Accounting Advisory (IFRS) in Assurance
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The annual letter to CEOs from Larry Fink, Chairman and CEO of BlackRock, acts as a barometer in the responsible capitalism debate. Over the years, these letters provide progressive insight into investor thinking and can almost be seen as a chart of progress towards a more inclusive view of capitalism and purpose-led business.
Since its introduction IFRS 9 has caused considerable interest, especially with respect to the potential volatility that it may cause. How a firm’s ECL may change under different economic scenarios is important in understanding whether its estimates are “unbiased” (including whether an appropriate level of both upside and downside credit risk has been incorporated) and in understanding potential earnings (and capital) outcomes in different economic environments.
EU Benchmark Regulation (“EU BMR”): Kicking the can down the road? The implications of the extension of the regulation
The EU Benchmark Regulation (“EU BMR”) became effective on 1 January 2018 and seeks to increase the robustness and reliability of financial benchmarks and protect them from the type of manipulation that occurred during the financial crisis. Whilst the regulation was effective from 1 January 2018, the text includes transitional arrangements for existing EU and third country benchmark administrators, allowing these administrators to apply for authorisation any time before 1 January 2020.
The outlook for our planet is concerning. In October, the Intergovernmental Panel on Climate Change published a report showing that many ecosystems have already changed due to global warming. Climate change will have a marked impact on human health, food security, water supply, human security, and economic growth. The scientific consensus is that time is running out.