BDO submits comment letter on ED Climate-related and Other Uncertainties in Financial Statements

BDO has submitted its comment letter to the IASB on Exposure Draft 2024/6 Climate-related and Other Uncertainties in the Financial Statements – Proposed illustrative examples.
BDO supports the IASB providing illustrative examples to IFRS Accounting Standards with the goal being to improve how climate risks and other uncertainties are reflected in the recognition, measurement and disclosure of items in the financial statements. However, BDO has expressed certain concerns which include the following:
  • BDO believes that the illustrative examples are insufficient to fully address the perceived gaps in applying the requirements of IFRS Accounting Standards. BDO believes that there is a need for targeted amendments to the requirements of IFRS Accounting Standards.
  • BDO believes that there is a greater need for collaboration between the IASB and the ISSB. BDO strongly advocates for consistency and improved disclosures on sustainability-related risks and opportunities.
  • Seven out of the eight illustrative examples, focus on climate related matters, which risks skewing the perceived focus to be predominantly on a single topic
BDO recommends that the IASB reconsider narrow, targeted standard setting to update the requirements of IFRS Accounting Standards including collaboration with the ISSB to ensure connectivity between financial reporting and sustainability reporting.
The comment letter may be accessed here.