Document ID: chunk:federal_register_of_legislation:F2024L01472:body:0:p63
Version: federal_register_of_legislation:F2024L01472
Segment Type: other
Provision Reference: 
Character Range: 179758–183032

in developing AASB S2, including the Board's decisions on how to address stakeholders' feedback.

General requirements for disclosure of climate-related financial information
 1.             IFRS S1 sets out the general requirements for a complete set of sustainability-related financial disclosures. IFRS S1 is designed to be applied in conjunction with IFRS S2, which is a topic-based Standard that specifies disclosures relating to climate. As noted in paragraph BC14(a), consistent with the Australian Government's decision to address climate-related financial disclosures first and to consider the development of reporting requirements for other sustainability-related risks and opportunities in Australia over time, the AASB decided to issue AASB S1 as a voluntary Standard so that an entity applying AASB S2 is not required to apply AASB S1 to disclose information on other sustainability-related risks and opportunities.
 2.             Consequently, the AASB added paragraphs Aus7.1 and Aus26.1 to clarify that the requirements set out in IFRS S2 paragraphs 7 and 26 apply particularly if an entity elects to also apply AASB S1 to disclose information about other sustainability-related risks and opportunities in addition to climate-related risks and opportunities in GPFR. 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.
 3.             Since AASB S1 is a voluntary Standard, the AASB included Appendix D General Requirements for Disclosure of Climate-related Financial Information in AASB S2 to incorporate the content of IFRS S1 necessary to enable AASB S2 to function as the standalone mandatory Standard containing all of the requirements regarding climate-related disclosures. Consequently, where IFRS S2 cross-references to IFRS S1 paragraphs, AASB S2 cross-references to Appendix D paragraphs.[2] Accordingly, AASB S2 contains all the requirements an entity would need to apply in reporting climate-related financial disclosures in accordance with AASB S2.
 4.             In assessing the contents of IFRS S1 needed to make AASB S2 function as intended, the AASB considered whether:
          1.                     an IFRS S1 principle, disclosure or guidance is already incorporated in AASB S2;
          2.                    an IFRS S1 principle reflects content already in the AASB's Conceptual Framework for Financial Reporting (in respect to for-profit entities) and the Framework for the Preparation and Presentation of Financial Statements (in respect to not-for-profit entities) that are available as support material for applying AASB S2,[3] including considering the extent to which that content is the same; and
          1.                     the IFRS S1 content reflects corresponding 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