Legal & Regulatory News

UK TAC call for evidence on the IFRS disclosure standards.

On 19 July 2023, the UK Sustainability Technical Advisory Committee (TAC) issued a call for evidence in relation to the endorsement by the UK Government of the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards.

The two disclosure standards are:-

• IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information; and
• IFRS S2: Climate-related Disclosures.

The TAC has been tasked with understanding the technical aspects of the disclosure standards and how an endorsement would impact stakeholders in the UK. The call for evidence is designed to assist with this process by identifying views on whether the disclosures required by the IFRS Sustainability Disclosure Standards:-

• will result in disclosures that are understandable, relevant, reliable and comparable for investors;
• are technically feasible to prepare;
• can be prepared on a timely basis and at the same time as general purpose financial reports; and
• are expected to generate benefits that are proportionate to the costs that are likely to be incurred.

Respondents to the call for evidence are encouraged to consider the challenges and benefits they envisage resulting from the adoption of the standards in the UK in order to enable the identification and consideration of amendments which could be make the application more effective.

The Financial Reporting Council (FRC) have included suggested topics to consider and a template response (in the Appendix). All non-confidential responses will be published on the FRC website.

The call for evidence will close on 11 October 2023.

Click here to view the call for evidence.

Click here to read the press release.