Document ID: chunk:federal_register_of_legislation:F2024L01472:body:0:p45
Version: federal_register_of_legislation:F2024L01472
Segment Type: other
Provision Reference: 
Character Range: 127508–130672

undertake an exhaustive search for information to identify climate-related risks and opportunities that could reasonably be expected to affect the entity's prospects. The assessment of what constitutes undue cost or effort depends on the entity's specific circumstances and requires a balanced consideration of the costs and efforts for the entity and the benefits of the resulting information for primary users. That assessment can change over time as circumstances change.
B11–
B12 [Not included]

Materiality (paragraphs 17–19)
B13 Paragraph 17 requires an entity to disclose material information about the climate-related risks and opportunities that could reasonably be expected to affect the entity's prospects. Materiality of information is judged in relation to whether omitting, misstating or obscuring that information could reasonably be expected to influence decisions of primary users of general purpose financial reports, which provide information about a specific reporting entity.
B14 The decisions of primary users relate to providing resources to the entity and involve decisions about:
(a) buying, selling or holding equity and debt instruments;
(b) providing or selling loans and other forms of credit; or
(c) exercising rights to vote on, or otherwise influence, the entity's management's actions that affect the use of the entity's economic resources.
          AusB14.1 In respect of not-for-profit entities, the following are examples of decisions of primary users relating to providing resources to an entity:
               (a) parliaments deciding on behalf of constituents whether to fund particular programmes for delivery by an entity;
               (b) taxpayers deciding who should represent them in government;
               (c) donors deciding whether to donate resources to an entity; and
               (d) recipients of goods and services deciding whether they can continue to rely on the provision of goods and services from the entity or whether to seek alternative suppliers.
B15 The decisions described in paragraph B14 depend on primary users' expectations about returns, for example, dividends, principal and interest payments or market price increases. Those expectations depend on primary users' assessment of the amount, timing and uncertainty of future net cash inflows to the entity and on their assessment of stewardship of the entity's economic resources by the entity's management and its governing body(s) or individual(s).
          AusB15.1 In respect of not-for-profit entities, the decisions described in paragraph AusB14.1 depend on primary users' expectations about returns and a not-for-profit entity's ability to continue providing goods or services. Those expectations depend on primary users' assessment of the amount, timing and uncertainty of future net cash inflows to the entity and on their assessment of stewardship of the entity's economic resources by the entity's management and its governing body(s) or individual(s).
B16 Assessing whether information could reasonably be expected to influence the decisions made by primary users requires consideration of the characteristics of those users