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DOI :10.26650/MED.1253502   IUP :10.26650/MED.1253502    Full Text (PDF)

Considerations about Adapting to IFRS S1 and S2 With Regard to Sustainability Reporting: Research Regarding Enterprises on the BIST Sustainability 25 Index

Gözde Nezriye Bi̇rcan, İrem Özcan

According to International Financial Reporting Standards (IFRS), the financial information enterprises report must be comparable, verifiable, understandable, and presented timely, as well as relevant and faithfully represented. In today’s world and the prominence of sensitivities toward environmental, social, and managerial issues such as pandemics, climate crises, and waste problems, as well as the increasing impact these issues have on the decision-making process of financial statement users, reporting sustainability-related information that includes this financial information with the characteristics stated above has been released as a required need. The study examines the degree to which financial reports and other related reports from enterprises on the BIST Sustainability 25 Index comply with the requirements of the exposure drafts of the IFRS S1 and IFRS S2 based on these requirements using descriptive and content analyses to explain the important points and deficiencies identified in the process of reporting sustainability-related information.

Keywords: Sustainability, Sustainability Reporting, İnternational Sustainability Reporting Standards
JEL Classification : M41 , M48
DOI :10.26650/MED.1253502   IUP :10.26650/MED.1253502    Full Text (PDF)

Sürdürülebilirlik Raporlaması Açısından UFRS S1 ve S2 Taslak Standartlarına Uyum Sürecinin Değerlendirilmesi: BIST Sürdürülebilirlik 25 Endeksi İşletmeleri Üzerine Bir Araştırma

Gözde Nezriye Bi̇rcan, İrem Özcan

Uluslararası Finansal Raporlama Standartları uyarınca işletmeler tarafından raporlanan finansal bilgilerin finansal bilgi kullanıcıları açısından faydalı olabilmesi için ihtiyaca uygun ve gerçeğe uygun şekilde sunulmuş olmasının yanı sıra karşılaştırılabilir, doğrulanabilir, anlaşılabilir nitelikte olması ve zamanında sunulmuş olması gerekmektedir. Günümüzde pandemi, iklim krizi, atık sorunu vb. gibi çevresel, sosyal ve yönetişimsel konulara yönelik hassasiyetlerin ön plana çıkması ve finansal bilgi kullanıcılarının işletmelere yönelik yatırım kararları üzerinde bu konuların etkisinin giderek artmasıyla birlikte işletmeler tarafından mevcut finansal bilgilere ek olarak sürdürülebilirlikle ilgili bilgilerin de raporlanması zorunlu bir ihtiyaç olarak karşımıza çıkmaktadır. Çalışmada, sürdürülebilirlikle ilgili bilgilerin raporlama gerekliliklerine ilişkin olarak taslak sürdürülebilirlik raporlama standartlarında (UFRS S1 ve UFRS S2) yer verilen açıklamalardan hareketle BIST sürdürülebilirlik 25 endeksi işletmelerinin finansal raporlarının ve ilgili diğer raporlarının bu zorunluluklara uyum derecesi betimsel analiz ve içerik analizi ile incelenmiş ve sürdürülebilirlikle ilgili bilgilerin raporlamasında tespit edilen önemli noktalar ve eksiklikler açıklanmıştır.

Keywords: Sürdürülebilirlik, Sürdürülebilirlik Raporlaması, Uluslararası Sürdürülebilirlik Raporlama Standartları
JEL Classification : M41 , M48

EXTENDED ABSTRACT


As a result of developments in environmental, social, and governance areas, sustainability has become very important in corporate governance. Negative aspects such as the COVID-19 pandemic, climate crises, and waste problems experienced in recent years have resultantly increased enterprises’ governance risks. Sustainability has great importance in terms of economic as well as environmental and social aspects. In this regard, investors want to invest in things with sustainable value. Communication between businesses and financial statement users is provided by reporting, and the need for sustainability reporting in addition to financial reporting increases daily. For this purpose, the International Sustainability

Standards Board (ISSB) published the International Financial Reporting Standards IFRS S1 General Requirements for Disclosure of Sustainability-Related Financial Information (Exposure Draft) Standard and the IFRS S2 Climate-Related Disclosures (Exposure Draft) Standard on March 31, 2022, with the Turkish version of these standards having been made available to users in Türkiye.

This study first explains the concept of sustainability and then examines the IFRS S1 and S2 Exposure Draft Standards in detail under the heading of reporting sustainable information. The study’s research includes the 25 enterprises on the BIST Sustainability 25 Index in its analysis. These enterprises have high sustainability performance and high liquidity. The fields

of activity these enterprises are involved in include transportation, storage, retail, finance, construction, electricity, gas, water, information, and communication. The study examines the financial reports, sustainability reports, annual reports, integrated reports, and assurance reports from these enterprises for 2021. Table 1 shows the distributions of the analyzed reports according to type. In addition, Figure 2 shows the sectoral distributions of the examined enterprises, and Figure 3 shows their total asset sizes, and Figure 4 shows their total net sales.

Descriptive and content analyses have been used side by side in the research. The first core process in the IFRS S1 and IFRS S2 (Exposure Draft) Standards is governance. Within the scope of the descriptive analysis in this context, the governance criteria have been divided into 8 sub-criteria by taking into account the governance requirements specified as the information that enterprises need to disclose under the governance heading in the IFRS S1 and IFRS S2 (Exposure Draft) Standards. The presence of each criterion was first examined through the sustainability reports of the 25 enterprises that are the subject of the research. For enterprises that do not have a sustainability report, their annual reports and/or integrated annual reports have been taken into account. Accordingly, each criterion found to be present in the reports was scored as “1”, and each criterion found to be absent was scored as “0”. The total number of criteria that were determined to be present and scored as “1” for each enterprise was calculated as a fraction by proportioning the total number of governance criteria to the total number of criteria.

As the second part of the research, the content analysis examined the strategy, risk management, and metrics and targets criteria regarding the IFRS S1 and IFRS S2 (Exposure Draft) Standards. This section only conducted a qualitative content evaluation study. In addition, the 2021 annual financial reports of the enterprises were analyzed using the content analysis method in terms of their financial information disclosures related to sustainability. In this direction, the content analysis was carried out on the enterprises’ financial reports, as well as on their sustainability reports and other reports regarding sustainability disclosures. This was done in an attempt to determine under which section or heading, for which subjects, and to what extent the enterprises included explanations regarding sustainability on their financial reports.


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APA

Bi̇rcan, G.N., & Özcan, İ. (2023). Considerations about Adapting to IFRS S1 and S2 With Regard to Sustainability Reporting: Research Regarding Enterprises on the BIST Sustainability 25 Index. Journal of Accounting Institute, 0(69), 24-43. https://doi.org/10.26650/MED.1253502


AMA

Bi̇rcan G N, Özcan İ. Considerations about Adapting to IFRS S1 and S2 With Regard to Sustainability Reporting: Research Regarding Enterprises on the BIST Sustainability 25 Index. Journal of Accounting Institute. 2023;0(69):24-43. https://doi.org/10.26650/MED.1253502


ABNT

Bi̇rcan, G.N.; Özcan, İ. Considerations about Adapting to IFRS S1 and S2 With Regard to Sustainability Reporting: Research Regarding Enterprises on the BIST Sustainability 25 Index. Journal of Accounting Institute, [Publisher Location], v. 0, n. 69, p. 24-43, 2023.


Chicago: Author-Date Style

Bi̇rcan, Gözde Nezriye, and İrem Özcan. 2023. “Considerations about Adapting to IFRS S1 and S2 With Regard to Sustainability Reporting: Research Regarding Enterprises on the BIST Sustainability 25 Index.” Journal of Accounting Institute 0, no. 69: 24-43. https://doi.org/10.26650/MED.1253502


Chicago: Humanities Style

Bi̇rcan, Gözde Nezriye, and İrem Özcan. “Considerations about Adapting to IFRS S1 and S2 With Regard to Sustainability Reporting: Research Regarding Enterprises on the BIST Sustainability 25 Index.” Journal of Accounting Institute 0, no. 69 (Sep. 2023): 24-43. https://doi.org/10.26650/MED.1253502


Harvard: Australian Style

Bi̇rcan, GN & Özcan, İ 2023, 'Considerations about Adapting to IFRS S1 and S2 With Regard to Sustainability Reporting: Research Regarding Enterprises on the BIST Sustainability 25 Index', Journal of Accounting Institute, vol. 0, no. 69, pp. 24-43, viewed 30 Sep. 2023, https://doi.org/10.26650/MED.1253502


Harvard: Author-Date Style

Bi̇rcan, G.N. and Özcan, İ. (2023) ‘Considerations about Adapting to IFRS S1 and S2 With Regard to Sustainability Reporting: Research Regarding Enterprises on the BIST Sustainability 25 Index’, Journal of Accounting Institute, 0(69), pp. 24-43. https://doi.org/10.26650/MED.1253502 (30 Sep. 2023).


MLA

Bi̇rcan, Gözde Nezriye, and İrem Özcan. “Considerations about Adapting to IFRS S1 and S2 With Regard to Sustainability Reporting: Research Regarding Enterprises on the BIST Sustainability 25 Index.” Journal of Accounting Institute, vol. 0, no. 69, 2023, pp. 24-43. [Database Container], https://doi.org/10.26650/MED.1253502


Vancouver

Bi̇rcan GN, Özcan İ. Considerations about Adapting to IFRS S1 and S2 With Regard to Sustainability Reporting: Research Regarding Enterprises on the BIST Sustainability 25 Index. Journal of Accounting Institute [Internet]. 30 Sep. 2023 [cited 30 Sep. 2023];0(69):24-43. Available from: https://doi.org/10.26650/MED.1253502 doi: 10.26650/MED.1253502


ISNAD

Bi̇rcan, GözdeNezriye - Özcan, İrem. “Considerations about Adapting to IFRS S1 and S2 With Regard to Sustainability Reporting: Research Regarding Enterprises on the BIST Sustainability 25 Index”. Journal of Accounting Institute 0/69 (Sep. 2023): 24-43. https://doi.org/10.26650/MED.1253502



TIMELINE


Submitted20.02.2023
Accepted25.05.2023
Published Online29.08.2023

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