In June 2021, the European Financial Reporting Advisory Group (EFRAG) launched a consultation that lasted until mid-September. Their aim was to discuss future requirements for EFRAG as technical advisor to the European Commission in the preparation and adoption of European sustainability reporting standards, similar to how the organization is currently providing technical advice on adopting new IFRS standards in the EU. Preparation for the implementation of the Corporate Sustainability Reporting Directive (CSRD) may require the use of common European sustainability standards.

Summarizing the findings from the monitoring of IFRS 9 Financial Instruments implementation by the EU banking institutions and the model of expected credit losses (ECL), the European Banking Authority (EBA) notes significant efforts of credit institutions in establishing accounting practices. At the same time, the EBA is cautious on the emergence of unusual approaches due to the pandemic, which are unexpected and reduce the comparability of financial statements, and draws the attention of European regulators to this fact.

The UK Financial Conduct Authority (FCA) has confirmed its intention to allow the temporary use of ‘synthetic’ sterling and yen LIBOR rates in all existing contracts (other than OTC derivatives), that have not yet been changed to alternative rates and will not have time to do so by the end of the year. The use of ‘synthetic’ rates in any new contract is not allowed.

The European Financial Reporting Advisory Group (EFRAG) has been creating sustainability reporting pillar. In this regard, it was necessary to enlarge the membership of its General Assembly to allow more organizations to become EFRAG Member Organizations and thus contribute to the development of sustainability reporting standards.

The US Center for Audit Quality (CAQ) has a handy tool called the Audit Committee Transparency Barometer. For eight years in a row, it has been recording cybersecurity disclosures made by audit committees of the largest S&P 500, as well as S&P MidCap and S&P SmallCap companies. It is based on the idea of ​​encouraging more detailed disclosures in reports for future shareholders’ meetings to increase investor confidence and facilitate the work of external auditors.

The US Financial Accounting Standards Board (FASB) has proposed Accounting Standards Update to modify requirements for interim financial reporting and disclosures in the notes. Comments will be accepted until the end of January, 2022. The changes are proposed as part of the FASB framework project to simplify and improve the effectiveness of disclosures.

The International Public Sector Accountings Standards Board (IPSASB) has issued an update to the current IPSAS 5 “Borrowing Costs” standard, providing it with an illustrative guidance and examples. These additional materials illustrate how the borrowing costs can be capitalized in various situations that regularly occur in the accounting practice of public organizations.

The new Sustainability Disclosure Requirements (SDR) have forced companies to think about preparing for the new reporting. It will not apply to everyone, but only to large companies, as well as investment and pension consultants, but for a significant business segment, the disclosure of data on impact on climate change will be at least partially new. Completely new for most will be the disclosure of clear plans to achieve carbon neutrality.