Document ID: chunk:federal_register_of_legislation:F2022L01041:reg:4:p6
Version: federal_register_of_legislation:F2022L01041
Segment Type: reg
Provision Reference: reg 4 (pt 6/18)
Character Range: 61593–64704

in June 2020, which as noted in paragraph BC2 led to the development of this Standard.

Issue of Exposure Draft ED 302
     BC13            The significant issues considered by the Board in developing ED 302 that are pertinent to this Standard are addressed in this section.

Scope
     BC14            When considering which for-profit private sector entities should be required to make the ED 302 proposed disclosures,[5] the Board considered whether the disclosures should be required by:

          (a)                    only those entities preparing SPFS that are directly subject to AASB 1054 Australian Additional Disclosures (for example, an entity with a direct reference to application of AASB 1054 in its trust deed); or

          (b)                   those for-profit private sector entities that are required by legislation (eg Part 2M.3 of the Corporations Act 2001 or other legislation) to prepare financial statements that comply with either AAS or accounting standards, and other for-profit private sector entities that are required only by their constituting document or another document to prepare financial statements that comply with AAS provided the relevant document was created before 1 July 2021 and not amended on or after that date; or

          (c)                    those entities referred to in option (b), with a threshold to limit the requirements to those entities that would meet the requirements to be considered a large proprietary company under the Corporations Act; or

          (d)                   those entities referred to in option (b), but only where their SPFS state they have been prepared in compliance with AAS.
     BC15            For the purposes of ED 302, the Board decided to propose option (b), noting:
          (a)                    option (a) would not achieve the objective of the proposed amendments as it would not include all entities with a non-legislative requirement to prepare financial statements that comply with AAS;
          (b)                   option (c) was not the most appropriate alternative as it would be relatively complex to apply. It would also add to the overall complexity of AAS because it would result in exemptions for certain entities that are already subject to exemptions (in particular, the scope exemptions from the removal of SPFS for for-profit private sector entities made in AASB 2020-2);
          (c)                    option (d) was not the most appropriate alternative for similar reasons to option (c). In addition, the Board was concerned this option might allow any resulting disclosure requirements to be readily circumvented simply through non-disclosure of compliance with AAS, despite an entity's constituting document requiring compliance with AAS without explicitly requiring disclosure of compliance with AAS; and
          (d)                   in adopting option (b), the Board did not expect the proposed disclosures in ED 302 to be onerous. However, it acknowledged that implementing option (b) in paragraph BC14 by making amendments to the application of AASB 1054 (via AASB 1057) would