SBR Sustainability, presentation and developments

ACCA · Strategic Professional · 8 questions

Name: ____________________ Date: ____________

IFRS S1 requires disclosure of sustainability-related risks and opportunities that could reasonably be expected to affect the entity's:
- A Share count
- B Audit fee
- C Prospects, including cash flows, access to finance and cost of capital
- D Tax charge only
The four core content areas of IFRS S1 and IFRS S2 are:
- A Plan, do, check and act
- B Governance, strategy, risk management, and metrics and targets
- C Inputs, outputs, outcomes and impacts
- D Assets, liabilities, income and expenses
Scope 2 greenhouse gas emissions are:
- A Direct emissions from owned sources
- B Indirect emissions from purchased electricity, steam, heating or cooling
- C All value chain emissions
- D Emissions from employee travel only
Which statement about IFRS 18 is correct?
- A It removes the statement of cash flows
- B It requires income and expenses to be classified into operating, investing, financing, income taxes and discontinued operations
- C It replaces IFRS 9
- D It applies only to banks
A transition risk in the climate-related context is:
- A A rise in sea level
- B A flood damaging a factory
- C A heatwave
- D A carbon tax that raises the cost of a company's inputs
Management-defined performance measures under IFRS 18 are:
- A Allowed only in the directors' report
- B Not allowed to be disclosed
- C Subtotals of income and expenses used in public communications that are not specified by IFRS
- D Required by IFRS 8
A company's sustainability report states that it is 'carbon neutral' but its calculation excludes most of its value chain. Which concern does this raise?
- A None, as Scope 3 is optional in all cases
- B Too much detail
- C Misleading information, because the claim is not faithfully represented
- D An excess of disclosure
Under IAS 1 and the Conceptual Framework, information is material if:
- A It is audited
- B Omitting, misstating or obscuring it could reasonably be expected to influence decisions of primary users
- C It is more than 5 percent of profit in all cases
- D It is disclosed in the notes

Answer key

1. C, 2. B, 3. B, 4. B, 5. D, 6. C, 7. C, 8. B

The information is for primary users making decisions about providing resources to the entity.
The structure follows the TCFD recommendations.
Scope 1 is direct and Scope 3 covers other indirect emissions in the value chain.
IFRS 18 replaces IAS 1 and requires defined subtotals, including operating profit.
Transition risks come from policy, technology, market and reputation changes. Floods and heatwaves are physical risks.
Entities must disclose and reconcile these measures in a single note.
The claim does not give a complete picture, and users can be misled about performance.
Materiality is judged by effect on users' decisions, not by a fixed percentage.