Global Rulemaker to Let Companies Determine Net Zero Disclosures

A global standard-setter decided Thursday to let companies decide on their own when they should report the cost of their commitments to achieve net zero carbon emissions, rather than introducing specific requirements.

All 14 International Accounting Standards Board members voted against adding net zero transition rules to IAS 37 Provisions, Contingent Liabilities and Contingent Assets, an international accounting standard introduced in 1999. The board was discussing changes to the accounting definition of liabilities and when liabilities should be recorded.

• Companies don’t have to list a liability simply because they made a net zero commitment, promising to cut greenhouse gas emissions ...