ISSB Guide 2

Question 1

Under IFRS S1, which group is identified as the primary audience for sustainability-related financial disclosures?

Accepted Answer

Primary users of general purpose financial reports

Answer

IFRS S1 targets primary users of general purpose financial reports — investors, lenders, and other creditors — who need information to make resource allocation decisions.

Question 2

What does the IFRS S1 concept of 'proportionality' allow smaller entities to do?

Accepted Answer

Apply standards in a manner commensurate with their resources and capabilities

Answer

Proportionality recognizes that entities should apply IFRS S1 in a way that reflects their size, the complexity of their operations, and available resources.

Question 3

According to IFRS S1 guidance, over which time horizons must entities consider sustainability-related risks and opportunities?

Accepted Answer

Short, medium, and long term

Answer

IFRS S1 requires entities to assess and disclose sustainability-related risks and opportunities across short-, medium-, and long-term planning horizons.

Question 4

When IFRS Sustainability Disclosure Standards do not address a specific sustainability topic, what should an entity do?

Accepted Answer

Apply judgment using a prescribed hierarchy of sources such as SASB Standards

Answer

Entities use a hierarchical sources list — including SASB Standards, CDSB Framework, and other established frameworks — to fill gaps not covered by existing ISSB standards.

Question 5

In ISSB guidance, what does 'connected information' require entities to ensure?

Accepted Answer

Consistency and linkage between sustainability disclosures and financial statements

Answer

Connected information means sustainability disclosures must be consistent with and linked to information in the entity's financial statements to give a coherent picture.

ISSB - International Sustainability Standards Board Practice Test

ISSB - International Sustainability Standards Board Practice Test

ISSB Guide 2