Beyond the GAAP - April 2024 Issue
On 9 April 2024, the IASB published IFRS 18 Presentation and Disclosure in Financial Statements, the new standard that will replace the current IAS 1. This standard, the culmination of the Primary Financial Statements (PFS) project initiated in 2015, aims to improve the comparability, quality and transparency of financial information for users of financial statements. It will apply retrospectively to reporting periods beginning on or after 1 January 2027 at the latest (subject to endorsement by the European Union, earlier application will be possible). Given the structural changes it introduces, we believe it is important to pay immediate attention to this new standard in order to anticipate the necessary changes to internal systems and processes for producing financial statements and, perhaps, to rethink the way in which financial performance is reported.
On April 24, the European Parliament endorsed the text of the future Corporate Sustainability Due Diligence Directive (CSDDD), which imposes due diligence processes on entities. This text supplements those already published as part of the 2019 Green Deal for Europe (which aims to make the EU the first climate-neutral continent by 2050). The future CSDDD must now be approved by the Council, after which Member States will have two years to transpose it into national law. This major new regulation for businesses will be examined in more detail in this issue.
