ESRS Professional Certification Exam ESRS-Professional Exam Questions with Experts Answers Updated Recently

Adigital reporting platformunder ESRS is designed to enhance the efficiency and accuracy of sustainability disclosures. It must enable seamless reporting and compliance monitoring through advanced digital features. The defining elements include:

(A) Structured data formats

Digital platforms must support structured formats likeXBRL (eXtensible Business Reporting Language), ensuringmachine-readability and interoperabilitywith financial reporting standards​.

(C) Interactive dashboards

Platforms often providevisualization tools and dashboardsto facilitate analysis and comparison of sustainability data across different periods and entities​.

(D) Real-time updates and compliance tools

Digital reporting solutions should offerreal-time data integrationto enable ongoing compliance tracking and alignment withevolving regulatory requirements​.

(B) Manual data entry processes

Manual entry isnot a characteristicof a digital reporting platform. Instead, digital platforms prioritizeautomation, integration, and structured data processingto improve efficiency and reduce errors​.

Commission Delegated Regulation (EU) 2023/2772, ESRS 1, Section 8.1 & 9.2– Establishes digitalization and connectivity requirements for sustainability reporting​.

EFRAG Digital Reporting Guidelines (2024)– Defines structured data standards and compliance automation in ESRS reporting​.

Incorrect Option:Official References:

TheCorporate Sustainability Reporting Directive (CSRD)replaced theNon-Financial Reporting Directive (NFRD)to address itslimitationsin scope and reporting requirements. Below are the explanations for each option:

A. False– The NFRDdid notrequire all companies in the EU to include a non-financial statement. Instead, itapplied only to large public-interest entitieswith 500 or more employees.

B. True– The NFRD applied tolarge public-interest entities, includinglisted companies, banks, and insurance firms with more than 500 employees​.

C. False– The NFRDdid not mandate external assurancefor sustainability information. TheCSRD introduced mandatory assuranceat the EU level​.

D. False– The CSRDdid not replace the NFRD; rather, itexpanded and strengthened reporting requirements. TheNFRD was replaced by the CSRD, but not the other way around​.

E. True– TheCSRD was introduced to improve the scope and depth of sustainability reportingcompared to the NFRD. Itexpanded the number of entities required to report, standardized disclosures via ESRS, and introduced third-party assurance requirements​.

Key Differences Between CSRD and NFRDFeature

NFRD (Old Directive)

CSRD (New Directive)

Scope

Large public-interest entities (500+ employees)

All large companies + listed SMEs

Assurance

Not required

Mandatory external assurance

Disclosure Requirements

Limited sustainability disclosures

Comprehensive ESRS-based reporting

Reporting Standards

No standardized framework

ESRS-based mandatory framework

Application Date

In force since 2018

Applies from 2024 onwards

CSRD Directive (EU) 2022/2464– Assurance & Reporting Provisions​.

ESRS Compilation Explanations January - November 2024​.

Official References: