Document ID: chunk:federal_register_of_legislation:F2025C00209:reg:221:p66
Version: federal_register_of_legislation:F2025C00209
Segment Type: reg
Provision Reference: reg 221 (pt 66/73)
Character Range: 345868–348859

proposals in ED 325.

Feedback from respondents on ED 325

 1.             The Board received two formal comment letters on ED 325.  The feedback received indicated that, in general, both stakeholders were supportive of the proposals.  However, one stakeholder provided additional feedback.

 2.             The stakeholder suggested that the proposed clarification to paragraph 176 was not necessary because it is already understood that the "transactions and other events" referred to in paragraph 176 include the enactment or substantive enactment of tax rates and laws.  They also suggested that if the Board is concerned that this may not be the case, the clarification should be worded more broadly than specifically referring to Pillar Two legislation, or else the Board could consider clarifying this in the Basis for Conclusions.

 3.             The Board considered this feedback, along with feedback received by the IASB on IASB/ED/2023/3 and decided to generalise the wording of the clarification to paragraph 176 and refer to the Pillar Two legislation as an example.

Effective date

 1.             The Board decided that the amendments should be made effective for annual periods beginning on or after 1 January 2023 that end on or after 30 September 2023, with earlier application permitted, as proposed in ED 325.  This is consistent with the effective date of AASB 2023-2 for most entities.

 2.             The Board noted the comment from one of the respondents to ED 325 that the proposed effective date could make Tier 2 entities unsure about the application of the amendments to certain periods, such as the 2022/23 financial year.  The Board confirmed the proposed two-pronged effective date, which is required in this case to avoid any mandatory retrospective application to reporting periods that have ended prior to the Board making the Standard.  The Board noted that an entity could elect to apply the amendments before their mandatory application date, for example to the 2022/23 financial year or any period ending before 30 September 2023.

Basis for Conclusions on AASB 2024-1
This Basis for Conclusions accompanies, but is not part of, AASB 1060.  The Basis for Conclusions was originally published with AASB 2024-1 Amendments to Australian Accounting Standards – Supplier Finance Arrangements: Tier 2 Disclosures.

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.

Background

Tier 1 amendments

 1.                In June 2023, the AASB issued AASB 2023-1 Amendments to Australian Accounting Standards – Supplier Finance Arrangements. The Standard amends AASB 107 Statement of