Investors need to be able to connect the information in the financial statements – e.g. about the assumptions used in calculating the recoverable amount – with the information a company provides outside the financial statements (e.g. in the front part of the annual report).
To tell a connected story, companies need to provide a coherent, connected and integrated picture across their financial statements, management discussion and analysis (MD&A) and sustainability-related disclosures, regardless of the frameworks or standards used outside the financial statements.
New standards for sustainability reporting – including European Sustainability Reporting Standards and IFRS® Sustainability Disclosure Standards – mean that the focus on this topic is increasing rapidly.