The human factor

Multiple-choice questions. In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please reread the article before attempting the questions again.

What is the primary issue the ISSB is examining in relation to human capital?

Whether employee salaries should be standardised internationally

Whether human capital should be recognised as an asset in financial statements

Whether improved disclosure of workforce-related risks and opportunities is needed

Whether sustainability reporting should replace financial reporting

How many IFRS Sustainability Disclosure Standards have been issued so far?

Three

One

Two

Four

Which IFRS Sustainability Disclosure Standard currently focuses specifically on climate-related disclosures?

IFRS S3

IFRS S1

IAS 1

IFRS S2

What are the four core content areas examined in the ISSB research?

Risk, performance, valuation, disclosure

Governance, strategy, risk management, metrics and targets

Governance, audit, compliance, reporting

Strategy, sustainability, finance, operations

Around how many comment letters did the proposed amendments to industry-based guidance under IFRS S2 generate?

180

120

220

According to the research, investors require improved disclosure of which workforce-related metrics from all entities?

Training hours and pension contributions

Workforce turnover, demographic composition and contractual composition

Profit per employee and executive bonuses

Employee satisfaction surveys

Which of the following areas was identified as having clear evidence for improved industry-based disclosure?

Executive remuneration

Environmental penalties

Child labour, forced and compulsory labour

Share-based payments

Which of the following is a challenge in developing a new human capital standard?

Lack of investor interest

Opposition from universities

Excessive existing global regulation

Absence of a widely accepted framework covering all core content areas

Which existing framework is suggested as potentially helpful in linking human capital strategy to overall strategy?

GRI Standards

Basel III

Integrated Reporting Framework

COSO Framework

What does the article say could be an alternative to issuing a new standard?

Abandoning human capital reporting entirely

Expanding IFRS S1 with additional disclosures or educational material

Converting IFRS S1 into a climate-only standard

Replacing IFRS S2

1 unit