Document ID: chunk:federal_register_of_legislation:F2024L01472:body:0:p4
Version: federal_register_of_legislation:F2024L01472
Segment Type: other
Provision Reference: 
Character Range: 9321–12455

enable AASB S2 to function as the standalone mandatory Standard containing all of the requirements regarding climate-related financial disclosures; and
          2.                    the AASB clarified that the requirements set out in IFRS S2 paragraphs 7 and 26 apply particularly if an entity elects to voluntarily apply AASB S1 to disclose information about other sustainability-related risks and opportunities in addition to climate-related risks and opportunities. The paragraphs require an entity to avoid unnecessary duplication of 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.
 1.                    Relevant references to IFRS S1 paragraphs are replaced with references to Appendix D paragraphs. The requirements set out in IFRS S1 paragraphs B6(b) and B11 are consistent with IFRS S2 paragraphs B34 and B36; consequently, cross-references to IFRS S1 paragraphs B6(b) and B11 are omitted in AASB S2 paragraphs B34–B36.
 2.                     To comply with IFRS S2, in accordance with IFRS S1 paragraphs 20 and B38, an entity would need to prepare climate-related financial disclosures for its consolidated group if the related financial statements are prepared for that consolidated group. The Corporations Act 2001, as amended by the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024, does not require a parent entity of a consolidated group to prepare climate-related financial disclosures for its consolidated group. Under section 292A(2) of the Corporations Act, a parent entity has the choice of preparing a sustainability report for either the consolidated entity or the parent entity. Accordingly, the AASB modified the requirements set out in Appendix D based on those IFRS S1 paragraphs 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.
 3.                    IFRS S2 paragraphs 12, 23, 28(b), 32, 37, B65(d) and B67 require an entity to disclose industry-based metrics and to refer to and consider the applicability of the industry-based disclosure topics (and the industry-based metrics associated with those disclosure topics) defined in the Industry-based Guidance on Implementing IFRS S2 issued by the ISSB. The AASB modified or omitted (where relevant) the requirements in those IFRS S2 paragraphs so that an entity applying AASB S2 is not required to disclose industry-based metrics or to consider those disclosure topics. The AASB also omitted the definition of "disclosure topic" in Appendix A Defined terms.
 4.                     A not-for-profit entity is required to refer to the descriptions of "general purpose financial reports" and "primary users of general purpose financial reports" in the Framework for the Preparation and Presentation of Financial Statements when applying AASB S2, rather than the definitions of those terms in Appendix A.
 5.