E2 IFRS Sustainability Disclosure Standards and ethics

Which are the four pillars of the core content of IFRS S1?

• 1 Governance, strategy, risk management, and metrics and targets
• 2 Planning, control, audit and review
• 3 Assets, liabilities, income and expenses
• 4 Revenue, cost, profit and tax

IFRS S2 is about:

• 1 Financial instruments
• 2 Leases
• 3 Revenue
• 4 Climate-related disclosures

An entity is exposed to the risk of new carbon taxes. What type of climate risk is this?

• 1 Transition risk
• 2 Liquidity risk
• 3 Credit risk
• 4 Physical risk

A factory could be damaged by flooding. What type of climate risk is this?

• 1 Physical risk
• 2 Tax risk
• 3 Market risk
• 4 Transition risk

Under the IFRS Sustainability Disclosure Standards, information is material if it could influence decisions of:

• 1 Only the government
• 2 The general public
• 3 Investors, lenders and other creditors
• 4 Only employees

What does double materiality add to financial materiality?

• 1 The entity's impacts on people and the environment
• 2 Two sets of financial statements
• 3 A tax adjustment
• 4 A second audit

Which are Scope 1 emissions?

• 1 Direct emissions from sources the entity owns or controls
• 2 Emissions from customers' use of products
• 3 Emissions from purchased electricity
• 4 Emissions in the supply chain

A finance director asks an accountant to overstate an entity's sustainability performance. Which behaviour does this describe?

• 1 Prudent reporting
• 2 A permitted policy choice
• 3 Greenwashing, which threatens integrity
• 4 A normal estimate