Document ID: chunk:federal_register_of_legislation:F2025C00209:reg:221:p59
Version: federal_register_of_legislation:F2025C00209
Segment Type: reg
Provision Reference: reg 221 (pt 59/73)
Character Range: 326019–329110

Entities (IFRS for SMEs Standard). However, for the sake of maintaining the simplicity of the disclosure requirements in AASB 1060, the Board considered this to be preferable to considering on a case-by-case basis which guidance should be included and which could be omitted.[62] Whilst the Board was unable to follow the IASB approach in this case as the IFRS for SMEs Standard was last updated in 2015, on balance the Board considered that including the proposed guidance paragraphs in AASB 1060 was not necessary. The Board noted that AASB 1060 paragraph 2 permits an entity applying AASB 1060 to refer to other Australian Accounting Standards (including AASB 101) for guidance where necessary; and

               1.                     to clarify that the accounting policy disclosure requirements in AASB 1060 for specific transactions or balances apply only where the accounting policy information is material to the financial statements (i.e. the same basis as the general requirement to disclose accounting policy information in AASB 1060 paragraph 95).  The Board considered that the clarification would be helpful to users of AASB 1060.

Effective date and early application

      1.             To ensure consistency between the amendments in this Standard and the amendments made in AASB 2021‑2, the Board decided that this Standard would be effective for annual periods beginning on or after 1 January 2023, with earlier application permitted.

Basis for Conclusions on AASB 2023-3
This Basis for Conclusions accompanies, but is not part of, AASB 1060.  The Basis for Conclusions was originally published with AASB 2023-3 Amendments to Australian Accounting Standards – Disclosure of Non-current Liabilities with Covenants: Tier 2.

Introduction

 1.                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 the key decisions made. In making decisions, individual Board members gave greater weight to some factors than to others.

Reasons for proposing these amendments

 1.                The Board issued AASB 2020-1 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-Current in March 2020 and AASB 2022-6 Amendments to Australian Accounting Standards – Non-current Liabilities with Covenants in December 2022. These Standards amended AASB 101 Presentation of Financial Statements to improve the information an entity provides in its financial statements about liabilities arising from loan arrangements for which the entity's right to defer settlement of those liabilities for at least twelve months after the reporting period is subject to the entity complying with conditions specified in the loan arrangement (often referred to as 'covenants'). AASB 2022‑6 also amended an example in AASB Practice Statement 2 Making Materiality Judgements regarding assessing whether information about covenants