ISSB Trivia 4 — Questions and Answers
Question 1: Which COP (Conference of the Parties) saw the formal announcement of the ISSB's creation?
- COP24 in Katowice
- COP25 in Madrid
- COP26 in Glasgow (Correct answer)
- COP27 in Sharm el-Sheikh
Correct answer: COP26 in Glasgow
The ISSB was formally announced at COP26 in Glasgow, Scotland in November 2021.
Question 2: How does the ISSB's materiality concept differ from the EU CSRD's approach?
- ISSB uses double materiality; EU CSRD uses single materiality
- ISSB uses single (financial) materiality; EU CSRD uses double materiality (Correct answer)
- Both use identical double materiality definitions
- ISSB uses triple materiality; EU CSRD uses double materiality
Correct answer: ISSB uses single (financial) materiality; EU CSRD uses double materiality
The ISSB applies single (financial/investor-focused) materiality, while EU CSRD applies double materiality, which also captures impacts on people and the environment.
Question 3: What role does the 'IFRS Sustainability Alliance' (formerly SASB Alliance) play for ISSB standards?
- It issues assurance opinions on ISSB disclosures
- It provides preparers and users a forum to support standard implementation (Correct answer)
- It enforces penalties for non-compliance with IFRS S1 and S2
- It determines which jurisdictions must adopt ISSB standards
Correct answer: It provides preparers and users a forum to support standard implementation
The IFRS Sustainability Alliance provides a forum for companies and investors to support consistent implementation of ISSB standards.
Question 4: What is the interoperability arrangement between ISSB standards and EU sustainability standards (ESRS)?
- Companies must choose one framework and cannot use both
- ESRS compliance automatically satisfies ISSB requirements
- ISSB and EFRAG developed interoperability guidance to minimize duplication (Correct answer)
- ISSB and ESRS have no formal relationship
Correct answer: ISSB and EFRAG developed interoperability guidance to minimize duplication
The ISSB and EFRAG developed interoperability guidance to help entities comply with both ISSB and ESRS requirements with minimal duplication.
Question 5: Which jurisdiction was the first to mandate adoption of IFRS S1 and S2?
- United States
- United Kingdom (Correct answer)
- Australia
- Nigeria
Correct answer: United Kingdom
The UK was among the first jurisdictions to formally commit to adopting IFRS S1 and S2 through its UK Sustainability Disclosure Standards.
Question 6: What does the ISSB's 'building blocks' approach refer to?
- The phased rollout of standards starting with climate, then biodiversity
- A foundation of global baseline standards that jurisdictions can build upon with additional requirements (Correct answer)
- The modular structure of SASB industry standards
- The step-by-step assurance process for ISSB disclosures
Correct answer: A foundation of global baseline standards that jurisdictions can build upon with additional requirements
The ISSB's building blocks approach means its standards form a global baseline that jurisdictions can supplement with additional local requirements.
Question 7: What is the relationship between the ISSB and the IASB (International Accounting Standards Board)?
- The ISSB replaced the IASB entirely
- Both boards operate independently under the IFRS Foundation (Correct answer)
- The IASB is a subset of the ISSB
- They are unrelated organizations with no formal connection
Correct answer: Both boards operate independently under the IFRS Foundation
Both the ISSB and IASB operate as independent standard-setting boards under the governance of the IFRS Foundation.
ISSB Trivia 4
Which COP (Conference of the Parties) saw the formal announcement of the ISSB's creation?