SASB Adds Second Comment Period for Financials Standards
by Terri Eyden on
By Jason Bramwell
The Sustainability Accounting Standards Board (SASB) on November 4 added a second public comment period for sustainability accounting standards the board is proposing for the financials sector, which encompasses seven industries.
Individuals and organizations can comment on the draft provisional standards during a forty-five-day comment period that starts November 15 and concludes December 27.
"Given the high volume of informal and formal feedback we've received on this particular set of standards, we believe our stakeholders would appreciate another opportunity to comment on the standards before they are finalized," Jean Rogers, PhD, founder and executive director of the SASB, said in a written statement.
How to Comment
Any member of the public who would like to comment on the proposed provisional sustainability accounting standards for the financials sector should visit the SASB website for commenting guidelines starting on November 15.
This past July, the SASB unveiled its first set of provisional sustainability accounting standards that focus on the health care sector, and the San Francisco-based 501(c)3 not-for-profit organization is planning on developing standards for eighty-plus industries in ten sectors over the next two years. The SASB is accredited to set standards by the American National Standards Institute (ANSI).
The SASB standards will be used by public companies for disclosing material environmental, social, and governance (ESG) sustainability issues that benefit investors and the public. Under federal Regulation S-K, corporations are required to report all material issues in mandatory filings to the US Securities and Exchange Commission (SEC), like Form 10-K.
The SASB opens each set of standards to public comment, and in response to stakeholder feedback, the board gradually lengthened the public comment period from thirty days to forty-five days to ninety days.
The working groups for the financials sector, which convened this past February, resulted in 302 survey responses from members representing publicly traded companies with more than $1.3 trillion in market capitalization and investment firms with more than $5 trillion in assets under management.
The proposed provisional sustainability accounting standards will target the following seven industries in the financials sector:
- Commercial banks
- Investment banking and brokerage
- Asset management and custody activities
- Consumer finance
- Mortgage finance
- Security and commodity exchanges
The proposed standards will address several issues within each of the seven industries that fall under ESG, including the following:
- Integrating ESG factors in investment management and advisory (asset management and custody activities industry).
- Promoting transparent, efficient capital markets and preventing information asymmetry (security and commodities exchanges industry).
- Managing conflicts of interest (investment banking and brokerage industry).
The initial public comment period for industries in this sector was held for forty-five days beginning in May. But because the changes undertaken since the initial comment period have been significant, the SASB Standards Council – an independent oversight body comprised of experts in standards development, securities law, and accounting – advised the SASB to re-expose the standards for a second comment period.
"SASB standards are designed to be cost-effective for issuers and decision-useful for users," Jerome Lavigne-Delville, SASB director of standards development, said in a written statement. "By holding a second comment period for standards for industries in the financials sector – a sector with a particularly complex set of sustainability issues – SASB hopes to collect the final input necessary to finalize standards that accomplish these objectives."
According to the SASB, following the public comment period, the provisional set of standards for industries in the financials sector will be issued on February 25, 2014.
You may like these other stories...
The Financial Accounting Standards Board (FASB) had hoped to issue a final standard on revenue recognition during the first quarter of this year. However, the standard-setting organization confirmed today that the timetable...
IRS revokes group’s tax exemption over anti-Clinton statementsGregory Korte of the USA Today reported on Monday that the IRS has revoked the tax-exempt status of a conservative-aligned charity, the Patrick Henry Center...
CFOs are having a tough time filling vacancies quickly in their accounting and finance departments, according to a new survey from staffing services firm Robert Half.Open staff-level positions in accounting or finance take...
Upcoming CPE Webinars
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.
This material focuses on the principles of accounting for non-profit organizations’ expenses. It will include discussions of functional expense categories, accounting for functional expenses and allocations of joint costs.