IFRS Foundation wants to address sustainability with second board

The IFRS Foundation, under which the IASB operates, today issued a consultation paper for public comment, in which it proposes the establishment of a Sustainable Standards Board as a sister body to the IASB.

In the paper, the Trustees refer to the rapidly increasing importance of non-financial reporting. The IFRS Foundation has repeatedly been called upon to act in this area by capital market players, but also by public authorities and multinational organisations. The purpose of the consultation is to determine on a broad basis whether there is support for an active role for the organisation. If so, proposals will be made on how such a role could be developed. The consultation paper is open for comments until the end of the year and can be obtained from the IASB website.

On the occasion of the publication of the consultation paper, the President of the ASCG, Prof Dr Barckow, said: “The consultation of the general public on this important issue is timely. The number of standardisation approaches in the area of non-financial reporting is objectively far too large to provide the addressees of reporting with comparable information for their respective decisions. In my view, the Foundation’s proposals represent a step worthy of support towards the urgently needed consolidation of existing frameworks. It also offers jurisdictions such as the European Union the opportunity to build on an internationally standardised foundation and to supplement it if deemed necessary. I would be pleased if as many stakeholders from Germany as possible were to participate in the consultation”.