Reference no: EM133014241

Question - Comprehensive Corporate Reporting - On September 11, 2020, five organizations-CDP, CDSB, GRI, IIRC and SASB-announced a shared vision for a comprehensive corporate reporting systemand their commitment to collaborate to achieve it. The paper, titled Statement of Intent to Work Together Towards Comprehensive Corporate Reporting, provides:

A shared vision for how existing sustainability standards and frameworks can complement generally accepted financial accounting principles (Financial GAAP) and serve as a basis for a coherent and comprehensive corporate reporting system; and

A joint commitment to drive toward this goal through an ongoing program of deeper collaboration between the institutions; and

Joint market guidance on how these frameworks and standards can be applied in a complementary and additive way.

This paper sets out a vision of the elements necessary for a comprehensive corporate reporting system that includes both financial accounting and sustainability disclosure, connected via integrated reporting.

Importantly, IFAC calls for a new Sustainability Standards Board alongside the IASB which was declared on September 11, 2020.

The time for a global solution is now-to answer the demand from investors, policymakers and other stakeholders for a reporting system that delivers consistent, comparable, reliable, and assurable information relevant to enterprise value creation, sustainable development and evolving expectations. A fragmented approach perpetuates inefficiency, increased cost, and a lack of trust. Important work is underway (e.g., WEF/IBC metrics, IOSCO's task force, EFRAG's preparatory work, and alignment between the leading reporting initiatives), and these efforts should continue and ultimately contribute to the emerging global system.

Global approach: A new standard setting board is necessary to build and coordinate a coherent global system of interconnected corporate reporting.

Framework: Financial and non-financial information should be connected through a conceptual framework. Integrated reporting principles and the work of TCFD should serve as a starting point.

Required -

1. Briefly discuss what comprehensive corporate reporting is?

2. Discuss, from investor's point of view, whether comprehensive corporate reporting will improve accounting quality.

3. Discuss the potential benefits of the new international Sustainability standards board over IFRSs.