Jeju Group Holds 2nd International Conference... "Will Be a Key Agenda in Digital and ESG Accounting Fields"

Joo In-ki, President of the International Federation of Accountants (IFAC) and Professor at Yonsei University. / Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Ji-hwan Park] The Jeju Group, an international accounting-related consultative body composed of certified public accountant societies from countries including Korea, Japan, and Singapore, announced on the 3rd that it held its 2nd international conference on the 2nd. The seminar was conducted under the theme of "The IFRS Foundation's consultation paper on sustainability reports and practical work in various countries."

On the day, Jeju Group Chairman Ju In-gi, in his welcoming remarks, diagnosed that the COVID-19 pandemic demands significant changes from certified public accountants in two respects. One is the promotion of digitalization of work, and the other is that ESG (Environmental, Social, and Governance) evaluation and reporting are emerging as important agendas for accountants.

Chairman Ju explained, "ESG evaluation is reflected through sustainability reports, and in the current situation where the ongoing COVID-19 pandemic and interest in climate change are increasing, investors are demanding the preparation of sustainability reports more strongly, which is a recent international trend." He added, "Sustainability reports are also addressed as a major agenda at the November International Federation of Accountants (IFAC) Council meeting, reflecting the high level of international interest in this field."

Sustainability reports inherently contain a significant portion of non-financial information. Chairman Ju judged that measuring, reporting, and auditing this information is by no means an easy task from the perspective of accounting professionals. Accountants have traditionally been accustomed to preparing financial information, and the accountability issues arising when dealing with non-financial information have not yet been clearly resolved.

Chairman Ju emphasized, "The recent survey by the IFRS Foundation on the proposal to establish a dedicated Sustainability Standards Board within the foundation, separate from the International Accounting Standards Board (IASB), to professionally handle sustainability reporting standards, can be seen as highly meaningful."

During the seminar, White Lee, Secretary-General of the IFRS Foundation, also presented on the consultation paper. Secretary-General Lee explained, "Currently, at least five organizations, including the IIRC (International Integrated Reporting Council), Sustainability Accounting Standards Board (SASB), Global Reporting Initiative (GRI), Climate Disclosure Standards Board (CDSB), and Task Force on Climate-related Financial Disclosures (TCFD), are creating reporting standards for ESG." He added, "Companies in various countries produce and publish multiple types of reports based on their own choices." He further stated, "There is a global demand to reduce inefficiencies caused by multiple organizations creating overlapping standards and to establish a unified, internationally recognized standard-setting body."

Secretary-General Lee emphasized, "The purpose of distributing this consultation paper is to gather opinions from certified public accountant societies worldwide and international organizations regarding the feasibility and success factors of establishing a unified standard-setting body under the IFRS Foundation."

The accounting experts from various countries attending the seminar generally expressed support for establishing the Sustainability Standards Board within the IFRS Foundation to create independent and authoritative standards. However, they pointed out as important challenges how to incorporate and utilize existing organizations within the standards board and how to secure a stable budget.

Meanwhile, the seminar was sponsored by the International Federation of Accountants (IFAC) and was held as a video conference. Over 200 certified public accountants from Asia and the Pacific region participated for an hour and a half, engaging in active exchanges of opinions.