Document ID: chunk:federal_register_of_legislation:F2025C00209:reg:221:p41
Version: federal_register_of_legislation:F2025C00209
Segment Type: reg
Provision Reference: reg 221 (pt 41/73)
Character Range: 276021–278934

available in AASB 2020-2 paragraphs BC122−BC144.

      3.         The Board also decided to retain the requirements to explain how the adoption of AAS has affected the entity's financial position, financial performance and cash flows, and to disclose a description of each change in accounting policy, a reconciliation of the profit and loss for the latest period before adoption, and information about any errors noted in the context of the adoption (paragraphs 208, 210(c), 211 and 212 of this Standard) even though they were not previously required for RDR entities, to keep differences to the IFRS for SMEs Standard at a minimum.

Effective date

      1.         In proposing the effective date in ED 295, the Board had noted that the revised Conceptual Framework as issued by the IASB in March 2018 is effective for annual periods beginning on or after 1 January 2020 and that the regulations in relation to doubling of thresholds for large proprietary companies are applicable to financial years beginning on or after 1 July 2019.

      2.         With these factors in mind and in order to provide an option for large proprietary companies to early adopt AASB 1060, the Board had proposed that AASB 1060 should be ready for adoption latest by 30 June 2020, to be effective for annual periods beginning on or after 1 July 2020.

      3.         However, respondents to ED 295 and ED 297 expressed mixed views on the proposed effective date, with many recommending the Board defer the effective date of both standards by one to two years. After considering the arguments provided by stakeholders and various options, the Board ultimately decided to defer the effective date of both standards by one year to financial years beginning on or after 1 July 2021, with early adoption permitted.

      4.         Further discussion of the Board's consideration on this matter is available in AASB 2020-2 paragraphs BC145−BC153.

Basis for Conclusions on AASB 2020-7

This Basis for Conclusions accompanies, but is not part of, AASB 1060.  The Basis for Conclusions was originally published with AASB 2020-7 Amendments to Australian Accounting Standards – Covid-19-Related Rent Concessions: Tier 2 Disclosures.

Introduction

     BC1 This Basis for Conclusions summarises the Australian Accounting Standards Board's considerations in reaching the conclusions in this Standard. It sets out the reasons why the Board developed the Standard, the approach taken to developing the Standard and the bases for key decisions made. In making decisions, individual Board members gave greater weight to some factors than to others.

Reasons for proposing amendments to AASB 1060

     BC2 In June 2020, the Board issued AASB 2020-4 Amendments to Australian Accounting Standards – Covid-19-Related Rent Concessions to make amendments to AASB 16 Leases to provide lessees with an optional exemption from assessing whether