Support for Eumedion's call to standardise non-financial reporting

News · 30-03-2020

There is broad support from various stakeholders for Eumedion's call to standardise the non-financial information published by listed companies. This is one of the main conclusions of the roundtable on the future of non-financial reporting that Eumedion organised on 9 March in collaboration with Accountancy Europe. Both organisations published discussion documents on this subject in 2019. Investors, enforcers, policy makers, standard setters, auditors and academics participated in the round table discussion. The discussion showed that stakeholders still disagree about which entity should take care of the desired standardisation. Some participants supported the idea of Eumedion and Accountancy Europe to designate the IFRS Foundation for this task. Others believed that such a process will take (too) long and supported a more pragmatic solution in the meantime. In that "interim period", listed companies should be called upon to adopt the existing, most widely used non-financial reporting frameworks of the SASB, GRI, TCFD and IIRC. The European Commission can play an important stimulating role in achieving a global reporting framework. What the ultimately harmonised non-financial reporting framework will look like will partly depend on the choice of the primary target audience for such reporting and the associated materiality level. Stakeholders disagreed whether listed companies should only include in their statutory reports non-financial information that is "financial material" or whether a "multi-stakeholder lens" should be used. In that case, companies will also have to report on matters that are important from a social point of view, without the condition that this information should be financial material for the company. Eumedion and Accountancy Europe will take the findings and conclusions into account when determining their final position on which organisation(s) should ultimately take care of the worldwide standardisation of non-financial reporting.

Relevant documents

Findings and conclusions roundtable on future of non-financial reporting

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Accountancy Europe Cogito Paper on future of non-financial reporting

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Eumedion Green Paper on future of non-financial reporting

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