Document ID: chunk:federal_register_of_legislation:F2022C01110:reg:20:p39
Version: federal_register_of_legislation:F2022C01110
Segment Type: reg
Provision Reference: reg 20 (pt 39/40)
Character Range: 145271–148326

stakeholders also provided feedback suggesting that the proposed paragraph 20A of AASB 1053 should also be available to NFP entities. The stakeholders suggested that broadening the scope of the amendment would avoid any unforeseen effects on NFP entities that are currently preparing unconsolidated Tier 2 – Reduced Disclosure Requirements GPFS and that might decide to transition to consolidated Tier 2 – Simplified Disclosures GPFS.

BC39            The Board acknowledged this feedback but reconfirmed its view that as NFP entities are not affected by the removal of SPFS and the 'reporting entity' definition in Australian Accounting Standards at this stage, they can continue to consider themselves to be non-reporting entities and prepare single-entity Tier 2 – Simplified Disclosures GPFS, applying the exemption in AASB 10, if appropriate. For this reason, the Board decided no changes to the proposed AASB 1053 amendment were necessary.

Effective date
BC40            The Board confirmed that, consistent with the effective date of AASB 2020-2 for most entities, the amendments would be effective for annual periods ending on or after 30 June 2022, with earlier application permitted, as proposed in ED 315.

[1]  Under AASB 101 Presentation of Financial Statements, a complete set of financial statements includes a statement of financial position as at the beginning of the earliest comparative period when an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements.
[2]  AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities, paragraph 26, permits the presentation of a single statement of income and retained earnings in place of the statement of changes in equity if the only changes to equity during the periods for which financial statements are presented arise from profit or loss, payment of dividends, corrections of prior period errors, and changes in accounting policies.
[3]  Compliance with Tier 1 reporting requirements is a reference to compliance with Australian Accounting Standards (Tier 1).
[4]  In this context, Tier 2 reporting requirements refers to either Australian Accounting Standards – Reduced Disclosure Requirements or Australian Accounting Standards – Simplified Disclosures, as appropriate.
[5]  Compliance with Tier 2 reporting requirements is a reference to compliance with Australian Accounting Standards – Simplified Disclosures.
[6]  The AASB 1 option for the retrospective application of Australian Accounting Standards in accordance with AASB 108 might not be relevant here as it is available only in relation to the resumption, not first-time application, of Tier 1 reporting requirements.
[7]  Legend:
SPFSs: special purpose financial statements;
R&M: recognition and measurement in Australian Accounting Standards;
T1: Tier 1;
T2: Tier 2; and
BC: Basis for Conclusions.
[8]  AASB 1053 Application of Tiers