STANDARDISATION OF SUSTAINABILITY-RELATED INFORMATION DISCLOSURE - THE IFRS FOUNDATION'S APPROACH
Abstract
The purpose of the article is to consider the prerequisites for the creation and critical analysis of the essence, significance, structure and content of the new international standards IFRS S1 "General Requirements for Disclosure of Sustainability-related Financial Information" and IFRS S2 "Climate-related Disclosures". The study was conducted using general scientific and special research methods, namely: logical, induction and deduction, comparative analysis – to identify common and distinctive features of IFRS S1 and IFRS S2 with other existing frameworks, standards and recommendations; abstract and logical – to summarise and formulate conclusions, graphical method and other. The article reveals the need for harmonisation and convergence of sustainability reporting standards in order to improve its transparency, understandability and comparability of company data in order to meet the information needs of investors and other users of financial reporting. The history and reasons for the establishment of the International Sustainability Standards Board as a body of the IFRS Foundation and the issuance of IFRS S1 and S2 are considered. The importance of sustainability-related disclosure as a component of financial reporting, as well as its relationship with financial statements and management report is investigated. It is considered how IFRS S1, S2 are related to International Financial Reporting Standards, as well as to existing documents of institutions operating in the field of sustainability reporting: Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), SASB Standards, CDSB Framework, IIRC International Integrated Reporting Framework and others. The structure of IFRS S1, the main requirements for disclosed information and its content are examined. The advantages and possible problems of implementing the relevant international standards at the global and national levels are identified. The main findings of the study can be used by Ukrainian companies to determine the format of sustainability-related disclosures that meet the current information needs of investors and other users of financial reporting.
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