Inconsistent Climate Reporting Draws Global Accounting Review

The International Accounting Standards Board said Monday that it would clarify when companies should report climate risks in financial statements after complaints that companies weren’t reporting them consistently.

The board emphasized that it wouldn’t launch a major standard-setting project to set specific financial accounting rules for climate. It acknowledged, however, a need for better guidance for companies to understand when climate risks are significant enough to be of material importance to financial results.

• Chair Andreas Barckow said that detailed reporting rules for climate would be set by the IASB’s sister body, the International Sustainability Standards Board, rather than in financial ...