ISSB Proposes Climate Disclosure Relief—Global Reporting Updates

Global Financial Insights is a weekly feature for the Accounts and Audit Module subscribers of Taxmann.com. It provides you with the latest updates on financial reporting and auditing practices from across the globe. Here is this week’s financial update:

1. ISSB proposes amendments to ease climate disclosure compliance

The ISSB has released an Exposure Draft proposing targeted amendments to IFRS S2 to simplify the disclosure of greenhouse gas (GHG) emissions, particularly Scope 3 emissions. Key proposals include relief from reporting certain GHG emissions, flexibility in disaggregating financed emissions, and allowing local measurement methods. The amendments aim to reduce compliance burdens without compromising disclosure quality. Public comments are open until June 27, 2025.

2. IAASB seeks input on amendments for “Working with Experts”

The IAASB has launched a public consultation on amendments to enhance alignment with the IESBA Code regarding the use of external experts in audits and assurance engagements. The proposed changes impact four key IAASB standards, aiming to improve consistency and ethical compliance across engagements. Stakeholders are invited to provide feedback by July 24, 2025, via the IAASB’s online platform.

3. FASB seeks input on debt exchange accounting guidance

The FASB has proposed an Accounting Standards Update (ASU) to simplify the accounting of debt exchange transactions involving multiple creditors. The update aims to clarify when debt exchanges should be treated as extinguishments, addressing concerns with current U.S. GAAP. Stakeholders can submit comments by May 30, 2025, through the FASB’s online feedback platform.

4. FRC highlights issues in structured digital reporting

The FRC’s 2024/25 review of UK-listed companies’ digital financial reports reveals progress in addressing basic errors, but persistent issues remain, such as improper tagging and design flaws. These problems hinder report accessibility and reliability for investors. The FRC plans to enhance its review process and directly address companies with significant tagging issues to improve report quality and support market effectiveness.

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