The International Accounting Standards Board (IASB) faces the challenge of navigating complex joint projects with the International Sustainability Standards Board (ISSB) as it embarks on a public consultation on its future workplan.

Additionally, the IASB must also manage resource constraints and address ongoing concerns about post-implementation reviews (PIRs).

The concerns emerged during last month’s board meeting as the IASB’s technical director, Nili Shah, outlined the board’s roadmap for the process.

She said: “The fourth agenda consultation would cover the period 2027 to 2031. However, we would consult again if the ISSB starts its next agenda consultation during this period. And this would allow us to align the time period for each board’s agenda consultation going forward.”

Based on a presentation delivered to the board, the request for information (RFI) is likely to focus on three key areas. These are the IASB’s strategic focus, the criteria for selecting new projects, and priority financial statement matters.

In relation to joint working with the ISSB sister board, the IASB would focus on the emerging theme of so-called connectivity between financial reporting and sustainability reporting.

The second theme would be formal joint projects with the ISSB. However, the proposal for joint working on sustainability topics received a stark reality check from IASB member Bruce Mackenzie.

He said: “Joint projects have become one of those buzzwords […] Well, not everybody in the world uses the standards our sister board does, which means we need to be very realistic that there’ll be jurisdictions who will not prioritise that [workstream].”

He also stressed the significant resources required for joint projects and the need for both boards to align their priorities.

Resource constraints and ambitious agenda

Additionally, the IASB must also continue to deliver on its commitment to deliver PIRs of recently introduced or updated standards.

The board’s vice-chair, Linda Mezon-Hutter, noted that the board risks stoking frustration around PIRs if it fails to act decisively on feedback.

“We are getting some feedback quite consistently that people are very sensitive about the amount of work they put in […] giving us feedback on PIRs, and then we consistently hold the line that says it’s a very high threshold and we don’t do much.”

The board is expected to issue a request for information inviting comments from interested parties during the final quarter of this year.

The latest digital edition of IPE’s magazine is now available

Topics