Accounting and Capital Markets Round-Up
January 2025
Hi,
Here are your articles on accounting and capital markets updates for the month.
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IASB proposes targeted improvements to requirements for provisions
On 12 November 2024, the International Accounting Standards Board (IASB) published the Exposure Draft on IAS 37 'Provisions, Contingent Liabilities and Contingent Assets', proposing targeted improvements which could lead to earlier recognition of some provisions including levies. The key proposed amendments include:
- Revising the present obligation recognition criteria by replacing the definition of “obligating events” and replacing the requirement that an obligation exists independently of future actions with specific criteria. The proposals also include removing IC Interpretation 21 'Levies' and enhancing the guidance on implementing IAS 37, including adding new illustrative examples.
- Mandating the use of a risk-free rate, without adjustments for non-performance risk, to measure long-term provisions
- Clarifying that costs to be included in measurement of provisions should include both incremental costs and an allocation of other costs that relate directly to settling the obligation
We encourage you to share your comments on the questions asked in this ED. Comments should be submitted to the IASB by 12 March 2025 or shared with the Malaysian Accounting Standards Board by 12 February 2025.
Amendments to Bursa Malaysia’s Listing Requirements on sustainability reporting
On 23 December 2024, Bursa Malaysia Securities Berhad (“Bursa”) made amendments to the Main Market Listing Requirements and ACE Market Listing Requirements to enhance sustainability reporting requirements, aligning with the National Sustainability Reporting Framework.
The amendments require listed issuers to prepare sustainability statements according to IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB). Additionally, issuers must disclose metrics and targets for past 3 years (with a summary in a prescribed format) and indicate whether the sustainability statement has been subjected to internal review or independent assurance.
PwC’s Global Sustainability Reporting Guide is now updated
PwC’s Global Sustainability reporting guide (SRG) is a compendium of the requirements under the primary global sustainability reporting frameworks of CSRD, ISSB and SEC - with insights, application guidance and illustrative examples from our global sustainability reporting specialists.
The SRG now includes new topical chapters and substantial new content in our existing chapters to reflect recent developments as well as additional insights and FAQs. New chapters are also added to address environmental, social, and governance topics, as well as the EU Taxonomy Regulation for non-financial entities.
2024 Global IPO Watch report
IPO markets continued to normalise in the Americas and EMEA (driven by the US and European markets), with both regions reporting higher IPO proceeds vs last year, up 57% and over 30% respectively. IPO activity in the APAC region declined (down 43%), driven by continued slowdown in China, reflecting a challenging macroeconomic backdrop. India remained a bright spot in the APAC region with IPO proceeds up 152% compared to 2023.
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