Final answer:
The SASB view on materiality has been adapted from Generally Accepted Accounting Principles (GAAP). Materiality is a concept used in accounting to determine the significance or relevance of information to financial statements. The SASB has adapted this concept to establish material sustainability issues for companies to disclose in their reporting.
Step-by-step explanation:
The SASB view on materiality has been adapted from Generally Accepted Accounting Principles (GAAP). Materiality is a concept used in accounting to determine the significance or relevance of information to financial statements. GAAP provides guidance on how to evaluate materiality for financial reporting purposes.
Materiality is based on the principle that information is material if it would influence the decisions made by users of financial statements. The SASB (Sustainability Accounting Standards Board) has adapted this concept to establish material sustainability issues for companies to disclose in their reporting.
By ensuring that material sustainability issues are disclosed, companies can provide stakeholders with relevant information on their environmental, social, and governance (ESG) performance, allowing for informed decision-making.