[Global Financial Insights] IASB June 2026 Update and More

1. Objective of IASB’s Ongoing Projects

The discussions form part of IASB’s broader objective to improve consistency, transparency and comparability in financial reporting.

These projects are expected to support clearer application of IFRS Standards and enhance the usefulness of financial statements for users.

2. ISSB June 2026 Update

The International Sustainability Standards Board (ISSB) has continued its deliberations on the proposed IFRS Practice Statement on Nature-related Disclosures.

The Practice Statement is expected to provide guidance to entities in reporting nature-related risks and opportunities.

3. Focus on Nature-Related Disclosures

The ISSB discussed key aspects of the proposed Practice Statement, including:

• Terminology;
• Disclosure metrics;
• Application requirements; and
• Linkages with existing sustainability reporting practices.

The Board agreed to use the term “environmental resources” in the proposed Practice Statement.

4. Use of TNFD Metrics

The ISSB also proposed allowing entities to consider relevant Taskforce on Nature-related Financial Disclosures (TNFD) metrics while preparing nature-related disclosures.

This is expected to support better alignment between sustainability reporting frameworks and improve consistency in nature-related reporting.

5. Expected Impact

The proposed Practice Statement is expected to help entities provide more structured and comparable disclosures on nature-related risks and opportunities, alongside existing sustainability-related financial disclosures.

6. IAASB Issues ISSA 5000 Materiality FAQs for Sustainability Assurance Engagements

The International Auditing and Assurance Standards Board (IAASB) has released a new FAQ publication to support the implementation of ISSA 5000.

The publication focuses on the application of materiality in sustainability assurance engagements.

7. Guidance on Materiality

The FAQs explain how materiality should be considered throughout a sustainability assurance engagement.

The guidance covers important concepts such as:

• User information needs;
• Qualitative and quantitative disclosures;
• Double materiality considerations;
• Materiality judgments during planning and performance; and
• The role of materiality in evaluating assurance outcomes.

8. Illustrative Examples Included

The publication also includes illustrative examples to help practitioners understand the practical application of materiality in sustainability assurance engagements.

These examples are intended to promote consistent implementation of ISSA 5000.

9. Objective of the FAQs

The FAQs aim to support assurance practitioners in applying materiality appropriately and consistently when performing assurance engagements over sustainability information.

10. FASB Seeks Comments on Fair Value Measurement of Restricted Equity Securities

The Financial Accounting Standards Board (FASB) has issued a proposed Accounting Standards Update relating to the fair value measurement of restricted equity securities held by investment companies.

The proposed amendments focus on equity securities that are subject to contractual sale restrictions.

11. Proposed Treatment of Sale Restrictions

The proposal would require investment companies to consider contractual sale restrictions when measuring the fair value of such equity securities.

This would allow the fair value measurement to better reflect the assumptions that market participants would use in pricing the securities.

12. Additional Disclosure Requirements

The proposed ASU also introduces additional disclosure requirements relating to discounts arising from contractual sale restrictions.

These disclosures are intended to improve transparency and help users better understand the impact of such restrictions on fair value measurements.

13. Objective of the Proposal

The proposed amendments seek to:

• Improve fair value measurement of restricted equity securities;
• Align reported values with market participant assumptions;
• Enhance transparency through additional disclosures; and
• Improve the usefulness of financial reporting by investment companies.

14. Comments Invited

FASB has invited comments on the proposed Accounting Standards Update until 17th July 2026.

15. Key Takeaway

This week’s Global Financial Insights covers key developments from the IASB, ISSB, IAASB and FASB. The updates focus on lease payment forgiveness, financial instrument derecognition, equity method accounting, nature-related disclosures, materiality in sustainability assurance engagements and fair value measurement of restricted equity securities.