ICAEW AF · Chapter 2 · Question 7 of 7
Under IFRS S1, an entity should disclose information about which sustainability-related risks and opportunities?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Those 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
Explanation
IFRS S1 is aimed at the primary users of general purpose financial reports. It requires disclosure of sustainability-related risks and opportunities that could reasonably be expected to affect the entity's prospects, meaning its cash flows, access to finance or cost of capital over the short, medium or long term. The focus is on information that is useful to investors and lenders, not on every environmental matter.
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