Sustainability in financial statements: what some companies should already be preparing
By: Rebeca Sequeira
Financial Analyst | EAS LATAM
Circular 33-2023 of the Costa Rican Association of Public Accountants establishes the schedule for the application of IFRS S1 and S2. For the entities covered, the first mandatory report will be submitted in 2028, with information from the period ending December 31, 2027.
These standards, issued by the ISSB of the IFRS Foundation, explain how sustainability risks and opportunities can affect cash flows, access to finance, and the cost of capital. This relationship between sustainability and financial performance reflects part of the business legacy of COP26 , a topic we have already addressed at EAS LATAM and which is now even more relevant with the application of IFRS 1 and 2.
Which companies are affected?
The Circular includes entities with a public obligation to render accounts supervised by the CONASSIF superintendencies and large taxpayers.
Meanwhile, the Resolution MH-DGT-RES-0015-2026 It stipulates that, as of January 1, 2027, Large Taxpayers must maintain their accounting records under full IFRS. This resolution excludes IFRS S1 and S2 from its scope; the sustainability obligation stems from Circular 33-2023.
For entities that continue to apply IFRS for SMEs, the Circular states that S1 and S2 will not be mandatory until the corresponding regulations so determine. Other entities that apply full IFRS and are not in the mandatory categories may adopt them voluntarily.
What changes in practice?
IFRS S1 establishes general requirements on sustainability, while IFRS S2 focuses on climate. Both connect governance, strategy, risk management, metrics, and objectives with the business's financial perspectives.
In a hotel , for example, a water shortage can increase costs or limit available rooms, a flood can disrupt operations, and an investment in energy efficiency can reduce future expenses. Thus, sustainability ultimately affects operations, investments, and cash flow.
What can be said in advance?
During 2026, it is advisable to confirm the scope, assign responsibilities, and identify financially relevant risks. It is also important to review what data exists on energy, water, emissions, suppliers, and climate exposure, and how this data is incorporated into budgets, investments, and projections.
The Circular allows for the omission of comparative information in the first application period. Preparing from 2026 onwards helps to test processes and build reliable data, without making that year a mandatory comparison.
An initial review can help to define the scope of the work. At EAS LATAM, we can support this assessment and the preparation for IFRS S1 and S2.
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