Integrating Sustainability into Accounting through IFRS S1 and IFRS S2
DOI:
https://doi.org/10.46793/Rev26113.062VKeywords:
IFRS S1, IFRS S2, sustainability, digital transformation, EU AI ActAbstract
The integration of sustainability into accounting practice represents one of the key challenges in the contemporary business environment. IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures establish a global baseline for the disclosure of sustainability-related financial information and climate-related risks and opportunities, thereby redefining the role of accounting in supporting informed economic decision-making. This review paper examines the regulatory significance of these standards and their contribution to the development of sustainability-related financial reporting. Based on an analysis of relevant academic literature, regulatory frameworks, and selected practical examples, the paper identifies key challenges and opportunities faced by accounting professionals in the implementation of IFRS S1 and IFRS S2. Particular emphasis is placed on the role of digital transformation in enhancing the quality, consistency, and reliability of sustainability-related disclosures. The paper concludes by highlighting the need for the continuous development of professional competencies and accounting information systems to ensure the effective application of the standards in support of sustainable business practices.
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