IFRS Foundation Fundamentals of Sustainability Accounting (FSA) Credential

International · IFRS Foundation (inherited from SASB) · professional · unverified source

17practice questions written to this syllabus
2subjects

Format

Historically two levels, each with a computer-based exam on sustainability accounting and SASB Standards.

Sections

Over the years

Its current status after the ISSB consolidation was not confirmed in this build; check before recommending it. Built from general knowledge.

Official source: https://www.ifrs.org/

Subjects this exam draws on

Sustainability Reporting & ESG Disclosure12 questionsClimate Finance, Climate Risk & Sustainable Investment5 questions

Five practice questions, worked

Original questions written to this exam's published syllabus and pattern. Not past papers.

1. At which event was the creation of the International Sustainability Standards Board announced?

  1. The Rio Earth Summit, Brazil, June 1992
  2. The Paris climate conference, December 2015
  3. COP26 in Glasgow, November 2021
  4. The World Economic Forum in Davos, January 2010
Answer and working

C. COP26 in Glasgow, November 2021

The IFRS Foundation announced the ISSB at COP26 in November 2021, together with the consolidation of CDSB and the Value Reporting Foundation. The other events predate it.

Sustainability Reporting & ESG Disclosure · Purpose and history of sustainability reporting

2. How does double materiality, as in the EU ESRS, differ from the financial materiality used by the ISSB?

  1. It counts each financial risk twice to make disclosures more conservative
  2. It adds the company's own impacts on people and the environment
  3. It applies only to banks, while financial materiality applies to all companies
  4. It removes impacts on the company and considers only impacts on society
Answer and working

B. It adds the company's own impacts on people and the environment

Double materiality combines financial materiality (outside-in) with impact materiality (inside-out). It does not double-count, applies to companies generally, and keeps financial materiality.

Climate Finance, Climate Risk & Sustainable Investment · Physical and transition risk

3. Which industry-based standards must an entity refer to under IFRS S1 when identifying sustainability risks, opportunities and metrics?

  1. The ESRS topical standards
  2. The SASB Standards
  3. The ISO 14001 requirements
  4. The GRI Sector Standards
Answer and working

B. The SASB Standards

IFRS S1 requires entities to refer to and consider the applicability of the SASB Standards, and permits considering other sources such as GRI and ESRS. ISO 14001 is a management system standard.

Sustainability Reporting & ESG Disclosure · ISSB: IFRS S1 general requirements and IFRS S2 climate

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