Investors need to be able to connect the information in the financial statements – e.g. about the assumptions used in calculating the recoverable amount – with the information a company provides outside the financial statements (e.g. in the front part of the annual report).
To tell a connected story, companies need to provide a coherent, connected and integrated picture across their financial statements, management discussion and analysis (MD&A) and sustainability-related disclosures, regardless of the frameworks or standards used outside the financial statements.
New standards for sustainability reporting – including European Sustainability Reporting Standards and IFRS® Sustainability Disclosure Standards – mean that the focus on this topic is increasing rapidly.

Although the data and assumptions used to disclose information in the front part of the annual report (e.g. in the MD&A, management commentary and sustainability reports) may differ from those used in the financial statements (see Question 2), they need to be consistent where appropriate.
If inconsistencies exist, then disclosing the significant differences in assumptions and the reasons for them may be necessary to help stakeholders understand and reconcile the information in the front part of the report to the financial statements. In addition, some sustainability reporting frameworks may require disclosing this information as part of the sustainability report.
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