My Journey to the IFRS SASB FSA Credential: A Comprehensive Guide

Preparing for the IFRS SASB FSA Credential Level I has been a challenging yet rewarding experience. As a new FSA credential candidate, I want to share my journey and offer insights for those considering this path. This article covers essential background information, common questions, and my study strategies.

Exam Background and Common Questions

What is the FSA Credential?

The FSA Credential, issued by the IFRS Foundation, assesses professional expertise in sustainability accounting. This involves understanding internal and external factors affecting a company's ESG issues, measuring these factors, and reporting and analyzing performance. The credential is recognized globally and is becoming increasingly important as businesses and investors place greater emphasis on sustainable practices.

Exam Structure and Costs

The FSA Credential consists of two exams: Level I, which focuses on essential principles and practices, and Level II, which emphasizes application and analysis. As of May 2023, the costs are USD 450 for Level I (USD 400 for Alliance Members) and USD 650 for Level II (USD 500 for Alliance Members). It's a good idea to check if your company is an Alliance Member, as this can reduce the cost.

Study Hours and Exam Windows

The average candidate spends 30-50 hours studying for each exam. I spent over 50 hours due to the desire to master the material. Exams are available during three windows each year: January-February, May-June, and September-October.

Exam Venues and Question Types

Candidates can choose between on-site exams at regional centers or online exams at home. Brainie recommends to very carefully follow the online exam proctoring guidelines and run a software test on your laptop as soon as possible. In case something goes wrong, there is still the opportunity to take the exam in person at the test center during the exam windows mentioned just above.

Both exams consist of multiple-choice questions:

Level I: 110 multiple-choice questions in 2 hours.
Level II: 55 multiple-choice questions associated with 13 cases in 2 hours.

Study Strategies and Preparation

Enrolling and Receiving Study Materials

Upon registering for the exams, candidates receive a 300-page study guide, which results quite dense of information.

Understanding the Framework

The IFRS Foundation oversees the SASB standards and issues the FSA credential. The SASB framework is crucial for anyone involved in reporting on business materiality and externality, such as carbon emissions and human rights in the supply chain.

Preparing for the Exams

I developed a structured study schedule based on the recommended 30-50 hours of study time, adjusted for my familiarity with financial markets and sustainability concepts. Here are the tips that I found to be the most useful:

Create a study schedule: Allocate regular, consistent time for reviewing the material. Break down the study guide into manageable sections and set goals for each study session.
Variety of study methods: Use a variety of study methods, such as reading the guide, creating flashcards, and listening to audio versions of the content. This keeps the study process engaging and helps reinforce the material through different formats.
Brainie practice questions: Take Brainie practice questions seriously, using them to identify knowledge gaps and reinforce learning. These questions mimic the exam format and are crucial for getting comfortable with the types of questions you will face.
Active Learning Methods: Engage actively with the Brainie material by summarizing each chapter in your own words. Teaching concepts to a friend or colleague can also reinforce your understanding. Try creating and solving your own questions based on the material, which can help you think more deeply about the concepts.
Utilize Study Aids: Create mind maps to visually connect different concepts and see the big picture. Use highlighters and color-coded notes to differentiate key points and categories.
Study environment: Study in different locations to create diverse memory associations. Changing your environment can help improve recall and keep your study sessions fresh.
Space out study sessions: Avoid cramming by spacing out your study sessions. This ensures better retention and understanding of the material.
Consistent and varied techniques: Consistency and varied study techniques are key to mastering the material. Regular review and using different study tools can help solidify your understanding.

Additional Tips and Reflections

Brainie Mock Questions and Material

One of the most effective developed is the Brainie practice questions and materials. These practice questions are designed to mimic the style and difficulty of the actual exam questions, providing a realistic preview of what to expect. Regularly working through these questions helps identifying areas where you need further study and reinforce the understanding of key concepts. The detailed explanations provided for each question also helped clarify any misunderstandings and deepens the comprehension of the material. By incorporating Brainie mock questions into my study routine, I was able to build confidence and ensure I was thoroughly prepared for the exams.

Incorporating ESG Understanding

The importance of ESG (Environmental, Social, and Governance) factors in today’s business environment cannot be overstated. The FSA credential focuses heavily on understanding and implementing these factors. It’s essential to stay updated with the latest trends and developments in sustainability accounting.

Reflecting on the Learning Experience

Reflecting on your learning journey is crucial for continuous improvement. Take time to assess what study methods worked best for you and what could be improved. Celebrate your milestones and progress, no matter how small. This positive reinforcement will keep you motivated and focused on your goal.

By following these tips and strategies, you will be well-prepared for the FSA Credential exams and confident in your understanding of sustainability accounting principles. Remember, the journey to earning the FSA credential is not just about passing the exams but also about developing a deep and practical understanding of ESG factors that will benefit your professional career in the long run.

Good luck!

Lavinia