Document ID: chunk:federal_register_of_legislation:F2023C00381:reg:8:p13
Version: federal_register_of_legislation:F2023C00381
Segment Type: reg
Provision Reference: reg 8 (pt 13/28)
Character Range: 204523–211807

presumption that IFRS Standards are an appropriate base. In particular, the Board noted that this amendment would fundamentally change the R&M requirements of AASB 1; and

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             (c)     because this relief could lead to significant loss of information about impairment for users and regulators.

Relief from restating comparative information as required by AAS                                              To amend AASB 1 to specify that entities need not restate or present comparative information as required by AAS. This would mean the date of transition is the beginning of the reporting period (rather than the beginning of the comparative period).                                                                                                                                                                                                                                      The Board decided to propose this relief in ED 297, noting the advantages include:

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             (a)     the relief would facilitate the transition to GPFS in a more timely manner – for periods beginning on or after 1 July 2020 (on the assumption the Standard would be issued as an amending standard prior to 30 June 2020). This would also mean that, effectively, the RCF and the removal of the ability of certain entities to prepare SPFS when they are required to prepare financial statements that comply with AAS would become effective for the first time in the same reporting period;

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             (b)     the relief was not expected to have implications for the R&M requirements in AAS, except to the extent that the change in the date of transition would lead to differences in opening balances based on a different date of transition; and

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             (c)     the relief would reduce costs to all entities required to transition from SPFS to GPFS.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           However, the Board did note some disadvantages, including:

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             (a)     reduced information for users – particularly in making trend analyses; and

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             (b)     the approach would require divergence from the presumption in The AASB's For-Profit Entity Standard-Setting Framework that IFRS Standards are appropriate as a base, albeit it would not a major deviation.

     BC128        For the reasons noted in the table in paragraph BC127, the Board decided against providing additional transitional relief in the form of 'push-down accounting' or immediate write-off of deemed goodwill against retained earnings. The Board sought specific feedback through ED 297 on whether it should re-consider any of the rejected options noted above but did not receive any further compelling reasons to do so.

Relief from restating and presenting comparative information

     BC129        As noted in the table in paragraph BC127, the Board concluded that relief from the restatement and presentation of comparative information in accordance with current AAS would be beneficial as it could reduce preparation costs whilst providing a consistent, enforceable and transparent reporting framework (despite a lack of comparability in the year of transition).  Thus the Board proposed in ED 297 that an entity would not be required to provide restated comparative information as per current