ISSB IFRS S1 General Requirements

Question 1

What is the primary objective of IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information?

Accepted Answer

To require entities to disclose information about sustainability-related risks and opportunities material to investors

Answer

IFRS S1 requires entities to disclose sustainability-related risks and opportunities that could affect their cash flows, financing access, or cost of capital.

Question 2

Under IFRS S1, what are the four core content pillars that sustainability-related financial disclosures must address?

Accepted Answer

Governance, Strategy, Risk Management, and Metrics & Targets

Answer

IFRS S1 is structured around Governance, Strategy, Risk Management, and Metrics & Targets — the same four pillars as the TCFD framework.

Question 3

Which concept does IFRS S1 use to determine what sustainability information must be disclosed?

Accepted Answer

Materiality — information material to primary users of general purpose financial reports

Answer

IFRS S1 applies investor-focused materiality, meaning information is material if omitting it could influence decisions of primary users of general purpose financial reports.

Question 4

Under IFRS S1, what is the required timing for sustainability disclosures relative to financial statements?

Accepted Answer

At the same time as the related financial statements

Answer

IFRS S1 requires sustainability disclosures to be released at the same time as the related financial statements to ensure consistency.

Question 5

What does IFRS S1 require entities to disclose about their use of scenario analysis?

Accepted Answer

Whether and how scenario analysis is used to assess resilience of business strategy to sustainability risks

Answer

IFRS S1 requires entities to disclose whether and how they use scenario analysis to assess resilience, allowing qualitative or quantitative approaches.

ISSB - International Sustainability Standards Board Practice Test

ISSB - International Sustainability Standards Board Practice Test

ISSB IFRS S1 General Requirements