ISSB Guide 5

Question 1

What is the effective date for IFRS S1 and IFRS S2 as published by the ISSB?

Accepted Answer

Annual periods beginning on or after January 1, 2024

Answer

IFRS S1 and IFRS S2, published in June 2023, are effective for annual reporting periods beginning on or after January 1, 2024.

Question 2

Which first-year transitional relief in IFRS S1 allows entities to publish sustainability disclosures separately from the financial statements?

Accepted Answer

The timing relief permitting later publication of sustainability disclosures

Answer

A timing relief in IFRS S1 allows first-year adopters to publish their sustainability disclosures after the financial statements, easing the preparation burden in the initial period.

Question 3

Under ISSB's first-year transitional provisions, which of the following is an entity NOT required to provide?

Accepted Answer

Comparative period sustainability-related financial information

Answer

In the first reporting period, entities are exempt from providing prior-period comparative sustainability disclosures, acknowledging the retrospective challenges of first-time adoption.

Question 4

Where does ISSB guidance recommend entities include their sustainability-related financial disclosures?

Accepted Answer

As part of the general purpose financial report, such as in management commentary

Answer

ISSB recommends sustainability disclosures be included in the general purpose financial report to reinforce the connectivity between sustainability and financial information.

Question 5

What is the current ISSB position on external assurance of sustainability disclosures?

Accepted Answer

The standards do not mandate assurance but acknowledge its importance; jurisdictions may add requirements

Answer

IFRS S1 and IFRS S2 do not currently mandate external assurance, though ISSB recognizes assurance's importance and jurisdictions may impose it through their own adoption frameworks.

ISSB - International Sustainability Standards Board Practice Test

ISSB - International Sustainability Standards Board Practice Test

ISSB Guide 5