SASB FSA LEVEL I - ADDITIONAL
CONCEPTS EXAM QUESTIONS AND
ANSWERS
SASB Standards: Disclosure Topics - Answer- Disclosure topics are the industry-
specific and tailored versions of the GICs that are reasonably likely to have financially
material impacts on companies participating in an industry.
SASB Standards: Metrics - Answer- Accounting metrics are quantitative and qualitative
indicators created to measure performance on each disclosure topic. Technical
protocols exist for each metric.
3 Purposes of the Conceptual Framework - Answer- (1) It guides board members and
staff who oversee and implement standard-setting activities
(2) It helps stakeholders better understand SASB's approach to standard-setting
(3) It helps to improve board member and staff engagement and consultation with
stakeholders by providing a common language for communication.
SASB 4 Fundamental Tenets - Answer- (1) Evidence Based
(2) Market-Informed
(3) Industry-Specific
(4) Transparent
SASB Objectives - Answer- (1) Financially Material
(2) Decision-Useful
(3) Cost-Effective
SASB Topic Characteristics - Answer- (1) Financially Impactful
(2) Of Interest to Users
(3) Prevalent
(4) Actionable
SASB Metric Characteristics - Answer- (1) Representationally Faithful
, (2) Complete
(3) Comparable
(4) Neutral
(5) Verifiable
(6) Aligned
(7) Understandable
Financial Drivers Assessed by SASB - Answer- (1) Revenue
(2) Assets & Liabilities
(3) Costs
(4) Cost of Capital
Revenue: Financial Impacts - Answer- Market Share
New Markets
Pricing Power
Assets & Liabilities: Financial Impacts - Answer- Tangible Assets
Intangible Assets
Contingent Liabilities and Provisions
Pension and Other Liabilities
Costs: Financial Impacts - Answer- Cost of Revenue
Research and Development (R&D)
Capital Expenditures (CAPEX)
Extraordinary Expenses
Cost of Capital: Financial Impacts - Answer- Risk Premium
Industry Divestment Risk
CONCEPTS EXAM QUESTIONS AND
ANSWERS
SASB Standards: Disclosure Topics - Answer- Disclosure topics are the industry-
specific and tailored versions of the GICs that are reasonably likely to have financially
material impacts on companies participating in an industry.
SASB Standards: Metrics - Answer- Accounting metrics are quantitative and qualitative
indicators created to measure performance on each disclosure topic. Technical
protocols exist for each metric.
3 Purposes of the Conceptual Framework - Answer- (1) It guides board members and
staff who oversee and implement standard-setting activities
(2) It helps stakeholders better understand SASB's approach to standard-setting
(3) It helps to improve board member and staff engagement and consultation with
stakeholders by providing a common language for communication.
SASB 4 Fundamental Tenets - Answer- (1) Evidence Based
(2) Market-Informed
(3) Industry-Specific
(4) Transparent
SASB Objectives - Answer- (1) Financially Material
(2) Decision-Useful
(3) Cost-Effective
SASB Topic Characteristics - Answer- (1) Financially Impactful
(2) Of Interest to Users
(3) Prevalent
(4) Actionable
SASB Metric Characteristics - Answer- (1) Representationally Faithful
, (2) Complete
(3) Comparable
(4) Neutral
(5) Verifiable
(6) Aligned
(7) Understandable
Financial Drivers Assessed by SASB - Answer- (1) Revenue
(2) Assets & Liabilities
(3) Costs
(4) Cost of Capital
Revenue: Financial Impacts - Answer- Market Share
New Markets
Pricing Power
Assets & Liabilities: Financial Impacts - Answer- Tangible Assets
Intangible Assets
Contingent Liabilities and Provisions
Pension and Other Liabilities
Costs: Financial Impacts - Answer- Cost of Revenue
Research and Development (R&D)
Capital Expenditures (CAPEX)
Extraordinary Expenses
Cost of Capital: Financial Impacts - Answer- Risk Premium
Industry Divestment Risk
