Status as of 24 September 2026<\/strong><\/p>\n\n\n\n Integrated reporting explains how a company\u2019s financial performance connects with its strategy, sustainability risks, effects on people and the environment, and management decisions. This requires a distinction between three systems. IFRS Accounting Standards<\/strong> govern financial statements. ESRS<\/strong> specify sustainability disclosures in the EU. IFRS S1 and IFRS S2<\/strong>, issued by the International Sustainability Standards Board (ISSB), set international requirements for disclosing sustainability-related risks and opportunities relevant to users of general purpose financial reports. The systems connect, but none replaces the others. ifrs.org<\/a><\/p>\n\n\n\n The international Integrated Reporting Framework<\/a>, first published in 2013 and revised in 2021, proposed that companies explain how their strategy, resources, governance and performance create value over time. It provides an approach to reporting<\/strong>, not a separate mandatory EU standard. www.ifrs.org<\/a><\/p>\n\n\n\n The European Union developed its legal requirements in stages. The 2014 Non-Financial Reporting Directive<\/a>, or NFRD, introduced disclosures for certain large companies. The Corporate Sustainability Reporting Directive (CSRD)<\/a> expanded and clarified that framework. The first set of European Sustainability Reporting Standards (ESRS)<\/a>, adopted in 2023, specifies its reporting content. eur-lex.europa.eu<\/a><\/p>\n\n\n\n The first ESRS set<\/a> contains 12 standards<\/strong>. ESRS 1<\/a> sets general requirements and ESRS 2<\/a> covers general disclosures. Five standards, E1\u2013E5<\/strong>, address environmental topics; four, S1\u2013S4<\/strong>, address people; and G1<\/strong> covers business conduct. The full legal text is available in Regulation (EU) 2023\/2772<\/a>. Readers can explore individual standards and versions through the EFRAG ESRS Knowledge Hub<\/a>. For example, ESRS E1 Climate Change<\/a> covers climate impacts, company actions, and related financial risks and opportunities. www.efrag.org<\/a><\/p>\n\n\n\n ESRS apply double materiality<\/strong>. A company considers how sustainability matters may affect its financial prospects and how its activities affect people and the environment. Both perspectives inform what it reports. EFRAG\u2019s guidance on materiality assessment and the value chain<\/a> helps preparers apply this principle to their data and processes. ifrs.org<\/a><\/p>\n\n\n\n In this context, IFRS<\/strong> refers to two distinct groups of standards developed under the IFRS Foundation.<\/p>\n\n\n\n The first group is IFRS Accounting Standards<\/a>.<\/strong> They govern financial statements, including the recognition, measurement and disclosure of assets, liabilities, income and expenses. ESRS do not replace these rules. The connection arises when one development has both financial and sustainability implications. A climate risk, for example, may appear in ESRS disclosures and also affect estimates used in financial statements. A company should explain how the assumptions, time horizons and amounts relate while respecting each system\u2019s requirements. EFRAG\u2019s discussion paper on the connectivity of financial and sustainability reporting<\/a> examines this issue and is accompanied by examples from company reports. ifrs.org<\/a><\/p>\n\n\n\n The second group is IFRS Sustainability Disclosure Standards<\/a>.<\/strong> IFRS S1<\/a> sets general requirements for information about sustainability-related risks and opportunities that could affect a company\u2019s prospects. IFRS S2<\/a> addresses climate. These standards focus primarily on information useful to investors and other providers of resources. ESRS use the broader double materiality approach: alongside financial risks, they address the company\u2019s effects on people and the environment. ifrs.org<\/a><\/p>\n\n\n\n ESRS and IFRS S1\/S2 overlap substantially, particularly on climate. The joint EFRAG\u2013IFRS Foundation ESRS\u2013ISSB Standards Interoperability Guidance<\/strong><\/a> maps requirements including ESRS E1<\/a> and IFRS S2<\/a>. It helps preparers use common data efficiently and identify disclosures that each system additionally requires. The guidance explains interoperability; it does not declare the standards equivalent.<\/strong> Published in 2024, its mappings will need to be checked against the revised ESRS adopted in 2026. ifrs.org<\/a><\/p>\n\n\n\n The first companies applied the CSRD to financial year 2024. The EU has since changed its timetable and scope. Directive (EU) 2025\/794<\/a> delayed reporting for later groups of companies. Directive (EU) 2026\/470<\/a> narrowed mandatory CSRD reporting to companies with more than 1,000 employees and net annual turnover above \u20ac450 million<\/strong>. A company should assess its position under the amended provisions and the relevant national implementation. finance.ec.europa.eu<\/a><\/p>\n\n\n\n On 3 July 2026<\/strong>, the European Commission adopted revised ESRS<\/a>. Their text is available on the ESRS Knowledge Hub<\/a>, but as of 24 September they are not yet legally effective<\/strong>. EFRAG states that the scrutiny period must end and publication in the Official Journal must follow. Preparers assessing current requirements should use Regulation (EU) 2023\/2772<\/a>, taking amendments into account; the revised standards indicate the next phase. finance.ec.europa.eu<\/a><\/p>\n\n\n\n For companies outside mandatory CSRD reporting, the EU has also established a voluntary reporting standard<\/a>, published on 21 September 2026<\/strong>. It offers smaller companies a proportionate basis for providing information requested by large clients and financial institutions. It is distinct from the mandatory ESRS. eur-lex.europa.eu<\/a><\/p>\n\n\n\n ESRS simplification raises one research question: will fewer datapoints preserve the quality and comparability of reports? Interoperability with IFRS S1\/S2 raises another: which data can support both systems, and where do separate assessments remain necessary? The connection with financial statements raises a third: do companies explain the financial implications of sustainability matters, or publish two accounts that readers cannot reconcile?<\/p>\n\n\n\n These questions matter in Ukraine even where a company has no direct CSRD reporting obligation. EU partners, lenders and clients may request verifiable information. INTEREPO should therefore teach IFRS Accounting Standards, ESRS and IFRS S1\/S2<\/strong> together through real reports, while keeping their requirements distinct. Students should learn to trace data, assess materiality and explain the relationships between financial figures, impacts, risks and management decisions.<\/p>\n\n\n\n Integrated Reporting in the EU: History, Standards and the Relationship between ESRS and IFRS Status as of 24 September 2026…<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":62,"menu_order":10,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-257","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/projects.snau.edu.ua\/interepo\/wp-json\/wp\/v2\/pages\/257","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/projects.snau.edu.ua\/interepo\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/projects.snau.edu.ua\/interepo\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/projects.snau.edu.ua\/interepo\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/projects.snau.edu.ua\/interepo\/wp-json\/wp\/v2\/comments?post=257"}],"version-history":[{"count":3,"href":"https:\/\/projects.snau.edu.ua\/interepo\/wp-json\/wp\/v2\/pages\/257\/revisions"}],"predecessor-version":[{"id":274,"href":"https:\/\/projects.snau.edu.ua\/interepo\/wp-json\/wp\/v2\/pages\/257\/revisions\/274"}],"up":[{"embeddable":true,"href":"https:\/\/projects.snau.edu.ua\/interepo\/wp-json\/wp\/v2\/pages\/62"}],"wp:attachment":[{"href":"https:\/\/projects.snau.edu.ua\/interepo\/wp-json\/wp\/v2\/media?parent=257"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Key finding<\/h4>\n\n\n\n
1. How the system developed<\/h4>\n\n\n\n
2. What ESRS require<\/h4>\n\n\n\n
3. How ESRS relate to IFRS<\/h4>\n\n\n\n
4. The position in September 2026<\/h4>\n\n\n\n
5. Prospects for research and teaching<\/h4>\n\n\n\n
INTEREPO recommendations<\/h4>\n\n\n\n
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