Accountancy Europe is asking for thoughts and opinions on how to achieve an interconnected standard setting for financial and non-financial reporting before the end of March 2020.
Global risks and opportunities mean that financial information alone cannot give a full picture of a company’s performance. Climate change, environmental degradation, social unrest and internally generated intangibles are addressed by non-financial information (NFI) reporting. However, the hundreds of NFI reporting initiatives available are leading to confusion and the potential for greenwashing. For an effective response to these global issues and stakeholder demands, Accountancy Europe believes that NFI reporting needs to be harmonised and interconnected with financial reporting.
In the paper, they introduce nine criteria and apply them to four approaches to interconnected standard setting for corporate reporting to coordinate, rationalise and consolidate the many non-financial reporting initiatives that exist and create a core set of global metrics.
They also call for a global solution.
The proposal can be found here.