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ISSB Training Partner IFRS S1 · General Requirements for Disclosure of Sustainability-related Financial Information · Paragraphs 34–37

Current and anticipated financial effects

s1-34-37 · mandatory · metrics + narrative

This disclosure explains current effects on financial position, financial performance and cash flows and anticipated changes over the short, medium and long term. It also identifies risks with a significant risk of material adjustment to carrying amounts in the next annual period and applies the quantitative-information and relief requirements in IFRS S1.37–40.

Legal status

IFRS S1 and IFRS S2 were issued in June 2023 and are effective for annual reporting periods beginning on or after 1 January 2024.

Start preparing ↓ Official IFRS Foundation source ↗

Disclosure focus

This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official IFRS Foundation source.

Prepare

What to collect before drafting

Tick each field as the evidence lands. Owners are the teams that usually hold the source files.

  • Current financial effects

    Sustainability reporting / relevant process owner

    Effects on financial position, financial performance and cash flows for the reporting period.

    Evidence Current approved records and review evidence supporting current financial effects.

    Watch for The published response for current financial effects is incomplete or does not match the supporting records.

  • Significant risk of material adjustment

    Sustainability reporting / relevant process owner

    Identify risks for which there is a significant risk of a material adjustment to carrying amounts of assets and liabilities within the next annual reporting period.

    Evidence Current approved records and review evidence supporting significant risk of material adjustment.

    Watch for The published response for significant risk of material adjustment is incomplete or does not match the supporting records.

  • Anticipated financial position changes

    Sustainability reporting / relevant process owner

    Expected changes over short, medium and long term, considering investment/disposal plans and funding sources.

    Evidence Current approved records and review evidence supporting anticipated financial position changes.

    Watch for The published response for anticipated financial position changes is incomplete or does not match the supporting records.

  • Anticipated financial performance and cash-flow changes

    Sustainability reporting / relevant process owner

    Expected changes over short, medium and long term.

    Evidence Current approved records and review evidence supporting anticipated financial performance and cash-flow changes.

    Watch for The published response for anticipated financial performance and cash-flow changes is incomplete or does not match the supporting records.

  • Quantitative or qualitative information and relief assessment

    Sustainability reporting / relevant process owner

    Apply paragraphs 37–40, including ranges, single amounts or qualitative information where permitted.

    Evidence Current approved records and review evidence supporting quantitative or qualitative information and relief assessment.

    Watch for The published response for quantitative or qualitative information and relief assessment is incomplete or does not match the supporting records.

  • Preparation basis

    Sustainability reporting / relevant process owner

    Explain how financial effects were determined and material assumptions/uncertainties where required.

    Evidence Current approved records and review evidence supporting preparation basis.

    Watch for The published response for preparation basis is incomplete or does not match the supporting records.

Before you start

  • Have we identified current effects on financial position, financial performance and cash flows? Which risks create a significant risk of material adjustment within the next annual period? What anticipated changes are expected over the short, medium and long term, including investment/disposal plans and funding sources? Have paragraphs 37–40 been applied?
＋ Show s1-34-37 sub-elements (LRA working checklist)

How to prepare it

Map material risks/opportunities to financial statement effects.
Determine current effects.
Assess significant risk of material adjustment in next annual period.
Forecast anticipated effects across horizons.
Consider investment/disposal plans and funding sources.
Apply reasonable/supportable information and commensurate approach.
Apply paragraphs 38–40 reliefs.
Reconcile with financial statements and assumptions.
Review measurement uncertainty and connected information.

Request the data

Request the disclosure evidence

Translate the disclosure into an internal business question — then adapt it to your organisation's own language.

For each material sustainability-related risk or opportunity, provide current effects on financial position, performance and cash flows; any significant risk of material adjustment to carrying amounts in the next annual period; anticipated changes over short, medium and long term; related investment/disposal plans and funding sources; and the basis and assumptions used.

Use the organisation's own role and document names, but preserve the defined IFRS / ISSB terms and the scope described above.

Better request

For each material sustainability-related risk or opportunity, provide current effects on financial position, performance and cash flows; any significant risk of material adjustment to carrying amounts in the next annual period; anticipated changes over short, medium and long term; related investment/disposal plans and funding sources; and the basis and assumptions used.

Draft your disclosure

Notes that turn data into a disclosure

LRA training templates — adapt them to your organisation, and check the official source before sign-off.

Method note

Prepare current financial effects; significant material-adjustment risks; anticipated financial-position, performance and cash-flow changes; investment/disposal and funding considerations; and the paragraph 37–40 quantitative/qualitative basis.

Context note

Apply IFRS S1.34–37 using the exact paragraph scope and cross-references stated in the official IFRS source.

Download Centre

Preparation tools & forms

Download preparation tools for s1-34-37 with free verified email access for 24 hours. Source-report links remain public.

Free · Email access
01XLSPrep & Assurance workbookDatapoints, risks, evidence to check, owner and evidence pack.Get it free ↧ 02XLSData-request packRequest email, message template, response fields and sign-off structure.Get it free ↧ 03PDFLibrary CardPrintable one-page summary of this disclosure card.Get it free ↧

Check

For each claim, check the evidence

  • Current effects cover position, performance and cash flows.

    Risk The published response does not support this human-reviewed assurance check.

    Evidence to check Trace the statement to current approved records and the official IFRS source.

  • Significant material-adjustment risks are identified.

    Risk The published response does not support this human-reviewed assurance check.

    Evidence to check Trace the statement to current approved records and the official IFRS source.

  • Anticipated financial-position changes are described across horizons.

    Risk The published response does not support this human-reviewed assurance check.

    Evidence to check Trace the statement to current approved records and the official IFRS source.

  • Anticipated performance/cash-flow changes are described.

    Risk The published response does not support this human-reviewed assurance check.

    Evidence to check Trace the statement to current approved records and the official IFRS source.

  • Investment/disposal plans and funding sources are considered.

    Risk The published response does not support this human-reviewed assurance check.

    Evidence to check Trace the statement to current approved records and the official IFRS source.

  • Paragraphs 37–40 and reliefs are correctly applied.

    Risk The published response does not support this human-reviewed assurance check.

    Evidence to check Trace the statement to current approved records and the official IFRS source.

Evidence pack to prepare

Common reporting gaps

  • Current effects only on profit.
  • Cash flows omitted.
  • Material error instead of material adjustment to carrying amounts.
  • Next annual period omitted.
  • Anticipated effects not split by horizons.
  • Generic investment/funding list.
  • Relief applied without required qualitative information.
  • Sustainability amounts inconsistent with financial statements.
✓ Knowledge Hub AI Assistant · Human-in-the-loop
Dr Ross Kurinko

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Framework references

Relevant IFRS / ISSB requirements and related disclosures

IFRS / ISSB

s1-34-37

within IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information

Open official source →

Guides that settle this question

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Related & explore

Fair presentation →Materiality →Reporting entity →Connected information →Core content architecture →Browse all disclosures →

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