmental, social, and governance (ESG) reporting. The revised handbook will guide companies in applying these standards, potentially leading to more consistent and reliable sustainability disclosures. This development is likely to impact how businesses report their financial and sustainability performance, influencing investor decisions and regulatory compliance.
