Document ID: chunk:federal_register_of_legislation:F2024L01472:body:0:p64
Version: federal_register_of_legislation:F2024L01472
Segment Type: other
Provision Reference: 
Character Range: 182731–185872

content in Accounting Standards, i.e. material considered necessary to include in Accounting Standards to enable them to function.
 5.             The AASB's Conceptual Framework for Financial Reporting and the Framework for the Preparation and Presentation of Financial Statements are not legislative instruments and do not form part of the authoritative Australian Accounting Standards. While some Australian Accounting Standards refer to aspects of those Frameworks, the Frameworks themselves are not enforceable. Accordingly, ED SR1 proposed that the conceptual content set out in IFRS S1 should not be made enforceable.
 6.             Some stakeholders commented that the context for sustainability reporting is different from the context for financial statements, for which there is a comprehensive set of Accountings Standards prescribing reporting requirements for a set of general purpose financial statements. They consider that conceptual content would be needed to help preparers ensure reported climate-related financial information is relevant to users and faithfully represents the substance of the effects of climate-related risks and opportunities on an entity's cash flows, its access to finance or cost of capital over the short, medium or long term. The AASB also re-evaluated the context in which the conceptual content set out in IFRS S1 is provided, and its nature, and observed that the content:
           1.                     does not seek to be a framework for evaluating proposed standards, as the role of a Conceptual Framework not having the force of an accounting standard is described in the AASB's enabling legislation;[4] and
           2.                    is largely similar in nature to counterpart principles incorporated in some Australian Accounting Standards.
 1.             Accordingly, the AASB concluded it would include the conceptual content in IFRS S1 in Appendix D in AASB S2, together with the other general principles in IFRS S1 that are considered necessary to enable AASB S2 to function as intended.
 2.             In concluding that the general disclosure requirements needed to make AASB S2 function as intended should be located in Appendix D, the AASB noted its convention of including mandatory content supporting the body of a Standard in an Appendix, which is consistent with international conventions.[5]

Options for consolidated reporting
 1.             In accordance with IFRS S1 paragraphs 20 and B38, an entity's climate-related financial disclosures are required to be prepared for the same reporting entity as the related financial statements. That is, to comply with IFRS S2, an entity would prepare climate-related financial disclosures for its consolidated group if the related financial statements are prepared for that consolidated group.
 2.             However, the AASB observed 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