Sustainability Update – First Two Sustainability Standards Issued

 

The International Sustainability Standards Board (ISSB) issued the first two sustainability standards — IFRS S1 and IFRS S2.

On 26 June 2023, the International Sustainability Standards Board (ISSB) issued the first two sustainability standards — IFRS S1 and IFRS S2. This commences a new set of reporting obligations for large companies globally. Many small and medium sized entities (SMEs) will also be impacted as they form part of the value chain for the large companies.

The new standards are effective for reporting periods commencing from 1 January 2024 and therefore the detail of the standards will not become examinable until 2025 (under our six-month cut-off rule). However, the topic of sustainability is currently examinable across a number of our subjects at all levels.  ISSB Vice-Chair Sue Lloyd has prepared two short recordings that explain the requirements of the new standards in an easily understood manner. The recordings can be found at the following link 'Supporting materials for IFRS Sustainability Disclosure Standards' and will provide a very useful overview of the topic for all CPA students.