Document ID: chunk:federal_register_of_legislation:F2025C00209:reg:221:p28
Version: federal_register_of_legislation:F2025C00209
Segment Type: reg
Provision Reference: reg 221 (pt 28/73)
Character Range: 240112–243247

paragraphs 111 – 119

           9.                      Other Financial Instruments Issues (AASB 7): paragraphs 120 – 122

          10.                      Investments in Associates (AASB 12): paragraphs 125 – 128

          11.                    Investments in Joint Ventures (AASB 12): paragraphs 129 – 131

          12.                      Related Party Disclosures (AASB 124): paragraphs 189 – 203

      1.             The Board noted that by replacing the five Standards listed in paragraph BC54, this also removes some of the guidance included in these Standards which is not included in the IFRS for SMEs Standard. However, for the sake of maintaining simplicity of the disclosure requirements, the Board considered this to be preferable to considering on a case-by-case basis which guidance should be included and which could be omitted. As noted in paragraph BC47, the Board does not intend the removal of the guidance to result in any differences in the presentation requirements to full AAS. However, in response to stakeholder feedback, the Board added paragraph 2 which specifically permits entities to refer to other Standards for guidance on requirements in this Standard. The Board also added the definitions from the replaced Standards in Appendix A.

      2.             To prevent possible differences in presentation requirements to full AAS, the Board further decided to add the following requirements from AASB 101, AASB 107 and AASB 124 to AASB 1060 which deal with:

           1.                     the prohibition for Australian entities that apply AASB 1060 to depart from a requirement in an Australian Accounting Standard (paragraph 12 in this Standard and paragraph Aus19.1 in AASB 101);

           2.                    the specific prohibition to offset assets and liabilities or income and expenses, unless required or permitted by an Australian Accounting Standard (paragraph 24 in this standard and paragraph 32 in AASB 101);

           3.                     the option to present the net cash flow from operating activities under the indirect method by showing the revenues and expenses disclosed in the statement of comprehensive income and the changes during the period in inventories and operating receivables and payables (paragraph 72 in this standard and paragraph 20 in AASB 107);

           4.                    options to report certain cash flows on a net basis (paragraphs 75 to 78 in this Standard and paragraphs 22−24 in AASB 107);

           5.                     the exemption from the disclosure of key management personnel compensation where the entity obtains key management personnel services from another entity (paragraphs 195 and 196 in this standard and paragraphs 17A and 18A in AASB 124).

      1.             The prohibition to depart from a requirement in an Australian Accounting Standard reflects Australian specific circumstances which are also relevant to Tier 2 entities and hence needs to be included. Paragraphs 3.4, 3.5 and 3.6 of the IFRS for SMEs Standard have been deleted, as they are not relevant to entities applying this Standard.

      2.