Appendix A (AASBS1_09-24)

An entity’s system of transforming inputs through its activities into outputs and outcomes that aims to fulfil the entity’s strategic purposes and create value for the entity and hence generate cash flows over the short, medium and long term.

A specific sustainability-related risk or opportunity based on the activities conducted by entities within a particular industry as set out in an Australian Sustainability Reporting Standard or a SASB Standard.

Reports that provide financial information about a reporting entity that is useful to primary users in making decisions relating to providing resources to the entity. Those decisions 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. 

General purpose financial reports include—but are not restricted to—an entity’s general purpose financial statements and sustainability-related financial disclosures.

[Deleted by the AASB]

Applying a requirement is impracticable when an entity cannot apply it after making every reasonable effort to do so.

In the context of sustainability-related financial disclosures, information is material if omitting, misstating or obscuring that information could reasonably be expected to influence decisions that primary users of general purpose financial reports make on the basis of those reports, which include financial statements and sustainability-related financial disclosures and which provide information about a specific reporting entity.

Existing and potential investors, lenders and other creditors.

An entity that is required, or chooses, to prepare general purpose financial statements.

A process for identifying and assessing a potential range of outcomes of future events under conditions of uncertainty.

A particular form of general purpose financial reports that provide information about the reporting entity’s sustainability-related risks and opportunities that could reasonably be expected to affect the entity’s cash flows, its access to finance or cost of capital over the short, medium or long term, including information about the entity’s governance, strategy and risk management in relation to those risks and opportunities, and related metrics and targets.

See primary users of general purpose financial reports (primary users). These definitions describe the same population.

The full range of interactions, resources and relationships related to a reporting entity’s business model and the external environment in which it operates.

A value chain encompasses the interactions, resources and relationships an entity uses and depends on to create its products or services from conception to delivery, consumption and end-of-life, including interactions, resources and relationships in the entity’s operations, such as human resources; those along its supply, marketing and distribution channels, such as materials and service sourcing, and product and service sale and delivery; and the financing, geographical, geopolitical and regulatory environments in which the entity operates.

Notwithstanding the general definitions in the above table, in respect of not-for-profit entities the following terms are described in the Framework for the Preparation and Presentation of Financial Statements and are used in this Standard with the meaning specified in that conceptual framework: 

(a) general purpose financial reports; and 

(b) primary users of general purpose financial reports (primary users, users of general purpose financial reports, users).