Document ID: chunk:federal_register_of_legislation:F2025C00209:reg:221:p58
Version: federal_register_of_legislation:F2025C00209
Segment Type: reg
Provision Reference: reg 221 (pt 58/73)
Character Range: 323031–326276

The Board reviewed the requirements of all domestic Australian Accounting Standards (including Interpretations) and Australian-specific requirements in Standards, as identified with the 'Aus' prefix. The Board noted that two domestic Standards in addition to AASB 1060 contain references to 'significant accounting policies': AASB 1049 Whole of Government and General Government Sector Financial Reporting and AASB 1054 Australian Additional Disclosures. The Board also considered it appropriate to propose amendments to these Standards to reflect the updated terminology (ie to require or refer to the disclosure of material accounting policy information rather than the disclosure of significant accounting policies) for consistency across all Australian Accounting Standards.

Finalisation of ED 312 proposals

      1.                Following the consultation period, and after considering the comments received, the Board decided to proceed with issuing this Standard, with minimal changes from the proposals in ED 312.

     Feedback from respondents on ED 312

      1.             The Board received formal comment letters on ED 312 from three stakeholders and verbal feedback from another stakeholder. The feedback received indicated that, in general, all respondents were supportive of the proposals. However, some respondents provided additional feedback:

               1.                     one stakeholder noted that ED 312 proposed adding guidance paragraphs to AASB 1060 (proposed paragraphs 95A–95E – corresponding with paragraphs 117A–117E of AASB 101). Although the guidance might be helpful to users, the stakeholder was concerned that guidance paragraphs were not included in AASB 1060 originally and was also unsure whether all of the guidance in proposed paragraphs 95A–95E was necessary. They were also concerned that inclusion of proposed paragraphs 95A–95E might create an expectation that guidance paragraphs would be added to AASB 1060 routinely in the future; and

               2.                    one stakeholder suggested the Board consider whether certain paragraphs in AASB 1060 requiring accounting policy information for specific transactions and balances are necessary, as disclosure of this information is already required by AASB 1060 paragraph 95.[61] They also suggested that if the disclosure requirements were retained, it might be helpful for users of AASB 1060 if the Board clarified that the specific disclosures are required only where they are material to the financial statements.

      2.             The Board considered the feedback and decided:

               1.                     not to add proposed paragraphs 95A–95E to AASB 1060. When developing AASB 1060, the Board was aware that replacing certain Standards with sections in AASB 1060 also removed some of the guidance included in those Standards, where such guidance was also not included in the International Financial Reporting Standard for Small and Medium-sized 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