What is a non-financial statement EU?
The EU Non-Financial Reporting Directive is enshrined in the Treaty on the Functioning of the EU, which allows Member States to exceed the requirements set by the EU in matters of environmental protection. The number of regulatory initiatives requiring non-financial disclosure is growing rapidly.
What is the EU NFRD?
The Non-Financial Reporting Directive (the NFRD – Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups), amending the Accounting Directive, was adopted …
Is ESG mandatory in Europe?
Europe to get mandatory digital ESG disclosure using Inline XBRL. Work remains to be done in establishing audit standards and approaches for ESG data, and the Directive initially proposes a ‘limited’ requirement, which should nonetheless help build accuracy of and trust in reported information. …
What is the NFDR?
Directive 2014/95/EUDirective 2014/95/EU – also called the Non-Financial Reporting Directive (NFRD) – lays down the rules on disclosure of non-financial and diversity information by certain large companies. This directive amends the Accounting Directive 2013/34/EU.
What does non-financial reporting include?
Non-financial reporting, put simply, is a form of transparency reporting where businesses formally disclose certain information not related to their finances, including information on human rights.
What is non-financial information example?
Financial data examples include advertising costs, sales revenue, employee compensation and the value of assets. Examples of nonfinancial information include environmental impact, your relationship with your vendors, diversity in the workplace and social responsibility.
What are non-financial disclosures?
What is non-financial regulatory reporting?
NFRR is a broad term that generally refers to any required regulatory reports produced outside of the finance function. Within the banking sector, these reports are often related to risk exposure and management, compliance, and reporting of transactions and trading positions.
Is sustainability reporting mandatory in EU?
The EU Corporate Sustainability Reporting Directive (CSRD) will amend the existing Non-Financial Reporting Directive (NFRD). Expanding the scope of sustainability matters, the CSRD requires all large and listed EU companies to introduce mandatory sustainability reporting standards.
Who does NFRD apply?
Some asset managers will be covered by NFRD, creating an interesting intersection with the SFDR: while taxonomy reporting under the SFDR is only mandatory for funds promoting environmental objectives (so-called “environmental Article 8” or “environmental Article 9 funds”), the NFRD requirements apply simply on account …
What are non financial disclosures?
What are examples of non-financial information?