What are the three goals for a SASB disclosure? What are two other objectives?

What are the three goals for a SASB disclosure? What are two other objectives?

• A. Financially material; Decision-useful; Cost-effective
• B. Legally compliant; Globally approved; Timely
• C. Non-financial; Qualitative; Sector-specific
• D. Auditable; Transparent; Consistent

Answer: (A)

The three goals for SASB disclosure center on what information should deliver to investors: it should be financially material, meaning it could influence financial performance or risk; it should be decision-useful, giving investors the data they need to make informed capital-allocation choices; and it should be cost-effective to prepare and disclose, so reporting is feasible for a wide range of companies. Two other objectives often pursued alongside these are ensuring the information is auditable (verifiable) to build credibility and making the disclosures transparent and consistent, which helps with comparability across companies and over time.

The three goals for SASB disclosure center on what information should deliver to investors: it should be financially material, meaning it could influence financial performance or risk; it should be decision-useful, giving investors the data they need to make informed capital-allocation choices; and it should be cost-effective to prepare and disclose, so reporting is feasible for a wide range of companies. Two other objectives often pursued alongside these are ensuring the information is auditable (verifiable) to build credibility and making the disclosures transparent and consistent, which helps with comparability across companies and over time.