The accounting firm for which you work (this is just pretend, most students are not currently working for an accounting firm, use your imagination to make up a name and letterhead for your accounting firm) has decided to submit feedback on the IFRS consultation paper. Consequently, you have been approached by your firm to undertake rigorous research to explain the issues raised in the IFRS foundation’s (2020) consultation paper particularly within the scope of Part 5 and advise how your firm should respond to Question 7 of the consultation paper.

Therefore, in your own words write a memo to your colleagues at the accounting firm explaining the issues raised in the IFRS Foundation’s “Sustainability-related project” and provided the requested advice. Your memo should:

(a) Provide a brief description of key issues raised in the IFRS Foundation’s sustainability-related reporting project including what climate change is.

(b) Critically evaluate the role of financial accountants in addressing the climate-change agenda.

Note: Your critical analysis should include relative merits (benefits) and demerits (costs) of the financial accounting in addressing the climate-change agenda. Therefore, you need provide both for and against evidence-based arguments.

(c) Critically evaluate the scope of ISSB being initially be limited to climate-related financial disclosures only before potentially broadening its remit into other areas of sustainability reporting?

This will include merits and relative demerits of keeping the focus of ISSB limited to climate related financial disclosures. Therefore, you need provide both for and against evidence-based arguments.

Note: Your critical analysis should include relative merits (benefits) and demerits (costs) of keeping the focus of ISSB initially limited to climate-related financial disclosures. Therefore, you need to provide both for and against evidence-based arguments.

(d) Advice on whether or not your accounting firm should support IFRS’s initiative to focus initially on the development of climate-related financial disclosures before potentially broadening its remit into other areas of sustainability reporting.

Note: This advice should be supported with a well-justified logical argument based on the critical analysis of the IFRS foundation’s sustainability reporting project.

Please note that this consultation paper includes a number of issues, however, the focus of this assignment is within “Part 5 Scope – if SSB were to be established by the IFRS Foundation” only.