Beyond the GAAP no.183 - December 2023

The IASB work plan alone suggests that this new year will be a busy one on the accounting front. But the biggest new development in 2024 will be initial application of the European Sustainability Reporting Standards (ESRS), for the first companies falling within the scope of the Corporate Sustainability Reporting Directive (CSRD) – i.e. large undertakings that are public-interest entities and that have more than 500 employees, as per the Accounting Directive.

The year just gone also saw the publication of two important pieces of legislation in the Official Journal of the European Union (OJEU). The first was the Delegated Directive amending the company size criteria in the Accounting Directive (referenced in the CSRD) to increase the size thresholds for net turnover and balance sheet total by 25%. The second was the Delegated Regulation on the 12 sector-agnostic ESRS adopted in late July by the European Commission.