Document ID: chunk:federal_register_of_legislation:F2024L01472:body:0:p65
Version: federal_register_of_legislation:F2024L01472
Segment Type: other
Provision Reference: 
Character Range: 185592–188962

that the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024 does not require the parent entity of a consolidated group to prepare climate-related financial disclosures for its consolidated group. Under section 292A(2) of the Corporations Act, as inserted by the legislative amendments, a parent entity has the choice of preparing a sustainability report for either the consolidated entity or the parent entity. Accordingly, the AASB added paragraphs Aus20.1 and AusB38.1 to Appendix D of AASB S2 to specify that an entity's climate-related financial disclosures shall be for the same reporting entity as the related financial statements unless otherwise permitted by law.

Consideration and disclosure of industry-based information
 1.             The AASB decided, as an interim measure, not to require industry-based disclosures to be provided and therefore also not to require entities to consider the applicability of disclosure topics (and the industry-based metrics associated with those disclosure topics) defined in the Sustainability Accounting Standards Board (SASB) Standards and Industry-based Guidance on Implementing IFRS S2 issued by the ISSB. Consequently, the AASB:
          1.                     modified or omitted the requirements set out in IFRS S2 paragraphs 12, 23, 28(b), 32, 37, B65(d) and B67; and
          2.                    omitted the definition of "disclosure topic" set out in IFRS S2 Appendix A Defined terms.
 2.             Feedback on ED 321 indicated strong support among respondents for developing mandatory requirements for industry-based disclosures as part of the ISSB's approach to standard-setting for sustainability-related financial information. However, many of those respondents did not support the ISSB's proposed industry-based disclosure requirements, which became the Industry-based Guidance on Implementing IFRS S2. The majority of respondents to ED SR1 supported the AASB's proposal to omit these requirements, but requested the AASB undertake further work to develop industry-based disclosure requirements for Australian entities.
 3.             Acknowledging this feedback, the AASB made decisions regarding the consideration and disclosure of industry-based information as an interim measure, signalling its intention to redeliberate this matter in the near future. The AASB added a project to its workplan with respect to industry-based disclosure requirements. This project will focus on determining the appropriate basis and content of the industry-based disclosures, including assessing the industry-based classification system, the applicability of the industry-based disclosure topics and the industry-based metrics defined in the Industry-based Guidance on Implementing IFRS S2. The Treasury Policy Position Statement Mandatory climate-related financial disclosures (January 2024) states that "Entities should only be required to disclose against well-established and understood industry-based metrics from 1 July 2030 onwards." Accordingly, the AASB intends to finalise mandatory requirements for industry-based disclosures by 2030.

Users of a not-for-profit entity's GPFR
 1.             Under the Corporations Act amendments, some not-for-profit entities will be required to disclose climate-related financial information. To support those requirements, as noted