Subject. This article discusses the requirements for disclosure of sustainability factors in financial statements due to the release of the International Disclosure Standard IFRS S1 – General Requirements for Disclosure of Sustainability-related Financial Information. Objectives. The article aims to reveal the content of the main provisions set forth in the IFRS S1 Standard issued by the International Sustainability Standards Board (ISSB) (sponsored by the IFRS Foundation), assess the possibility of applying the requirements of the Standard in Russia, and identify possible problems in its implementation and propose ways to solve them. Methods. For the study, we used analysis, synthesis, comparison, generalization, and abstraction. Results. The article defines that the presentation of information on risks and opportunities related to sustainable development should be carried out from the perspective of four aspects, namely governance, strategy, risk management, metrics and goals of the organization in the field of sustainable development. It discloses the content of the main sections of the Standard and formulates the factors and conditions for the applicability of the IFRS S1 Standard in Russia, as well as possible problems associated with its application, and proposals for their solution. Conclusions. The requirements for disclosure of financial information on risks and opportunities related to sustainable development, established by the International Disclosure Standard IFRS S1, are aimed to increase the availability of key users of financial statements to information reflecting the impact of sustainable development factors on the financial position, financial results, and cash flows of the organization. Standardization of disclosure of such information can help reduce the costs of preparers, analysts, auditors and other interested users, and stimulates the current trend of introducing the concept of sustainable development into management practice, including by Russian organizations.
Keywords: standard, IFRS, information disclosure, risks, requirements, sustainable development, SASB
References:
Efimova O.V., Rozhnova O.V. [The strategy for harmonizing financial and non-financial reporting on climate risk disclosures. Part 1]. Uchet. Analiz. Audit = Accounting. Analysis. Auditing, 2020, vol. 7, no. 3, pp. 18–25. (In Russ.) URL: Link
Efimova O.V., Rozhnova O.V. [The strategy for harmonizing financial and non-financial reporting on climate risk disclosures. Part 2]. Uchet. Analiz. Audit = Accounting. Analysis. Auditing, 2020, vol. 7, no. 4, pp. 6–17. (In Russ.) URL: Link
Malinovskaya N.V. [Approaches to climate-related risk disclosure in the draft international climate-related disclosure standard]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2022, vol. 25, iss. 7, pp. 728–746. (In Russ.) URL: Link
Malinovskaya N.V. [Transformation of global regulation of non-financial reporting]. Ekonomicheskie nauki, 2022, no. 2 (207), pp. 114–116. (In Russ.) URL: Link
Sapozhnikova N.G. [Formation of risks' information in corporate accounting and reporting]. Uchet. Analysis. Audit = Accounting. Analysis. Auditing, 2021, vol. 8, no. 5, pp. 41–54. (In Russ.) URL: Link
Abdalova E.B., Karelskaia S.N. [Global trends in the corporate reporting development]. Uchet. Analiz. Audit = Accounting. Analysis. Auditing, 2022, vol. 9, no. 1, pp. 19–30. (In Russ.) URL: Link
Gordova M.A. [Problems of accounting and disclosure of information on climate risks in the reporting of economic entities]. Ekonomicheskie nauki, 2022, no. 7 (212), pp. 185–190. (In Russ.) URL: Link
Druzhilovskaya E.S. [Problems of risk disclosure in the financial statements of organizations and ways to solve them]. Bukhuchet v zdravookhranenii = Accounting in Healthcare, 2022, no. 5, pp. 21–28. (In Russ.) URL: Link
Zenkina I.V. [Trends and innovations in reporting on the sustainable development of economic entities]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2022, vol. 25, iss. 1, pp. 4–28. (In Russ.) URL: Link
Nesterova A.A. [Integration of sustainable development goals into financial statements in accordance with the exposure Draft IFRS S1 “General Requirements for Disclosure of Sustainability-Related Financial Information”]. Upravlencheskii uchet = Management Accounting, 2023, no. 4, pp. 237–243. URL: Link (In Russ.)
Safonova I.V. [Reporting of economic entities: horizons of development in the focus of ESG-transformation of digital economy]. Innovatsionnoe razvitie ekonomiki = Innovative Development of Economy, 2021, no. 6, pp. 239–244. (In Russ.) URL: Link
Serebryakova T.Yu., Fedorova L.P., Gordeeva O.G., Malinovskaya N.V. Risks and Internal Control in the Organization Management. Journal of Advanced Research in Dynamical and Control Systems, 2020, vol. 12, no. 7 Special Iss., pp. 322–331. URL: Link
Abraham S., Shrives Ph.J. Improving the Relevance of Risk Factor Disclosure in Corporate Annual Reports. The British Accounting Review, 2014, vol. 46, iss. 1, pp. 91–107. URL: Link
Mbithi E., Moloi T., Wangombe D. Corporate Risk Disclosure: A Systematic Literature Review and Future Research Agenda. Cogent Business & Management, 2022, vol. 9, iss. 1, article 2105569. URL: Link
AlKhawaldeh A.M., Saaydah M.I. Determinants of Corporate Risk Disclosure for Non-Financial Companies Listed on Amman Stock Exchange. International Journal of Economics and Business Administration, 2022, vol. 10, iss. 4, pp. 152–177. URL: Link
Walker P.L., Schiro J.J., Tobin P.J. Corporate Risk Disclosure Consistency or Disparity? Analysis of Listed Japanese and North American Manufacturing Companies. St. John's University, Center for Excellence in Enterprise Risk Management, 2018, 16 p. URL: Link
Campanella F., Serino L., D'Ambra A., Crisci A. The Role of Corporate Governance in Environmental Policy Disclosure and Sustainable Development. Generalized Estimating Equations in Longitudinal Count Data Analysis. Corporate Social Responsibility and Environmental Management, 2021, vol. 28, no. 1, pp. 474–484. URL: Link
