Each quarter, we provide a summary of newly effective and forthcoming standards as well as other significant accounting and financial reporting developments. This edition covers current developments in the quarter ended on March 31, 2022.
Your company, your employees and your customers are likely to be facing challenges in these uncertain times. COVID-19, natural disasters, geopolitical events and inflation are just some of the major issues driving global economic uncertainty today. This evolving uncertainty creates a variety of issues and risks, including changes in consumer demand, disrupted supply chains, staff shortages, increased market volatility and changes to the way we work. Our Financial reporting in uncertain times resource centre will help you understand the potential accounting and disclosure implications. This new resource – which features a range of articles, blogs and podcasts – expands on and replaces the materials previously found in our COVID-19 financial reporting resource centre.
Our 2022 guides to condensed interim financial statements comprise Illustrative disclosures and a Disclosure checklist to help you prepare financial statements in accordance with IFRS Standards. Preparers should carefully evaluate and consider the impact of external events on their 2022 interim financial reporting and provide an update of relevant company-specific disclosures since the last annual reporting date.
A number of new requirements are effective from January 1, 2022. Further information on these new requirements is provided in the section 'Requirements effective in 2022'.
There has also been significant proposals related to disclosure requirements on sustainability. Internationally, new proposals on the first IFRS Sustainability Disclosure Standards mark the next step towards equal prominence for sustainability and financial reporting. The proposals – covering general requirements as well as climate-related disclosures – aim to create a global baseline for investorfocused sustainability reporting that local jurisdictions can build on. This is a critical milestone in the journey towards a consistent global baseline of investor-relevant sustainability reporting. The standards will drive transparency and enable investors to make better informed choices, making companies accountable for sustainability reporting in the same way as they are for financial reporting.
Also, on March 21, 2022, the US Securities and Exchange Commission (SEC) published its climate rule proposal The Enhancement and Standardization of Climate-Related Disclosures for Investors. The proposed rules are intended to provide more consistent, comparable and reliable information so that investors can better evaluate the impact of climate-related matters on a registrant. They would require expansive disclosures, including some in the financial statements and thus subject to audit; in addition to greenhouse gas emissions disclosures that would be subject to assurance. The proposals, if finalized, would also apply to foreign filers who file a Form 20-F with the SEC. However, the proposals have also asked for feedback on whether they should also apply to Canadian filers who file a Form 40-F with the SEC.
