IFRS Accounting for Climate Change (1 day)

Introduction

Climate change poses a significant risk to the world and its economy. Most industries have been, or are likely to be, affected and need to manage its impact. Investors are increasingly emphasising the importance of ESG (Environmental, Social and Governance) factors, particularly climate-related risk, when making investment decisions. Furthermore, regulators and governmental bodies are ever more focusing on the impact of climate change on financial reporting.

“IFRS Standards do not refer explicitly to climate‑related matters. However, companies must consider climate‑related matters in applying IFRS Standards when the effect of those matters is material in the context of the financial statements taken as a whole.” - IFRS Foundation

This course will explain how companies should consider climate-related matters in applying International Financial Reporting Standards (IFRS) and help them decide how to reflect these matters in their financial reports. It provides an introduction to a topic that is rapidly gaining importance, and will significantly impact financial statements in both the short and longer terms. We will also look into the future for accountants, financial reporting and environmental and social disclosures.

Learning Objectives

• Explain how existing IFRS requirements already address climate-related matters
• Explain key considerations for integrating climate-related matters into financial statements applying IFRSs
• Apply the concept of materiality in considering what climate-related matters are important to financial statement users
• Identify potential financial implications arising from climate-related risks
• Identify when additional disclosures are required in the financial statements to enable investors to understand the impact of climate-related matters
• Consider potential implications for the audit of climate related disclosures.

Who Should Attend

• Finance department staff involved in the preparation financial statements
• Regulators who analyse financial statements to ensure compliance
• Analysts who review financial statements
• Auditors involved in reviewing financial statements

Topics

• Application of the concept of materiality in considering what climate-related matters are important to financial statement users
• Areas of financial reporting likely to be affected by climate-related matters, including:
  • Key estimates and judgements
  • Asset impairment and related issues (e.g., revisions of useful lives and other estimates)
  • Fair value measurements of assets and liabilities
  • Credit risk and estimated credit losses
  • Environmental and other provisions and contingent liabilities
• Disclosures in the financial statements
• The link between reporting climate-related matters in the financial statements and other climate-related reporting in the annual report
• Specific issues that may arise regarding the audit and climate related disclosures

Teaching Method

• Live group face to face instruction by a specialist instructor
• Use of case studies and real-world examples to illustrate practical application
• Interactive participation is encouraged, with all attendees being required to be present on camera for the duration of the sessions
• All participants receive comprehensive electronic course notes, including presentation slides and handouts

Instructors

Venue

CPE/CPD Accreditation

IASeminars is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

 

Field of study: Accounting

Prerequisites

Basic understanding of accounting under IFRSs. No advance preparation is required for this course.