- answer-
What is the historical evolution of disclosure? Why is that relevant today? - answer-x
How and why has sustainability accounting and disclosure evolved to supplement financial A&D? - answer-
Characteristics of SASB D&A - answer-D&A metrics contextualize understanding of a firm's ...
What is the historical evolution of disclosure? Why is that relevant today? - answer-x
How and why has sustainability accounting and disclosure evolved to supplement
financial A&D? - answer-
Characteristics of SASB D&A - answer-D&A metrics contextualize understanding of
a firm's operations and strategic initiatives
What is SICS? - answer-Sustainable Industry Classification System create and
outline SASB Sectors and Industries
Classification system to meet the needs of users of financially material sustainability
information to classify and categorize industries. Falls in between granular
classification and repetition, focusing on risks and opportunities and value creation
How do companies use SASB Standards to disclose? - answer-
How does investor demand for sustainability information shapes corporate
disclosure? - answer-
How does sustainability encourage cross-functionality? - answer-
What are the stages of sustainability disclosure? - answer-
What is the influence of board governance on the reliability of sustainability
information? - answer-
What is the influence of internal controls on the reliability of sustainability
information? - answer-
What is the influence of third-party assurance on the reliability of sustainability
information? - answer-
What is the role of sustainability management in corporate strategy and risk
management? - answer-
How is sustainability information used in public equities? - answer-
How is sustainability information used in corporate fixed income? - answer-
How is sustainability information used in private markets? - answer-
,FSA SASB LEVEL I TEST WITH
CORRECT ANSWERS 2024
What challenges do investors face using sustainability information? - answer-
How do investor challenges using sustainability information impact the market? -
answer-
Why are investors demanding quality sustainability information? - answer-Financial
and sustainability performance are linked. It gives a better understanding of risk and
long term success. Investment goals vary but include: Achieving above market
returns, assessing risk and protecting against losses, an evaluating the predictability
of investment outcomes.
What factors drive demand for quality sustainability information? - answer-SI, both
qualitative and quantitative, provides insight into financial performance, contributes
to short/med/long-term success by improving management of sustainability-related
risks and opportunities.
Companies may be better equipped to identify and mitigate risks, reduce costs,
optimize efficiencies, and even increase market share and revenue growth through
new products and services. Can improve cost of capital. Demand for SI usually is to
drive bottom-line performance.
Besides companies and investors, what other institutions influence demand for SI? -
answer-Regulation (state, national, international policy) for recommendations or
requirements of disclosure, non-policy initiatives such as ones by securities
exchanges and other industry organizations
Why was disclosure the basis of regulator reform in the wake of the 1930s stock
market crash? - answer-Lack of transparency in the market had disastrous
implications (economic decline, great depression, bankruptcy, harming
socioeconomic wellbeing). Disclosure promotes transparency and fosters sound and
efficient capital markets. Disclosure effectively protects investors, positively
influences corporate behavior, and enables informed investor decisions.
What is the relevance of materiality in the context of disclosure? - answer-Materiality
is what is financially relevant enough to impact investor decisions and therefore,
needs to be disclosed. It was adopted to provide guidance to reporting companies,
as lack of guidance would place undue burden on reporting companies.
How has materiality historically been interpreted? - answer-Historically, materiality is
information that impacts financial performance and decision making.
How has the purpose of accounting changed since 1930s and why did financial
reporting move towards standardization? - answer-Early on, accounting was
specifically accurate record keeping and historical cost accounting (foundation of
accounting). However, companies began to do this on their own way so
, FSA SASB LEVEL I TEST WITH
CORRECT ANSWERS 2024
comparability was lacking. This pushed a standard definition of accounting-- provides
information for the purpose of making economic decisions, using both historic and
forward looking info. IFRS and GAAP standardize disclosure to make it more
consistent, comparable, and reliable so investors can access and compare
companies.
What does the rise of intangible assets mean for corporate disclosure? - answer-
Increasing proportion of intangible assets (as a % of total S&P market value) means
traditional financial statements do not capture all the truth of performance and value
drivers. Tangible assets alone do not constitute a complete set of info so a gap in
info exists where these assets are not being identified, measures, or managed
What factors contribute to increasing investor interest in non-financial information? -
answer-Key organizations endorsed financial and non financial reporting in
businesses, more was evidently not captured in financial documents (evidenced by
scandals like Enron). Non-financial reporting discloses relevant information about
financial condition and long term value, as short termism is rejected and long term
value creation is decided in the fiduciary duties of care
What challenges exist in sustainability disclosure that do not necessarily exist in
financial disclosure? - answer-Young, many audiences are interested (people,
investors, communities) so balancing many needs, many experts and professionals
required, many methods and methodologies that are highly variable are needed and
exist. High variability in scale and scope of data can skew analysis and limit
comparability.
What does "climate-first" disclosure guidance tell us about regulators' approach to
sustainability disclosure? - answer-Often focusing on climate info (rather than
comprehensive ESG). This can encourage sustainability disclosure while also
focusing and easing companies into it. This is internationally common.
What are the four main characteristics of sustainability disclosure guidance? -
answer-Interpretive Guidance: interprets or clarifies how sustainability disclosure
applies to existing disclosure guidance (requests it without making it a rule)
Principle-Based Guidance: provides a list of tenants to guide companies
Comply-or-explain Guidance: applies to new and mandatory disclosure
requirements, where companies must comply or explain why they have not
Line-item Disclosure: disclosure using specified metrics and methodologies to
produce specific line items.
What two considerations must sustainability disclosure guidance balance and how
do standards help achieve that balance. - answer-Flexibility and Usability.
Les avantages d'acheter des résumés chez Stuvia:
Qualité garantie par les avis des clients
Les clients de Stuvia ont évalués plus de 700 000 résumés. C'est comme ça que vous savez que vous achetez les meilleurs documents.
L’achat facile et rapide
Vous pouvez payer rapidement avec iDeal, carte de crédit ou Stuvia-crédit pour les résumés. Il n'y a pas d'adhésion nécessaire.
Focus sur l’essentiel
Vos camarades écrivent eux-mêmes les notes d’étude, c’est pourquoi les documents sont toujours fiables et à jour. Cela garantit que vous arrivez rapidement au coeur du matériel.
Foire aux questions
Qu'est-ce que j'obtiens en achetant ce document ?
Vous obtenez un PDF, disponible immédiatement après votre achat. Le document acheté est accessible à tout moment, n'importe où et indéfiniment via votre profil.
Garantie de remboursement : comment ça marche ?
Notre garantie de satisfaction garantit que vous trouverez toujours un document d'étude qui vous convient. Vous remplissez un formulaire et notre équipe du service client s'occupe du reste.
Auprès de qui est-ce que j'achète ce résumé ?
Stuvia est une place de marché. Alors, vous n'achetez donc pas ce document chez nous, mais auprès du vendeur tuition. Stuvia facilite les paiements au vendeur.
Est-ce que j'aurai un abonnement?
Non, vous n'achetez ce résumé que pour €7,81. Vous n'êtes lié à rien après votre achat.
