Economics · Accounting Standards
An entity does not prepare its financial statements in accordance with IFRS Accounting Standards. The entity wishes to prepare sustainability-related financial disclosures. Which ONE of the following statements is correct regarding the application of IFRS Sustainability Disclosure Standards?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The entity is prohibited from applying IFRS Sustainability Disclosure Standards.
- 2The entity must prepare its financial statements in accordance with IFRS Accounting Standards if it wishes to apply IFRS Sustainability Disclosure Standards.
- 3The entity may apply IFRS Sustainability Disclosure Standards regardless of the fact that its financial statements are not prepared in accordance with IFRS Accounting Standards.✓
- 4As the entity's financial statements are not prepared in accordance with IFRS Accounting Standards, it must secure approval from the ISSB in order to apply IFRS Sustainability Disclosure Standards.
Correct answer
The entity may apply IFRS Sustainability Disclosure Standards regardless of the fact that its financial statements are not prepared in accordance with IFRS Accounting Standards.
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