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Compliance management today requires visibility and proactive planning. With numerous regulatory deadlines across Income Tax, GST, FEMA, MCA, SEZ, and STPI, staying organized is essential for businesses to operate smoothly. We have put together the Compliance Calendar for FY 2026–27, designed to help organizations track key due dates and integrate reminders directly into Outlook calendars for better compliance management. Sharing this resource with the hope that it helps teams stay ahead of deadlines and focused on what matters most, building resilient and responsible businesses.

The Shift from Mitigation to Adaptation In the last decade, the main concern of corporate climate strategies has been the reduction of greenhouse emissions and the achievement of the target of net-zero emissions. Although the prevention of global warming is the key, the increasing effects of climate change have made climate adaptation an important concern. The severe weather changes, increase in temperature, water scarcity, and sea level rise are now being witnessed globally, which are negatively affecting supply chains, infrastructure, and commercial operations globally. Businesses are realizing that cutting carbon emission reduction is not enough. In spite of all the mitigation efforts, there are some unavoidable effects of climate change, and enterprises need to start preparing for the new risks. Climate adaptation is shifting from a niche sustainability issue to a critical part of an enterprise’s overall ESG strategy. This shift is illustrated by the financial investment required to address the issue of climate resilience. The Adaptation Gap Report 2024 by the United Nations Environment Programme indicated that developing countries will require between $215 billion and $387 billion annually starting from 2030 to address the issue of climate change. The financial impact of the issue is already apparent. In 2024, the financial losses due to natural disasters across the globe are estimated at $320 billion. Therefore, the financial impact of the issue is already apparent. In this case, adapting to the issue of climate change is no longer only a matter of environmental protection but is becoming a matter of strategic business, as companies must now consider the financial implications of climate-related disruptions on their operations and long-term viability. Understanding Physical Climate Risks for Businesses Physical climate risks, as the name suggests, refer to the direct impacts of climate change on assets, operations, and supply chains. These risks are generally categorized as acute and chronic. Extreme weather events, floods, hurricanes, wildfires, and heatwaves are examples of acute risks that can cause problems with operations. On the other hand, chronic risks involve longer-term climate shifts and may include changes in sea levels, droughts, and increased temperatures. With the rising cases of weather-related disasters, the importance of adaptation to these changes cannot be overemphasized. From 1985 to 2025, losses of around US $7.2 trillion are observed from natural disasters. This, therefore, highlights the rising risk to businesses as a result of these changes. These dangers are not exclusive to any certain industry. Manufacturing facilities situated in flood-prone regions may be compelled to cease operations, while agricultural endeavors may see diminished productivity as a result of climatic alterations. These alterations may be experienced across multiple sectors, including energy and retail. Financial institutions and investors are progressively evaluating physical climate concerns. Financial institutions, including lenders and insurance providers, are evaluating companies' vulnerability to climate-related risks. This has compelled businesses to incorporate risk analysis into their strategy planning. Why Climate Adaptation Is Becoming a Business Priority The importance of putting more emphasis on climate adaptation in corporate ESG agendas has been heightened by multiple factors, including the growing frequency and severity of climate-related disasters and ongoing real-world financial consequences for businesses such as supply chain disruptions, damage to physical infrastructure, and operational delays. There is also greater expectation from regulators and global frameworks regarding the disclosure of climate risk. The Task Force on Climate-related Financial Disclosures suggests that companies should identify both transitional and physical risks and disclose how their strategies will remain resilient to the risks they may face based on the different climate scenarios. There is increasing demand for more transparency from investors about how businesses will manage long-term climate risk. Climate resilience is being viewed by institutional investors as an important indicator of a company’s financial stability. Companies unprepared for the effects of climate may experience more expensive insurance coverage, decreased asset valuation, and/or limited access to funding sources. The case for the economics of adaptation is beginning to come into view as well. As a 2024 analysis by the Boston Consulting Group revealed, there was more than $1 trillion of worldwide climate damage between 2020 and 2024, and so the financial impact of extreme weather events is rising. As a result, climate adaptation is being seen as the new frontier for ESG leadership. Climate-Resilient Business Strategies To address physical climate risks, proactive approaches to adapting to the situation have to be developed. Organizations have to conduct exhaustive assessments of the risks that might be caused by the climatic conditions. In this case, the impact that the climatic conditions might have on the business is analyzed. This is where the use of scenario analysis is important. Another key aspect that has to be addressed is the issue of infrastructure. In this case, the business might have to invest in the construction of facilities that are able to protect the business from the effects of extreme climatic conditions. In this case, the business might have to invest in the construction of facilities that protect the business from floods. In addition, the business might have to invest in the installation of technologies that help to conserve water. In this case, the business might have to invest in the installation of air conditioning units. However, corporate preparedness remains low despite acknowledging the risks that may be caused by climatic conditions. Research done on more than 1,000 publicly listed firms revealed that only 23% of these firms have put in place mechanisms to address this problem. Therefore, investments in infrastructure that is resistant to climate change, sustainable water management, and natural solutions can help to mitigate risks to operation in the long term as well as environmental objectives. This may require collaboration with other actors because risks are often beyond an organization. Governance and ESG Integration Effective climate adaptation practices require robust climate adaptation governance practices and oversight by the board of directors. Climate risk management is an essential part of enterprise risk management practices, ensuring that adaptation practices are consistent with overall corporate governance practices. The board plays an essential part in overseeing the assessment of climate risks, developing resilience goals, and monitoring progress. The transparent communication of risks and adaptation techniques is becoming increasingly expected by various stakeholders and regulatory bodies in firms. The importance of ESG reporting frameworks in prioritizing resilience in overall sustainability reporting is becoming prominent. The transparent communication of adaptation techniques by firms is likely to increase investor trust and readiness for the long-term effects of climate change. Next Step: Climate Resilience in Corporate Strategy As much as the climate risks are rising, adaptation is turning out to be a key component of the sustainability strategy for many firms. Companies that focus only on cutting down emissions and ignore the physical climate dangers may face a shock that threatens their sustainability. According to the World Meteorological Organization, the period between 2015 and 2024 has been the warmest decade on record. This implies that extreme weather occurrences and climate upsets might worsen in the coming future. As a way of countering the effects of climate change, many organizations are going a step further than their net-zero targets and attempting to make their operations more climate-resilient. Companies can better prepare for environmental shocks and keep their operations going by including climate adaptation in their governance structures, risk management frameworks, and investment decisions. In this context, it can be said that the question is no longer whether businesses should prepare for climate impacts but how effectively they can adapt. Companies that treat climate resilience as a strategic priority will be better positioned to navigate climate uncertainty while creating sustainable long-term value. Author - Ayushika Saraswat (Consultant)

The risks that organizations once monitored from a distance are now actively reshaping business models, capital decisions, and strategic priorities. Below are the five risks that every leader should focus on: 1. Cybersecurity – Cyber incidents are no longer just an IT problem. They disrupt operations, delay customer interactions, and attract regulatory scrutiny. 2. Digital Disruption & AI – AI adoption is accelerating faster than governance frameworks can keep up. The question is no longer whether to adopt, it's who is accountable when things go wrong. 3. Business Resilience – Resilience today isn't about recovering after a disruption. It's about sustaining performance while disruption is still underway. 4. Geopolitical Uncertainty – Trade disputes, policy shifts, and regulatory changes are happening without warning. Organizations must embed these into strategic planning, not treat them as external noise. 5. Human Capital – 40% of organizations worldwide identify talent as a key risk. Having a strategy means little without the people ready to execute it. What makes these risks truly complex is how deeply interconnected they are. A cyber incident amplifies operational fragility. Geopolitical shifts strain already-stretched supply chains. Talent gaps slow down an organization's ability to respond to any of it. In this environment, Internal Audit is shifting from process reviewer to risk interpreter. Download & Read our full Point of View below.

ESG Perspective – March 2026 Edition presents a curated overview of key global developments shaping the evolving ESG and sustainability landscape. The edition highlights important regulatory updates, emerging global standards, and market trends across areas such as carbon markets, sustainability reporting and disclosure frameworks, climate policy, circular economy regulations, and sustainable finance. As governments, regulators, and investors continue to strengthen expectations around transparency, accountability, and climate action, businesses are increasingly required to navigate a complex and rapidly evolving ESG environment. This edition distills significant policy announcements, regulatory reforms, and standard-setting initiatives from across jurisdictions into clear, decision-relevant insights. By bringing together these developments in one place, the report aims to help organizations stay informed, anticipate regulatory shifts, and better prepare for the transition toward more sustainable and responsible business practices. Read the full edition for a deeper look at the latest global ESG developments and regulatory insights.

Standard Setters’ Updates – H2 2025 This edition provides a concise and practical overview of the most significant accounting, regulatory, and sustainability reporting developments from the second half of 2025, helping organizations prepare for upcoming changes in 2026 and beyond. Key Highlights: Major Accounting Standards Updates (ASUs) issued in H2 2025, covering credit losses, internal-use software, derivatives and hedging, purchased loans, government grants, interim reporting, and codification improvements. Simplification and consistency initiatives by FASB, aimed at reducing complexity, improving comparability, and better aligning accounting outcomes with economic substance. Snapshot of FASB current projects, including debt exchanges, environmental credit programs, crypto asset transfers, equity method improvements, and cash flow statement refinements. Regulatory developments from the SEC, including leadership changes, crypto asset guidance, AI and fraud task forces, financial reporting manual updates, and implications of major U.S. fiscal legislation. Sustainability reporting developments, highlighting ISSB exposure drafts and significant simplification of European Sustainability Reporting Standards (ESRS), with reduced reporting burden and enhanced interoperability. Practical effective-date guidance, with appendices outlining ASUs effective in 2025 and 2026 to support timely implementation planning.

India’s IT landscape has experienced a dramatic shift over recent decades, moving away from traditional, paper-dependent bookkeeping methods to a vibrant, tech-powered ecosystem. Today, organizations depend on — ranging from enterprise resource planning (ERP) tools to cloud platforms — not only to boost efficiency but also to safeguard compliance, security, and data accuracy of financial reporting. This change entails additional responsibility since keeping thorough records helps to prove financial integrity and responsibility. An audit trail acts as the "black box" of an organization—a kind of financial journal that captures every activity. It records who did what, when, and how within the financial system. This creates a straightforward way to verify the accuracy and accountability of financial records. Think of it as holding a backstage pass that lets you peek behind the curtain—offering complete visibility into every transaction for transparency, tracking access to sensitive data to bolster security, and capturing system changes to ensure compliance. With their growing importance, audit trails are now a legal must-have in India, following regulatory mandates that came into effect on April 1, 2023. The push for audit trail comes straight from the Companies (Accounts) Rules, 2014, where Rule 3(1) says any organization using accounting software—whether it's ERP systems or even web portals—must have a permanent audit trail that can't be turned off. It’s got to automatically track every change, stamp it with a timestamp, and keep those records on hand for audits. Meanwhile, auditors, under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014, must double-check that this feature was running all year, and wasn't tampered with. This rule isn't just for large organizations—it applies to every Indian organization. Whether it's nonprofits under Section 8 or foreign entities, it covers everything from standalone to consolidated financial statements.

Welcome to our Standard Setters' Updates of FASB & SEC. In this publication, we present a concise overview of the latest developments in financial reporting and highlight key considerations as we move through 2025. The Accounting Updates summarize FASB's new guidance issued in the first half of the current year and highlight the accounting standards that are effective in 2025. The FASB Current Projects section provides an overview and status of the items that FASB is actively working on. The Regulatory Updates section brings you noteworthy updates from the SEC. The Sustainability Reporting Developments section outlines the changes to ISSB’s Disclosure and European Union’s Reporting requirements. The Financial Accounting Standards Board (FASB), in November 2024, issued ASU 2024-03 which requires public business entities to disaggregate expenses in the income statement into specific categories and reconcile those to the totals reported in the financial statements. Subsequently, the Board realized a clarification was needed to avoid confusion regarding when the standard applies, particularly in interim periods. Therefore, the Board issued ASU 2025-01 clarifying the effective date to be the first annual reporting period beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. In 2022, the Securities and Exchange Commission (SEC) published interpretive guidance as Staff Accounting Bulletin (SAB) No. 121 on Topic 5.FF, Accounting for Obligations to Safeguard Crypto-Assets an Entity Holds for its Platform Users. SAB No. 121 required entities safeguarding crypto-assets to record a liability and a corresponding asset at fair value. However, this guidance created practical challenges and accounting complexities. To address these concerns, the SEC later issued SAB No. 122, rescinding the interpretive guidance published as SAB No. 121. The amendment removes the obligation to recognize a safeguarding liability and corresponding asset, instead directing entities to apply traditional loss contingency guidance under ASC 450-20: Loss Contingencies when accounting for obligations to safeguard crypto-assets. Therefore, the Board issued ASU 2025-02 to inform about SAB No. 122 rescinding the interpretive guidance in SAB No. 121. Entities should apply the rescission of Topic 5.FF on a fully retrospective basis in annual periods beginning after December 15, 2024.

In a dynamic and fast-paced global environment, organizations are navigating ever-increasing challenges driven by technological advancements, environmental demands, and changing societal expectations. These changes blur traditional risk boundaries and create a complex, interconnected risk landscape. As a result, it has become imperative for internal audit functions and organizations as a whole to develop the ability to identify, understand, and mitigate risks, enabling them to achieve resilient and sustainable growth. These emerging threats also provide internal audit teams with an opportunity to demonstrate agility, prudence, and strategic insights, thereby reinforcing their role in enhancing organizational resilience and long-term value creation. Business continuity risks are probable disruptions that hinder an organization's ability to operate effectively and deliver essential services. The disruptions may arise from multiple sources such as natural calamities, technological disruption, cybersecurity incidents, geopolitical conflicts, and supply chain disruptions. The COVID-19 pandemic or Suez Canal blockage were recent and powerful examples of how such risks can severely impact global operations. Continuity risks are highly interconnected and interdependent. A minor disruption in one part of the chain can trigger a domino effect, leading to operational and financial consequences globally. Thus, strengthening operational resilience is essential for maintaining stakeholder trust and sustaining long-term value delivery. Human capital risk is the vulnerability organizations encounter in attracting, retaining, and developing their talent. Employees are the most valuable assets and vital pillars of any organization. Failure to manage talent effectively can significantly impact business continuity, innovation, and competitive edge.

The importance of transparent financial reporting cannot be overstated in today's complex business environment. Investors, lenders, and other capital providers rely heavily on financial statements to evaluate an entity's performance, assess its prospects for future cash flows, and benchmark it against peers. A critical component of this evaluation is understanding the composition of expenses, as they often reveal key insights into cost structures, operational efficiencies, and long-term sustainability. Historically, U.S. GAAP has not required consistent disaggregation of income statement expenses, leading to diversity in reporting practices. This lack of standardization has posed challenges for users in comparing financial results across entities and industries. Recognizing this gap, the Financial Accounting Standards Board (FASB) introduced the proposed Accounting Standards Update (ASU) Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses in July 2023. After gathering extensive feedback through public comments and roundtable discussions, the FASB finalized the amendments in November 2024. These changes aim to enhance the decision-usefulness of financial reporting by requiring disaggregated expense disclosures within the footnotes of financial statements. In January 2025, FASB issued Accounting Standard Updates No. 2025-01, Income Statement-Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. The updates apply to all public business entities and shall be effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted.

The Securities and Exchange Board of India (SEBI) has introduced a new Industry Standard on "Minimum Information to be Provided for Review by the Audit Committee and Shareholders for Approval of Related Party Transactions (RPTs)." This standard, effective from April 1, 2025, applies to all listed entities in India and aims to standardize reporting and disclosure requirements, thereby elevating governance, transparency, and oversight of related party transactions (RPTs). The key requirements include ensuring accurate identification of all related parties as per Regulation 2(1)(zb) of SEBI’s LODR Regulations, 2015. Transactions must be classified based on materiality, distinguishing between material RPTs, transactions involving promoters or promoter groups exceeding prescribed thresholds, and residual RPTs outside the above categories. Internal auditors must verify that adequate documentation is maintained for each related party transaction (RPT), capturing all relevant details as applicable. This includes basic details of the related party, relationship and ownership of the related party, financial performance of the related party, details of previous transactions with the related party, amount of the proposed transactions, and basic details of the proposed transaction. Additional details must also be maintained for proposed transactions relating to the sale, purchase, or supply of goods or services, or any other similar business transaction; loans, inter-corporate deposits, or advances given by the listed entity or its subsidiary; investments made by the listed entity or its subsidiary; and guarantee (excluding performance guarantee), surety, indemnity, or comfort letter made or given by the listed entity or its subsidiary.

Explore how audits empower healthcare providers to tackle AI risks, policy shifts, and pricing reforms with confidence.