Beyond the GAAP – July-August 2024

The Corporate Sustainability Due Diligence Directive (CSDDD) has now entered into force following its publication in the Official Journal of the European Union on 5 July 2024. It must be transposed into national law by 26 July 2026. This major new directive, which establishes a corporate due diligence duty, will apply to around 6,000 European companies and around 900 non-EU companies. In other European news, this summer’s publications include an EFRAG study on initial ESRS implementation practices, which we look at in detail in a feature in this issue.

On the financial reporting front, this summer saw the IASB publish multiple exposure drafts, including one that proposes illustrative examples of how to apply current IFRS to report the effects of climate-related and other uncertainties in financial statements. This proposal, which responds to significant stakeholder demand, will certainly give rise to interesting discussions over the coming months.