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BRIAN MANG’OLI
The implementation of the IFRS standards is expected to contribute to the promotion of consistency and comparability of sustainability-related disclosures across organizations. This will enhance the effectiveness of data analysis and benchmarking, enabling stakeholders to make informed decisions concerning investment opportunities and risk management strategies.
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Kenya’s dynamic business landscape is currently facing a crucial moment in its financial sector as the country adopts new international financial reporting standards. The Institute of Certified Public Accountants of Kenya (ICPAK) has been organizing capacity-building events to assess the country’s potential in adopting the new standards developed by the International Sustainability Standards Board.
Sustainability is more than just a compliance requirement, it is a strategic necessity that promotes resilience, creativity, and value creation. IFRS 1 deals with disclosures on sustainability-related risks, while IFRS 2 requires firms to make disclosures on climate change.
The implementation of improved disclosure standards on climate-related risks and opportunities is crucial in boosting trust and confidence in a farm’s sustainability reporting.
Both reporting standards are critical for unlocking capital flows for farms, particularly in Africa, which is currently experiencing the detrimental effects of climate-related risks