Expectations for sustainability reporting from users, preparers, and the accounting profession

Hamilton Elkins, Gary Entwistle () and Regan N. Schmidt
Additional contact information
Hamilton Elkins: University of Saskatchewan
Gary Entwistle: University of Saskatchewan
Regan N. Schmidt: University of Saskatchewan

International Journal of Disclosure and Governance, 2024, vol. 21, issue 1, No 9, 143-164

Abstract: Abstract Sustainability information has become an important component of financial statement users’ information needs. Over time, a mosaic of sustainability reporting standard setters and standards have emerged with users, regulators, and government creating pressure for firms to disclose ESG (environmental, social, and governance) information. Given the fragmented disclosure landscape, in 2020 the IFRS Foundation released a consultation paper proposing they create a sustainability standards board and develop a single set of standards. This study examines the expectations users, preparers, and the accounting profession have for sustainability reporting through their comment letters on topics such as the need for a single set of sustainability standards, the standards’ initial subject matter, the choice of single or double materiality, and the desire for assurance on sustainability information. Our analysis documents a common desire for a single standard setter and standards. However, there is a lack of consensus and significant differences in opinions pertaining to the initial subject matter of the standards and the approach to materiality. The analysis also suggests an inverse expectations gap whereby the accounting profession is misunderstanding the level of assurance demanded by users and preparers. Subsequent Foundation actions compared to our analysis portend challenges in achieving uniformity in sustainability reporting.

Keywords: Sustainability; ESG; Assurance; Materiality; Disclosure; Comment letters (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/s41310-023-00206-3 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:ijodag:v:21:y:2024:i:1:d:10.1057_s41310-023-00206-3

Ordering information: This journal article can be ordered from
https://www.palgrave.com/gp/journal/41310

DOI: 10.1057/s41310-023-00206-3

Access Statistics for this article

International Journal of Disclosure and Governance is currently edited by Michael Alles

More articles in International Journal of Disclosure and Governance from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().