ISSB ISSB Standards Implementation 1 — Questions and Answers
Question 1: When did the ISSB formally issue IFRS S1 and IFRS S2 as final standards?
- June 2023 (Correct answer)
- January 2022
- December 2021
- March 2024
Correct answer: June 2023
IFRS S1 and IFRS S2 were issued as final standards by the ISSB in June 2023, marking a major milestone for global sustainability reporting.
Question 2: Which jurisdiction was among the first to adopt mandatory IFRS S1 and S2 reporting requirements for publicly listed companies?
- Australia (Correct answer)
- United States
- European Union
- China
Correct answer: Australia
Australia committed to mandatory application of IFRS S1 and S2 aligned standards for large entities starting in reporting periods from 2025, among the earliest formal adopters.
Question 3: What is the ISSB's 'building blocks' approach to global interoperability?
- IFRS S1 and S2 serve as a global baseline that jurisdictions can build upon with additional local requirements (Correct answer)
- Jurisdictions must adopt ISSB standards exactly as written with no local additions
- ISSB standards replace all existing local sustainability frameworks without exception
- Building blocks refers to phased adoption over 10 years for developing nations
Correct answer: IFRS S1 and S2 serve as a global baseline that jurisdictions can build upon with additional local requirements
The ISSB designed its standards as a global baseline 'building block,' allowing jurisdictions to add requirements (like double materiality) on top without conflicting.
Question 4: How does the ISSB's interoperability agreement with the GRI benefit preparers?
- Entities reporting under both ISSB and GRI standards can use GRI disclosures to satisfy some ISSB requirements, reducing duplication (Correct answer)
- ISSB and GRI have merged into a single reporting framework replacing both
- GRI disclosures automatically satisfy all ISSB requirements when completed
- The agreement only applies to entities in developing countries
Correct answer: Entities reporting under both ISSB and GRI standards can use GRI disclosures to satisfy some ISSB requirements, reducing duplication
The ISSB-GRI interoperability agreement allows entities using both frameworks to coordinate disclosures and reduce duplicative reporting burdens.
Question 5: What transition relief does IFRS S1 provide for entities in their first reporting period regarding Scope 3 emissions?
- Scope 3 emissions disclosure under IFRS S2 may be omitted entirely in the first year (Correct answer)
- Entities may use estimated Scope 3 figures from third-party databases only
- Scope 3 relief applies for three years from first adoption
- No Scope 3 transition relief exists — full disclosure is required from day one
Correct answer: Scope 3 emissions disclosure under IFRS S2 may be omitted entirely in the first year
IFRS S2 transition relief allows entities to omit Scope 3 GHG emissions in the first year of application due to data collection complexity.
Question 6: Which body oversees the ISSB and sets its governance framework?
- The IFRS Foundation Trustees (Correct answer)
- The G20 Leaders Summit
- The United Nations Environment Programme
- The Financial Stability Board
Correct answer: The IFRS Foundation Trustees
The ISSB operates under the governance oversight of the IFRS Foundation Trustees, the same body that oversees the IASB.
ISSB ISSB Standards Implementation 1
When did the ISSB formally issue IFRS S1 and IFRS S2 as final standards?