Welcome to the monthly capital markets update, a briefing from our capital markets practice area rounding up the month’s regulatory developments within the equity and debt capital markets and looking ahead to future developments.
Malta Update
There were no updates from a Maltese regulatory perspective for the month of October 2024.
European Union Update
UPDATE NUMBER 10/2024/01
On 8 October, 2024, ESMA released a Public Statement on the accounting for carbon allowances in financial statements, addressing various approaches issuers use under IFRS standards. With climate-related matters becoming more significant, ESMA emphasizes the need for transparent disclosures to aid decision-making, especially regarding carbon pricing programs like the EU Emissions Trading System.
The statement focuses on compliance carbon pricing programs and covers key areas:
- developing accounting policies for carbon pricing under IFRS;
- current practices, like the “Inventories” and “Intangible Assets” approaches;
- relevant IFRS standards for carbon allowances, and
- recommended disclosures for financial statements.
Issuers are reminded that in line with applicable requirements in IFRS Accounting Standards, accounting for carbon allowances in the financial statements should be consistent and coherent with the disclosures provided throughout the annual financial report, including the sustainability statement prepared under the European Sustainability Reporting Standards.
Issuers and auditors are expected to incorporate these recommendations into their 2024 annual financial reports.
