Document ID: chunk:federal_register_of_legislation:F2024L00708:body:0:p31
Version: federal_register_of_legislation:F2024L00708
Segment Type: other
Provision Reference: 
Character Range: 83808–86786

to provide information directly to them and must rely on general purpose financial statements for much of the financial information they need. Consequently, they are the primary users to whom general purpose financial statements are directed. Financial statements are prepared for users who have a reasonable knowledge of business and economic activities and who review and analyse the information diligently. At times, even well-informed and diligent users may need to seek the aid of an adviser to understand information about complex economic phenomena.

The roles of the primary financial statements and the notes
B6 Applying paragraph 17(a), an entity provides in the notes information necessary for users of financial statements to understand the line items presented in the primary financial statements. Examples of such information include:
(a) disaggregation of the line items presented in the primary financial statements;
(b) descriptions of the characteristics of the line items presented in the primary financial statements; and
(c) information about the methods, assumptions and judgements used in recognising, measuring and presenting the items included in the primary financial statements.
B7 Applying paragraph 17(b), an entity supplements the primary financial statements with additional information necessary to achieve the objective of financial statements – that is:
(a) information specifically required by Australian Accounting Standards (see paragraph 19) – for example:
(i) information required by AASB 137 Provisions, Contingent Liabilities and Contingent Assets about an entity's unrecognised contingent assets and contingent liabilities; and
(ii) information required by AASB 7 Financial Instruments: Disclosures about an entity's exposure to various types of risks, such as credit risk, liquidity risk and market risk; and
(b) information additional to that specifically required by Australian Accounting Standards (see paragraph 20).

Information presented in the primary financial statements
B8 Paragraph 23 explains that an entity need not present separately a line item in a primary financial statement if doing so is not necessary for the statement to provide a useful structured summary, even if the line item is required by Australian Accounting Standards. For example, an entity need not present a line item listed in paragraph 75 if doing so is not necessary for the statement of profit or loss to provide a useful structured summary of income and expenses, or a line item listed in paragraph 103 if doing so is not necessary for the statement of financial position to provide a useful structured summary of assets, liabilities and equity. If an entity does not present the line items listed in paragraphs 75 and 103, it shall disclose the items in the notes if the resulting information is material (see paragraph 42).
B9 Conversely, applying paragraph 24, an entity shall present additional line items to those listed in paragraphs 75 and