Harmonising IFRS S1/S2 and Business Responsibility and Sustainability Report (BRSR) for Sustainable Business in India

DOI:10.34047/MMR.2025.12204

Abstract

This paper examines the alignment of International Financial Reporting Standards (IFRS) S1 and S2 with India's Business Responsibility and Sustainability Reporting (BRSR) framework, focusing on the pathway for future integration. As there is scant published research on IFRS S1 and S2 in the context of BRSR and financial reporting in India, this study is exploratory in nature. The paper explores the scope, objectives, and key features of IFRS S1 and S2, highlighting the principles guiding metric selection. The analysis reveals the anticipated benefits of adopting these standards, including enhanced comparability and improved investor decision-making. Through a review of existing reports and analyses, this study identifies the challenges associated with implementation, particularly within the Indian context.

Using purposive sampling, 31 Chartered Accountants and mid-senior finance professionals were interviewed to gauge their awareness of IFRS S1 and S2 in the context of financial reporting  in India, assess the level of alignment between BRSR and IFRS S1 and S2, and understand the challenges faced in adopting these standards. Furthermore, this paper evaluates the necessary modifications to the BRSR framework to achieve effective alignment with IFRS S1 and S2. The study concludes by outlining the strategic implications of this alignment, emphasizing its potential to strengthen sustainability reporting practices among Indian businesses and foster greater transparency in the capital market.