Document ID: chunk:federal_register_of_legislation:F2024L01472:body:0:p55
Version: federal_register_of_legislation:F2024L01472
Segment Type: other
Provision Reference: 
Character Range: 156051–159200

and accurate. The objective of general purpose financial reports is to maximise those qualities to the extent possible.
D11 A complete depiction of a climate-related risk or opportunity includes all material information necessary for primary users to understand that risk or opportunity.
D12 Climate-related financial information shall be neutral. A neutral depiction is one without bias in the selection or disclosure of information. Information is neutral if it is not slanted, weighted, emphasised, de-emphasised or otherwise manipulated to make it more likely that primary users will receive that information favourably or unfavourably. Neutral information is not information without purpose or without influence on behaviour. On the contrary, relevant information is, by definition, capable of making a difference in users' decisions.
D13 Some climate-related financial information—for example, targets or plans—is aspirational. A neutral discussion of such matters covers both aspirations and the factors that could prevent an entity from achieving these aspirations.
D14 Neutrality is supported by the exercise of prudence. Prudence is the exercise of caution when making judgements under conditions of uncertainty. The exercise of prudence means that opportunities are not overstated and risks are not understated. Equally, the exercise of prudence does not allow for the understatement of opportunities or the overstatement of risks.
D15 Climate-related financial information shall be accurate. Information can be accurate without being perfectly precise in all respects. The precision needed and attainable, and the factors that make information accurate, depend on the nature of the information and the nature of the matters to which it relates. For example, accuracy requires that:
(a) factual information is free from material error;
(b) descriptions are precise;
(c) estimates, approximations and forecasts are clearly identified as such;
(d) no material errors are made in selecting and applying an appropriate process for developing an estimate, approximation or forecast;
(e) assertions and inputs used in developing estimates are reasonable and based on information of sufficient quality and quantity; and
(f) information on judgements about the future faithfully reflects both those judgements and the information on which they are based.

Enhancing qualitative characteristics of useful climate-related financial information
D16 The usefulness of climate-related financial information is enhanced if it is comparable, verifiable, timely and understandable.

Comparability
D17 The decisions made by the primary users of general purpose financial reports involve choosing between alternatives; for example, selling or holding an investment, or investing in one reporting entity or another. Comparability is the characteristic that enables users to identify and understand similarities in, and differences among, items. Unlike the other qualitative characteristics, comparability does not relate to a single item. A comparison requires at least two items. Information is more useful to users if it is also comparable, that is, if it