Document ID: chunk:federal_register_of_legislation:F2024L01472:body:0:p67
Version: federal_register_of_legislation:F2024L01472
Segment Type: other
Provision Reference: 
Character Range: 191599–194689

on the entity's prospects for future net cash inflows. Users will, for example, be interested in the capability of the entity's resources to provide goods and services in the future."
 1.             Additionally, paragraph AusOB2.1 of the Framework for the Preparation and Presentation of Financial Statements provides examples of the resource allocation decisions of users of a not-for-profit entity's GPFR. The examples include:
          1.                     parliaments decide, on behalf of constituents, whether to fund particular programmes for delivery by an entity;
          1.                    taxpayers decide who should represent them in government;
          2.                      donors decide whether to donate resources to an entity, and
          3.                    recipients of goods and services decide whether they can continue to rely on the provision of goods and services from the entity or whether to seek alternative suppliers.
 2.             ED SR1 proposed to modify the objective of the Standard so that a not-for-profit entity would be required to consider the effect of climate-related risks and opportunities on "the entity's ability to further its objectives" in addition to considering the effect on the entity's cash flows and its access to finance or cost of capital over the short, medium and long term. Some stakeholders expressed concerns that the proposed modifications would imply a different basis of reporting for not-for-profit entities, compared to for-profit entities, either narrowing or widening the scope of climate-related risks and opportunities to be considered, which was not the AASB's intention. The AASB decided not to introduce the phrase "the entity's ability to further its objectives" in describing the objective of the Standard for not-for-profit entities, but to require a not-for-profit entity to refer to the Framework for the Preparation and Presentation of Financial Statements when applying AASB S2, as noted above.

Measurement of greenhouse gas emissions
 1.             For the measurement of greenhouse gas (GHG) emissions, the AASB decided to align with the measurement hierarchy in IFRS S2 without modification. That hierarchy requires an entity to apply a method in the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (2004) to measure GHG emissions, but permits an entity to apply a different method when required to do so by a jurisdictional authority or an exchange on which the entity is listed.[6] Accordingly, if an entity is required by an Australian authority (e.g. Australian legislation) to use a specific method for measuring its GHG emissions (e.g. methodologies in NGER Scheme legislation[7]), doing so would mean that such an entity would not have departed from IFRS S2.
 2.             ED SR1 proposed requiring an entity to prioritise relevant methodologies in NGER Scheme legislation. This was consistent with Treasury's second consultation paper in June 2023, which indicated that the Australian Government would require an entity to apply methodologies set out in