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Mark Kronforst, partner at EY, participated in a video interview during Nareit’s REITwise: 2024 Law, Accounting & Finance Conference held March 19-21 in Hollywood, Florida.

Kronforst discussed the implications of the SEC's recently issued climate disclosure rule. He highlighted the key adjustments made from the proposal, emphasizing the exclusion of Scope 3 emissions and the incorporation of materiality across the rules, providing companies with more flexibility. He also outlined the staggered timeline for compliance, depending on company size and disclosure topic.

According to Kronforst, companies must prioritize preparations for the financial statement requirements, which necessitate tracking severe weather conditions and related expenditures, starting Jan. 1, 2025. "The number one item that companies should focus on are the financial statement requirements... because those are the ones that are probably going to take a significant amount of time and they're subject to audit."

Kronforst also addressed the FASB's updated accounting standards on reportable segment disclosures, noting changes such as the inclusion of segment expenses and expanded requirements for single-segment companies. He highlighted a potential conflict between FASB and SEC rules regarding the reporting of non-GAAP measures, urging companies to seek legal counsel before implementation.