As the impact of climate change intensifies, users of financial statements are increasingly seeking greater transparency of climate-related information in financial statements. The stakeholders have also raised concerns about insufficient information or inconsistencies with other information about climate-related uncertainties provided outside financial reporting. Considering growing implications of climate risk and lack of sufficient disclosure of climate-related information in financial statements, the International Accounting Standards Board (IASB) published an Exposure Draft proposing eight illustrative examples to illustrate the application of IFRS regarding climate-related and other uncertainties in financial reporting. The illustrative examples proposed by the IASB aim to improve the transparency of information in financial reporting and strengthen the link between financial reporting and other components of a company's reporting. The illustrative examples focus on areas such as the assessment of materiality, the disclosure of assumptions and estimation uncertainties, and the disaggregation of information. This edition of Accounting and Auditing Update (AAU) discusses the illustrative examples proposed by IASB related to presentation and disclosure of the effects of climate-related and other uncertainties in its financial statements.
Regulation 30 of the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) requires a listed entity that has listed specified securities, to provide disclosure of material events or information to the stock exchange in accordance with Part A of Schedule III of the Listing Regulations. Further, Regulation 30(11) requires listed entities to confirm, deny, or clarify any reported event or information in the mainstream media which is not general in nature. The rumour verification requirement is applicable to the top 100 listed entities with effect from 1 June 2024 and to top 250 listed entities with effect from 1 December 2024. In order to facilitate a uniform approach for verification of market rumours by equity listed entities, in May 2024, SEBI issued various notifications to prescribe framework to assist entities in implementation of the rumour verification requirement under the Listing Regulations. The publication carries an article on this topic to provide an overview of the rumour verification requirement under SEBI Listing Regulations and related circulars and frameworks.
As is the case each month, we have also included a regular round-up of some recent regulatory updates in India and internationally.
We would be delighted to receive feedback/suggestions from you on the topics we should cover in the forthcoming editions of the AAU.
For more information on this update, please write to aaupdate@kpmg.com.