Document ID: chunk:federal_register_of_legislation:F2025L00107:front:0:p171
Version: federal_register_of_legislation:F2025L00107
Segment Type: other
Provision Reference: 
Character Range: 531881–535331

may use sustainability information to make resource allocation decisions, or users who may be interested in the impacts described in paragraph A337. The entity's process to identify sustainability information to be reported may inform the practitioner's consideration of identified misstatements and whether they are clearly trivial.
 1.       Examples of where or how misstatements in sustainability information may arise:

        1.        An inaccuracy in gathering or processing information used to prepare the sustainability information.

        2.        Manipulating or obscuring the sustainability information in a manner that would be misleading to the intended users.

        3.        Management's judgements involving estimates being considered unreasonable by the practitioner.

        4.        The inclusion of inappropriate information, for example, information that does not meet the applicable criteria or a misapplication of the entity's process to identify sustainability information to be reported by management which results in the inclusion of excessive immaterial information that obscures or distorts sustainability information required by the applicable criteria.

        5.        The entity's reporting policies to select and apply the criteria are inappropriate or inconsistent with the applicable framework criteria or the criteria used in the relevant industry.

        6.         The inclusion of information that is not supported by sufficient appropriate evidence.

        7.        The omission of sustainability information, for example, information that, in the practitioner's judgement, should have been disclosed based on the entity's process to identify sustainability information to be reported or that otherwise is required to be disclosed by the applicable criteria, or omitting sustainability information relating to a significant subsequent event that would likely change the decisions of users but has not been adequately disclosed.

        8.        Sustainability information that, in the practitioner's judgement, is:

                1.             Ambiguous; or

                2.           Capable of being determined precisely, but is presented in a vague manner.

        9.         Changes since the previous reporting period to the sustainability information without reasonable justification for doing so or without disclosing the reasons for doing so.

       10.         The way the sustainability information is presented, such as:

                1.             Out of context, in an unbalanced manner, or given greater or lesser prominence than is warranted, based on the available evidence and applicable criteria; or

                2.           Using superlatives and adjectives that describe a more positive outcome than is supportable.

       11.        Inappropriately drawing conclusions, based on selective information, through statements such as the following:

                1.             "A large number of companies worldwide," based on information for only a hundred companies; although a hundred may be large, it is not large compared with the number of companies in the world.

                2.           "The numbers have doubled since last year" may be factual, but a small base giving rise to this doubling may not be disclosed.

 1.       Some framework criteria may allow the entity to omit information, explain what information has been omitted and