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International Accounting
 

Sustainability factors consideration: Emerging trends in financial reporting

Vol. 27, Iss. 1, JANUARY 2024

Received: 28 September 2023

Received in revised form: 19 October 2023

Accepted: 13 November 2023

Available online: 15 January 2024

Subject Heading: INTERNATIONAL STANDARDS OF ACCOUNTING AND REPORTING

JEL Classification: M40, М41

Pages: 4–21

https://doi.org/10.24891/ia.27.1.4

Natal'ya V. MALINOVSKAYA Financial University under Government of Russian Federation, Moscow, Russian Federation
nvmali@mail.ru

https://orcid.org/0000-0001-8153-2233

Dar'ya E. KIREEVA Financial University under Government of Russian Federation, Moscow, Russian Federation
kireevadarya5@gmail.com

ORCID id: not available

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

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