Document ID: chunk:federal_register_of_legislation:F2022C01110:reg:20:p19
Version: federal_register_of_legislation:F2022C01110
Segment Type: reg
Provision Reference: reg 20 (pt 19/40)
Character Range: 89341–92319

as they become available at the full IFRS level because the IASB has stated that it will only update the IFRS for SMEs once there have been two years of broad adoption and, thereafter, every three years;
(d)                   possible benefits that might result from comparability with overseas entities applying the IFRS for SMEs would:
(i)                     depend on how widely adopted it becomes;
(ii)                   be limited because entities seeking to access international capital markets would generally apply full IFRSs; and
(iii)                 be mitigated due to a loss of comparability across all types of entities' general purpose financial statements within Australia;
(e)                    having different streams of recognition and measurement requirements involves different streams of knowledge, such that education and training at the tertiary level and within the accounting profession would become more costly;
(f)                    there would be start up costs because entities preparing general purpose financial statements have already made the effort to apply full IFRSs;
(g)                   adoption of the IFRS for SMEs may be seen as a retrograde step in a country that has already adopted full IFRS recognition and measurement accounting policy options;
(h)                   the actual changes in recognition and measurement requirements in the IFRS for SMEs would not produce any real economies for Australian SMEs; and
(i)                     in the event that an entity moves to, or from, full IFRSs, there would be costs involved in migrating from the recognition and measurement requirements of one Tier of reporting to another.
BC74            The Board concluded that the IFRS for SMEs is not presently a suitable set of requirements for Tier 2 in Australia.  However, the Board decided it will continue to monitor and contribute to further changes in the IFRS for SMEs and that it is open to the possibility of adopting the IFRS for SMEs in future should the changes in that Standard make it practicable in an integrated for-profit/NFP sector reporting environment.
BC75            The Board noted that the introduction of the RDR as Tier 2 is supported by a majority of respondents to ED 192 who have also provided reasons for not supporting the adoption of the IFRS for SMEs as Tier 2 in place of the RDR or as an alternative alongside it.

Approach to Determining Disclosure Requirements under the RDR
BC76            In determining the RDR, the Board sought to balance the need to reduce disclosures with the need to satisfy the objective of general purpose financial statements.  From amongst a number of possible approaches to determining disclosure requirements under the RDR, the Board decided to adopt an approach that:
(a)                    draws on the IFRS for SMEs to identify disclosures in cases where the recognition and measurement accounting policy options available or requirements under the RDR align with