Cost-benefit analysis is a fundamental component of accounting, auditing and sustainability standard-setting. Standard-setters are expected to develop reporting requirements that improve transparency, accountability and decision-usefulness while ensuring that the costs imposed on preparers, auditors and other stakeholders are justified by the benefits provided to users of reports. However, assessing costs and benefits in practice remains highly challenging.

This panel session will bring together standard-setters, academics and practitioners to discuss how costs and benefits are currently considered in the development and implementation of reporting requirements. The discussion will explore practical challenges associated with identifying, measuring and evidencing costs and benefits, including implementation costs, auditability, behavioural effects, investor usefulness and broader economic implications.

The session will also consider limitations of current approaches to cost-benefit analysis, including difficulties in quantifying qualitative benefits, capturing long-term effects and incorporating perspectives from different stakeholder groups. Panel members will discuss whether existing methods remain fit for purpose in an environment characterised by rapid technological change, AI and evolving user expectations.

The session aims to encourage broader discussion on how standard-setters, academics and stakeholders can collectively improve evidence gathering, research methodologies and approaches to evaluating the effectiveness, proportionality and practicality of reporting requirements.