Principled-Based Carbon Accounting
pg. 15: a Joint Project of the International Accounting Standards Board (IASB) with the business-NGO Climate Disclosure Standards Board (CDSB) to develop a principles-based international financial [bold in the original] reporting standard for corporate climate disclosure suitable for ultimate adoption by regulators
Readers' Guide Comment on “a principles-based international financial reporting standard”
International financial standards are either explicit accounting rules or broad policy principles about a particular accounting matter. Explicit rules define what is to be disclosed, how it is to be measured, and when it is to be reported. Principle-based standards express goals to be accomplished (e.g. what is “fair and equitable”) and leave the particular implementation practices to the reporting firm or national standard setting body.
With this recommendation WEF is favoring the vaguer standards approach. It is worth noting that developing countries are underrepresented in both the International Accounting Standards Board (IASB) and the Climate Disclosure Standards Board, and that the IASB has limited participation by international civil society organizations.
The Readers' Guide welcomes comments with alternative examples or counter examples, supplemental assessments of the extracted GRI text or commentary – critical or otherwise – of the above interpretation of GRI’s perspective.