Document ID: chunk:federal_register_of_legislation:F2023C00190:reg:9b:p30
Version: federal_register_of_legislation:F2023C00190
Segment Type: reg
Provision Reference: reg 9B (pt 30/41)
Character Range: 191532–194462

private sector entities typically would be expected to have access to the resources necessary to make the required assessments and should therefore have an understanding of the R&M requirements in AAS under a good-governance approach to financial reporting.  The Board also considered that while many of these entities might be small in size, they typically would not have overly complex accounting requirements or transactions in this case, and this assessment would therefore be relatively straightforward.

     BC26            The Board considered that the reasons outlined in paragraphs BC24 and BC25 meet the requirements of the standard-setting frameworks as justifiable reasons why for-profit and not-for-profit private sector entities should have different disclosure requirements.

     BC27            The Board also noted that although it did not expect these disclosures to be onerous for for-profit private sector entities, those entities would still have the option of changing their constituting or other documents to avoid reference to AAS should they wish to do so, which would scope them out of this Standard.

Operative date

     BC28            ED 302 proposed an operative date of annual reporting periods ending on or after 30 June 2021.  The Board considered this date would result in those entities with a legislative requirement to comply with AAS or accounting standards being required to include the disclosures in their SPFS for one year before they would be required to transition to GPFS under AASB 2020-2.  Other entities, with a non-legislative requirement to comply with AAS, would also be required to comply promptly, thereby meeting the needs of users of SPFS in a timely way.  The Board was of the view that compliance with R&M requirements is part of good governance and a number of these entities should already be complying with R&M requirements, and therefore the proposals would not be onerous.

     BC29            The Board also noted that, when deciding the effective date of AASB 2019-4 for not-for-profit private sector entities, it was not necessary to provide an extended operative date as the amendments did not require entities to change their existing accounting policies.  At the time of issuing ED 302, the Board's view was that the rationale adopted for the operative date of AASB 2019-4 would also apply in the for-profit private sector context.  On considering the comments from respondents to ED 302 on this matter and taking into account other factors, the Board decided to defer the proposed operative date of this Standard, as explained in paragraphs BC33 and BC34.

Outcome of ED 302

     BC30            Following the consultation period, and after considering stakeholder comments, the Board decided to proceed with the proposals in ED 302, but with some significant changes.  The Board's bases for the proposals it decided to retain are articulated in the Basis