ISSB IFRS S1 General Requirements 2

Question 1

How does IFRS S1 define 'sustainability-related risks and opportunities'?

Accepted Answer

Risks and opportunities arising from sustainability-related issues that could affect entity value over short, medium, or long term

Answer

IFRS S1 defines sustainability-related risks and opportunities broadly as those that could affect the entity's value over any time horizon.

Question 2

What reporting location does IFRS S1 recommend for sustainability-related financial disclosures?

Accepted Answer

As part of the general purpose financial report, in the same document as financial statements

Answer

IFRS S1 recommends disclosures be included in the general purpose financial report, integrated with financial statements.

Question 3

Under IFRS S1, what must an entity disclose about its governance bodies responsible for sustainability risks?

Accepted Answer

Identity, skills, and oversight processes of governance bodies or individuals responsible for sustainability-related risks

Answer

IFRS S1 requires disclosure of who oversees sustainability risks, including their skills/competencies, how oversight is exercised, and how they are informed.

Question 4

What transition relief did the ISSB grant for the first reporting period under IFRS S1?

Accepted Answer

Entities may omit comparative information in the first year of applying IFRS S1

Answer

In the first year of applying IFRS S1, entities are not required to provide comparative period sustainability information.

Question 5

Under IFRS S1, when an entity cannot provide timely sustainability information, what alternative is permitted?

Accepted Answer

Entities may use information available at the reporting date even if not fully aligned with the period, with appropriate disclosure

Answer

IFRS S1 allows use of the best available information at the reporting date, provided the entity discloses the nature and source of any estimation uncertainty.

ISSB - International Sustainability Standards Board Practice Test

ISSB - International Sustainability Standards Board Practice Test

ISSB IFRS S1 General Requirements 2