Beyond the GAAP - November 2021

As 2021 approaches its close, we present our traditional year-end overview of the new standards and amendments applicable at 31 December. Once again, no major new standards have been published this year, but insurers should take note: the European Union has finally adopted IFRS 17 (with some tweaks) and it will come into effect from 1 January 2023. Early application is permitted.

Sustainability reporting takes centre stage once again this month in the wake of the COP26 climate change summit in Glasgow, which concluded on 13 November. While some may have felt that the COP did not live up to expectations in terms of commitments made and targets set in order to tackle the climate crisis, it did at least provide a forum for the IFRS Foundation to officially announce the creation of the International Sustainability Standards Board (ISSB). Both the EU (via EFRAG) and the Foundation are now on track to develop sustainability reporting standards, with a shared goal of standardising non-financial reporting, but different road maps. Although the European standards are expected to be broader and more detailed than the ISSB’s standards, the two should still be compatible, so European companies will not have the inconvenience of trying to reconcile different reporting frameworks.