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 December 31, 2022.
Climate-related matters continue to top the list of priorities for investors and other stakeholders with their greater focus on consistency of financial and non-financial information across the annual report. However, they also recognize the challenges companies face from the current macroeconomic environment, such as inflation, rising energy prices, the Ukraine-Russia conflict and the continued threat of COVID-19. Our latest IFRS Today podcast offers clear and concise points for companies to consider when preparing their year-end financial statements.
Refer to our financial reporting resource centres that are designed to help companies prepare financial statements: Financial reporting in uncertain times resource centre which features a range of articles, blogs and podcasts to explore the potential accounting and disclosure implications, and the Climate change financial reporting resource centre which provides additional resources to help you identify the potential financial statement impacts for your business of climate-related risks and opportunities.
Interest rates continue to rise in Canada and many other countries. This may impact the measurement of assets, liabilities and net interest expense, and trigger impairment losses. Refer to our webpage where we highlight some of the key financial reporting areas that may be affected by rising interest rates.
In October 2022, the IASB issued Non-current Liabilities with Covenants (Amendments to IAS 1) (the 2022 amendments), which further amends the Classification of Liabilities as Current or Non-current (Amendments to IAS 1) that were issued in January 2020 (the 2020 amendments). The 2022 amendments clarify, among other items, that only covenants with which a company must comply on or before the reporting date affect the classification of a liability as current or non-current. Refer to our web article for more information.
Proposals from the International Sustainability Standards Board (ISSB), which are ambitious and would have a significant impact on companies, continue to develop at a fast pace. We're delighted to announce the launch of our dedicated Sustainability reporting resource centre, which provides practical guidance to help companies get ready for the new standards, capturing the latest thinking together with our insight.
The January 2023 implementation date of IFRS 17 Insurance Contracts in now here. It is important that insurers continue to consider the pre-transition disclosures on the impact of these standards in their year-end financial reporting prior to implementation. Investors, regulators and other stakeholders will expect these to provide timely and useful information. Refer to our seven-step action plan which helps companies prepare for reporting in 2022 and 2023.
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.
Refer to our 2022 Guides to financial statements – which include Illustrative disclosures, Supplements to illustrative disclosures, Annual illustrative disclosures for sectors, and Disclosure checklists – which will help you prepare financial statements in accordance with IFRS Standards.
