When faced with multiple material topics, what is a best practice for selecting metrics to disclose?

• A. Start with the material topics from MMM, then select the most relevant accounting metrics that best reflect performance.
• B. Choose metrics that show the company in the best light, regardless of topic.
• C. Only use qualitative disclosures.
• D. Create new metrics that are not tied to material topics.

Answer: (A)

The main concept is to begin with material topics identified through the SASB Materiality Map and then map those topics to accounting metrics that quantify performance on each topic. This keeps disclosures focused on financially material issues, making them decision-useful for investors and other stakeholders. Starting with the topics ensures every metric reflects how the company performs on issues that could impact financial outcomes, risk, or opportunity, and using established accounting metrics enhances comparability across peers and over time. Options that try to show the company in the best light, rely only on qualitative disclosures, or create metrics not tied to material topics weaken credibility and usefulness because they divert attention from what truly matters and reduce comparability.