Document ID: chunk:federal_register_of_legislation:F2024L01472:body:0:p74
Version: federal_register_of_legislation:F2024L01472
Segment Type: other
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Character Range: 211591–214847

significant to warrant modification from the baseline of IFRS S2. Consequently, the AASB decided to omit paragraph Aus29.1 proposed in [draft] ASRS 2 that referred to the 'key management personnel' and 'compensation' definitions in AASB 124 Related Party Disclosures; and
          2.                    there may be challenges in calculating the percentage of remuneration linked to climate-related considerations based on remuneration recognised under Accounting Standards. The AASB  determined that any challenges identified by stakeholders in applying the requirements set out in paragraph 29(g) of IFRS S2 do not represent matters specific to the Australian environment that would warrant departure from the baseline of IFRS S2 in accordance with the AASB Sustainability Reporting Standard-Setting Framework (September 2023).
 3.             Additionally, some stakeholders commented that information prepared under the requirements set out in paragraph 29(g) of IFRS S2, on a standalone basis, might appear out of context relative to the existing remuneration disclosure requirements set out in Australian legislation for ASX-listed and APRA-regulated entities. The AASB observed that under paragraph 63 of IFRS S1, entities (including ASX-listed entities and APRA-regulated entities) are permitted to disclose information required under paragraph 29(g) of AASB S2 by cross-referencing to their remuneration reports, if the conditions in paragraphs B45–B47 of IFRS S1 are met. The AASB decided to incorporate those IFRS S1 paragraphs in Appendix D of AASB S2.

Internal carbon prices
 1.             Paragraph 29(f) requires an entity to disclose the following information:
          1.                     an explanation of whether and how the entity is applying a carbon price in decision-making (for example, investment decisions, transfer pricing and scenario analysis); and
          1.                    the price for each metric tonne of greenhouse gas emissions the entity uses to assess the costs of its greenhouse gas emissions.
 2.             Some stakeholders commented that the internal carbon price adopted by an entity is commercially sensitive. They commented that, in the energy sector, mandatory disclosure of this information could give competitors valuable insight into the cost structures, operational efficiencies and strategic decision making (including risk management) of the entity.
 3.             The AASB noted that paragraphs 73 and B34–B37 of IFRS S1 relieve an entity from disclosing information about a sustainability-related opportunity that is commercially sensitive. The AASB decided to incorporate those IFRS S1 paragraphs in Appendix D.

Definition of carbon credits
 1.             The AASB decided to align with the IFRS S2 definition of carbon credits with no modification.
 2.             ED SR1 proposed to amend the definition of carbon credits to include an explicit reference to the Australian Carbon Credit Unit (ACCU) Scheme. The AASB considered stakeholder feedback and observed that modifying the definition of carbon credits could have the unintended consequences of:
          1.                     implying that all emission units recognised under the ACCU Scheme are not 'carbon credits' under