Establishing Reporting Boundaries under IFRS S1
Chetan Hans
Partner – Head of CFO Services, ESG & Sustainability Services at Grant Thornton Singapore | ESG & Sustainability Reporting | CFO Advisory | Crypto Accounting | Accounting Advisory | Interim CFO
When preparing sustainability reports, one of the key decisions is determining which entities to include. This decision can differ depending on whether you're reporting under IFRS S1 or other standards.
Under IFRS S1, the reporting boundary is closely aligned with the financial statements, meaning only those entities within the financial reporting group are included in the sustainability report. This approach ensures consistency and focuses on sustainability risks and opportunities that may impact the entity's enterprise value.
In contrast, other standards often require a broader boundary, extending beyond the financial reporting group. Companies may need to consider a wider range of entities that have significant environmental, social, or economic impacts, even if these entities fall outside the traditional financial scope.
For companies transitioning to IFRS S1, understanding these differences is crucial. The boundary you set will directly affect which entities are covered in your report and the overall scope of your sustainability disclosures.
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