What is BRSR?

What is BRSR?

What is BRSR?

Sustainability Reporting is an emerging discipline encompassing the disclosure and communication of an entity’s non -financial – environmental, social, and governance (ESG) performance and its overall impact. Over the last few years, more and more entities are now preparing and disclosing their sustainability reports either under a mandate or voluntarily as per the reporting frameworks/ standards provided by standard-setting bodies/ regulators. Sustainability reporting will only be beneficial if it is of sufficient quality and the market understands and trusts the framework. It is essential that sustainability reporting framework delivers information that is fair, balanced, understandable, transparent, consistent, and comparable.

On 5th May 2021, Security Exchange Board of India brought out amendments to the existing provisions of business responsibility report as enshrined in Regulation 34(2)(f) of SEBI-LODR. The amended provisions now call for discontinuation of the current reporting of business responsibility report (BRR) after the financial year 2021-22. The new report as “Business Responsibility and Sustainability Report” (BRSR) based on the ESG parameters. SEBI has specified the format for BRS reporting, vide its notification dated 10th May 2021. The aforesaid format which is broader than existing format for BRR is also coupled with the guidance note to enable companies to interpret the scope of disclosures required to be made in such report, i.e., BRSR.

Ind AS Accounting Standards

Foundation stone for BRSR

Key disclosures in BRSR

A – BRR vs. BRSR General information and general disclosures

B – BRR vs. BRSR Financial disclosures Vs. Management and process disclosures

C – BRR vs. BRSR Other details and Business Responsibility Information

Role of Chartered Accountants in BRSR

Observations about financial assets and liabilities

Principles and principle-wise performance disclosures