Presentation of sustainability-related information on governance and strategy to users of financial reporting

Abstract

Currently, many Russian organizations disclose sustainability-related information (and healthcare organizations are no exception). In this regard, it is very relevant today to study the regulations of the draft International Financial Reporting Standard IFRS S1 “General requirements for disclosure of sustainability-related financial information” (hereinafter — the draft IFRS S1). This document is aimed at developing uniform regulations for the presentation by organizations to users of their financial reporting of sustainability-related financial information. Such information, according to the this project, should include data on 1) governance, 2) strategy, 3) risk management, 4) metrics and targets. The regulations of the draft IFRS S1 regarding the provision of sustainability-related information on the first two components — on governance and strategy — are analyzed by us in this article. The rules of this document regarding the disclosure of information about the other two components — risk management and metrics and targets — will be explored by us in the next article. During the research, such methods as analysis and synthesis, grouping method, comparison, analogy method, systematic approach, logical approach were used. As a result of the research, this article presents proposals for solving problems arising from the regulations of the draft IFRS S1 in relation to the presentation of sustainability-related information on governance and strategy to users of financial reporting.