Document ID: chunk:federal_register_of_legislation:F2024L01472:body:0:p43
Version: federal_register_of_legislation:F2024L01472
Segment Type: other
Provision Reference: 
Character Range: 121823–124939

judgements the entity has made in measuring the amount.
79 When amounts reported in climate-related financial disclosures cannot be measured directly and can only be estimated, measurement uncertainty arises. In some cases, an estimate involves assumptions about possible future events with uncertain outcomes. The use of reasonable estimates is an essential part of preparing climate-related financial disclosures and does not undermine the usefulness of the information if the estimates are accurately described and explained. Even a high level of measurement uncertainty would not necessarily prevent such an estimate from providing useful information.
80 The requirement in paragraph 77 for an entity to disclose information about the uncertainties affecting the amounts reported in climate-related financial disclosures relates to the estimates that require the entity's most difficult, subjective or complex judgements. As the number of variables and assumptions increases, those judgements become more subjective and complex, and the uncertainty affecting the amounts reported in the climate-related financial disclosures increases accordingly.
81 The type and extent of the information an entity might need to disclose vary according to the nature of the amount reported in the climate-related financial disclosures—the sources of and the factors contributing to the uncertainty and other circumstances. Examples of the type of information an entity might need to disclose are:
(a) the nature of the assumption or other source of measurement uncertainty;
(b) the sensitivity of the disclosed amount to the methods, assumptions and estimates underlying its calculation, including the reasons for the sensitivity;
(c) the expected resolution of an uncertainty and the range of reasonably possible outcomes for the disclosed amount; and
(d) an explanation of changes made to past assumptions concerning the disclosed amount, if the uncertainty remains unresolved.
     82 [Not included]

Errors
83 An entity shall correct material prior period errors by restating the comparative amounts for the prior period(s) disclosed unless it is impracticable to do so.
84 Prior period errors are omissions from and misstatements in the entity's climate-related financial disclosures for one or more prior periods. Such errors arise from a failure to use, or the misuse of, reliable information that:
(a) was available when the climate-related financial disclosures for that period(s) were authorised for issue; and
(b) could reasonably be expected to have been obtained and considered in the preparation of those disclosures.
85 Corrections of errors are distinguished from changes in estimates. Estimates are approximations that an entity might need to revise as additional information becomes known.
86 If an entity identifies a material error in its prior period climate-related financial disclosures, it shall apply paragraphs B55–B59.

Application guidance (from AASB S1, Appendix B)

Climate-related risks and opportunities (paragraphs 11–12)
B1 This Standard requires an entity to disclose information about all