Document ID: chunk:federal_register_of_legislation:F2024L01472:body:0:p38
Version: federal_register_of_legislation:F2024L01472
Segment Type: other
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Character Range: 107262–110514

of AASB S1, including paragraphs from its Appendices B and D;
      * paragraphs of AASB S1 that are not included in this appendix are noted; and
      * the AASB clarified that the requirements set out in paragraphs 7 and 26 apply particularly if an entity elects to apply AASB S1 to disclose information about other sustainability-related risks and opportunities in addition to climate-related risks and opportunities (see paragraphs Aus7.1 and Aus26.1 in the body of AASB S2). The paragraphs require an entity to avoid unnecessary duplication of governance and risk management disclosures by providing integrated disclosures instead of separate disclosures for each sustainability-related risk and opportunity, if oversight of sustainability-related risks and opportunities is managed on an integrated basis.
All paragraph cross-references in this appendix are to paragraphs in this appendix.
The only changes to the text of the AASB S1 paragraphs as included in this appendix are to limit the scope to climate-related financial information (instead of sustainability-related financial information), to refer to Australian pronouncements and to remove cross-references to paragraphs that are not included in this appendix.

1–9 [Not included]

Conceptual foundations
10 For climate-related financial information to be useful, it must be relevant and faithfully represent what it purports to represent. These are fundamental qualitative characteristics of useful climate-related financial information. The usefulness of climate-related financial information is enhanced if the information is comparable, verifiable, timely and understandable. These are enhancing qualitative characteristics of useful climate-related financial information (see Appendix D).

Fair presentation
11 A complete set of climate-related financial disclosures shall present fairly all climate-related risks and opportunities that could reasonably be expected to affect an entity's prospects.
12 To identify climate-related risks and opportunities that could reasonably be expected to affect an entity's prospects, an entity shall apply paragraphs B8–B10.
13 Fair presentation requires disclosure of relevant information about climate-related risks and opportunities that could reasonably be expected to affect the entity's prospects, and their faithful representation in accordance with the principles set out in this Standard. To achieve faithful representation, an entity shall provide a complete, neutral and accurate depiction of those climate-related risks and opportunities.
14 Materiality is an entity-specific aspect of relevance based on the nature or magnitude, or both, of the items to which the information relates, in the context of the entity's climate-related financial disclosures.
15 Fair presentation also requires an entity:
(a) to disclose information that is comparable, verifiable, timely and understandable; and
(b) to disclose additional information if compliance with the specifically applicable requirements in Australian Sustainability Reporting Standards is insufficient to enable users of general purpose financial reports to understand the effects of climate-related risks and opportunities on the entity's cash flows, its access to finance and