Climate-related risk disclosures

The AASB and AUASB staff have recently updated their document Climate-related and other emerging risks disclosures: assessing financial statement materiality using AASB Practice Statement 2 which was first released in December 2018.

This document provides information for preparers of financial statements when considering the level (if any) of disclosures of climate-related risks faced by the entity which could affect asset values, provisions and the inputs to impairment testing.

While these disclosures are not currently mandated, a number of significant investment houses have requested them and therefore these disclosures are becoming best practice for listed entities and therefore should be contemplated by all other entities.

For further information on any of the matters included in this newsletter, we encourage you to contact your Bentleys advisor.