ACCA Strategic Professional · Strategic Business Reporting (International) · Analysis and interpretation of financial and non-financial information and measurement of performance
Kestrel plc is preparing sustainability-related financial disclosures under IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information. Which information is IFRS S1 designed to require an entity to disclose?
IFRS S1 requires disclosure of material information on sustainability-related risks and opportunities that could reasonably affect the entity's prospects, meaning its cash flows, access to finance or cost of capital, because the information is aimed at the primary users of general purpose financial reports.
- AInformation on all sustainability matters that affect society, regardless of whether they affect the entity's cash flows
- BInformation about sustainability-related risks and opportunities that could reasonably be expected to affect the entity's prospects, as useful to primary users of general purpose financial reportsCorrect
- COnly quantitative greenhouse gas emissions data audited by an external verifier
- DInformation required by local environmental regulators only
Explanation
IFRS S1 requires disclosure of material information about sustainability-related risks and opportunities that could reasonably be expected to affect the entity's cash flows, access to finance or cost of capital over the short, medium or long term. It focuses on investors and other primary users, not all societal impacts. The first option describes a broader impact (double materiality) approach, which IFRS S1 does not adopt.
Did you get it right without looking?
One question tells you little. A timed set on Analysis and interpretation of financial and non-financial information and measurement of performance shows your real accuracy, how long you take and where you lose marks.
More Analysis and interpretation of financial and non-financial information and measurement of performance questions
- Zenith plc presents 'Adjusted operating profit' in its annual report, defined as operating profit before restructuring costs. Restructuring …
- Halden Group previously reported segments by product (Alpha, Beta, Gamma). From this year the CODM reviews results by region (North, South) …
- Orion Ltd reports in its sustainability report that it is exposed to carbon pricing regulation. Under IFRS S2 Climate-related Disclosures, w…
- Orlin plc presents an alternative performance measure, 'underlying profit', in its annual report. It excludes restructuring costs that have …
- Zeta Co reports revenue of $800m, gross profit of $240m and profit from operations of $96m. Management proposes to reclassify $24m of deprec…
- Orion Ltd, an IFRS reporter, is drafting disclosures on climate risk. Which statement is correct under IFRS S1 General Requirements for Disc…