ISSB Guide 4

Question 1

How does the ISSB define materiality for sustainability-related financial information?

Accepted Answer

Information whose omission or misstatement could influence primary users' decisions

Answer

Under ISSB, information is material if omitting, misstating, or obscuring it could reasonably be expected to influence decisions made by primary users of general purpose financial reports.

Question 2

In the context of ISSB standards, what does 'enterprise value' refer to?

Accepted Answer

The value of the entity to its equity and debt capital providers

Answer

Enterprise value in ISSB standards captures the value of the entity from the perspective of its equity and debt holders, reflecting how sustainability factors affect financial performance and condition.

Question 3

What constitutes 'reasonable and supportable information' in ISSB guidance?

Accepted Answer

Information available without undue cost or effort that is plausible and consistent with available evidence

Answer

Reasonable and supportable information is that which is accessible without undue cost or effort and is plausible and consistent with available evidence about past and expected future conditions.

Question 4

Under ISSB's 'value chain' concept, which activities must entities consider?

Accepted Answer

Upstream and downstream activities, resources, relationships, and business partners

Answer

ISSB's value chain concept encompasses the full range of activities, resources, and relationships — both upstream and downstream — that contribute to or are affected by the entity's operations.

Question 5

What transitional relief did the ISSB provide regarding Scope 3 GHG emissions disclosure?

Accepted Answer

A one-year transitional relief from disclosing Scope 3 emissions in the first reporting period

Answer

The ISSB granted a one-year transitional relief, allowing entities to omit Scope 3 GHG disclosures during their first reporting period under IFRS S2.

ISSB - International Sustainability Standards Board Practice Test

ISSB - International Sustainability Standards Board Practice Test

ISSB Guide 4