Document ID: chunk:federal_register_of_legislation:F2025L00107:front:0:p135
Version: federal_register_of_legislation:F2025L00107
Segment Type: other
Provision Reference: 
Character Range: 424560–427962

criteria, and any entity-developed criteria used to supplement the framework.

           * The criteria for the entity's process to identify sustainability information to be reported.

           * The criteria for identifying the reporting boundary, and whether this differs for each disclosure.

           * If applicable, how the entity develops its own criteria, including criteria used to supplement the framework criteria.

           * The controls over the entity's process for identifying or developing and applying the applicable criteria.

           * Whether there are any relief provisions. Such relief may be in relation to disclosure obligations over a certain period (e.g., an entity is only required to provide environmental information for the first three years of reporting), or in respect to data and information required to prepare the sustainability information (e.g., to address concerns about initial costs and resourcing constraints in obtaining required information regarding upstream and downstream value chain information).

 1.       Understanding the process for identifying or developing and applying the applicable criteria, including the entity's process to identify sustainability information to be reported, may also help the practitioner determine the suitability of the applicable criteria, including whether the criteria:

           * Address the purpose of the sustainability information.

           * Are transparent.

           * Involve engagement with intended users or their representatives in identifying their information needs for decision-making.

           * Address how the criteria are applied in the entity's circumstances, including the selection and application of reporting policies consistent with the applicable criteria.

           * Provide appropriate reasons for using the criteria.

           * Consider if the criteria are appropriately specific regarding how the sustainability matters should be measured or evaluated.

Specific Considerations for Determining the Suitability of Criteria for Qualitative Information (Ref: Para. 78(c), 107)

 1.       In some circumstances, the practitioner may determine that the criteria for qualitative information are unsuitable. For example, not all the characteristics for suitable criteria are exhibited because the criteria lack specificity or criteria for the qualitative information do not exist. In such circumstances, the practitioner may consider:

           * Requesting that the entity develop suitable criteria.

           * Requesting that the entity not report the information that would result from applying the unsuitable criteria, but if the entity decides to report that information, clearly identifying the information as other information that is not within the scope of the assurance engagement, and performing procedures in accordance with paragraphs 171–177.

           * Whether the information may be misleading, and the impact on acceptance and continuance of the engagement.

           * The impact on the assurance conclusion.

Specific Considerations for Determining the Suitability of Criteria for Processes, Systems and Controls (Ref: Para. 78(c), 107)

 1.       If sustainability information on processes, systems and controls is subject to the assurance engagement, the practitioner may consider whether the criteria encompass the following:

         1.