IFRS Foundation Completes Consolidation with Value Reporting Foundation

The IFRS Foundation (IFRSF) announced, on August 1, 2022, that it has completed the consolidation of the Value Reporting Foundation (VRF) into the IFRS Foundation. It follows the commitment made at COP26 to consolidate staff and resources of leading global sustainability disclosure initiatives to support the IFRS Foundation’s new International Sustainability Standards Board’s (ISSB) work to develop a comprehensive global baseline of sustainability disclosures for the capital markets.

 

In a press release, the IFRSF said that the VRF’s SASB Standards will be a key starting point for the development of the IFRS Sustainability Disclosure Standards, while the Integrated Reporting Framework provides connectivity between financial statements and sustainability-related financial disclosures.

According to the IFRS Foundation, “the consolidation delivers on market demand – including from companies, investors and regulators – for simplification of the sustainability disclosure landscape, and follows the consolidation of the Climate Disclosure Standards Board (CDSB) into the IFRS Foundation earlier this year.”

The ISSB, which now governs the SASB Standards, is embedding the industry-based approach of the SASB Standards into its standard-setting process, as well as addressing the international applicability of the SASB Standards as a priority. The ISSB encourages companies and investors to continue to provide full support for, and use of, the SASB Standards.

The IFRSF says that its International Accounting Standards Board (IASB) and the ISSB now assume joint responsibility for the Integrated Reporting Framework and are working together to agree on how to build on and integrate the Integrated Reporting Framework into their standard-setting projects and requirements. “The ISSB and IASB actively encourage continued adoption of the Integrated Reporting Framework to drive high-quality corporate reporting.”

The IFRSF is “focused on continued market participation in the development of IFRS Sustainability Disclosure Standards, as well as on connectivity in the reporting required by the IASB and the ISSB. To foster this market engagement and to drive continued dialogue, Value Reporting Foundation advisory bodies, education, membership and licensing programs and networks continue under the IFRS Foundation.”

As previously announced, a number of VRF Board Directors will transition into advisor roles to observe IFRS Foundation Trustee meetings and to participate in a newly formed IFRS Foundation Transitional Advisory Group.

Erkki Liikanen, Chair of the IFRS Foundation Trustees, said that he is “delighted that the IFRS Foundation has finalized consolidation with the VRF. This consolidation follows the successful consolidation of the Climate Disclosure Standards Board in February. These consolidations help us to respond to the demand from stakeholders and deliver on the commitment we made at COP26 – to harmonize the sustainability disclosure landscape and build on the work of existing reporting initiatives.”

For more, please see IFRS - IFRS Foundation completes consolidation with Value Reporting Foundation.