Document ID: chunk:federal_register_of_legislation:F2025C00209:reg:221:p20
Version: federal_register_of_legislation:F2025C00209
Segment Type: reg
Provision Reference: reg 221 (pt 20/73)
Character Range: 217908–220842

RDR, the other proposed Tier 2 options and the disclosure principles applied by the IASB while developing the IFRS for SMEs Standard, the Board decided in February 2019 to develop a new Tier 2 Standard based on the disclosures in the IFRS for SMEs Standard which would be available for GPFS that are publicly lodged or are required to comply with AAS, but do not relate to entities that are publicly accountable.

      2.             Using the IFRS for SMEs Standard as the base maximises the use of relevant IFRS-based materials. The Board further noted that the IASB had added a research project on Subsidiaries that are SMEs to their agenda in March 2019, which was moved to the standard-setting programme in January 2020. Consistent with the policy of adopting Standards issued by the IASB for application by Australian entities, AASB 1060 may ultimately be replaced with the Standard developed by the IASB. This would not only remove the need for the Board to maintain a separate Tier 2 Standard, but also provide comparability and consistency for subsidiary reporting globally. However, this is a longer-term project and the Board needs to have a revised disclosure framework in place in time for the removal of SPFS from 1 July 2021. While the Board could therefore not wait for the IASB to complete their project, the Board will monitor the progress of the IASB's project closely.

      3.             The disclosures that are relevant to Tier 2 entities are set out in a separate Standard, being AASB 1060, which was exposed for public comment in August 2019 as ED 295, together with ED 297. The comment period for both EDs ended on 30 November 2019.

      4.             Extensive outreach was conducted on the proposals, including roundtables in Melbourne, Sydney, Brisbane, Perth and Adelaide, attended by 127 stakeholders, a webinar with 162 participants, as well as separate consultations with the AASB's User Advisory Committee, credit analysts and private equity investors.

      5.             The Board received 25 formal submissions on ED 295 from stakeholders representing professional services firms, regulators, professional bodies, academics, preparers, public sector audit offices, software providers and others.

      6.             The following section details the matter considered by the Board in developing the proposals and this Standard, including the Board's decisions on how to address stakeholders' feedback as part of the exposure process.

Costs vs benefits

      1.             The Board identified the following benefits arising from the adoption of the new Tier 2 Standard over the other options considered:

               1.                     The IASB has developed the disclosures in the IFRS for SMEs Standard with for-profit private sector entities that are not publicly accountable entities in mind and considers that they are adequate to meet the needs of the relevant users[50].