Document ID: chunk:federal_register_of_legislation:F2023C00190:reg:9b:p2
Version: federal_register_of_legislation:F2023C00190
Segment Type: reg
Provision Reference: reg 9B (pt 2/41)
Character Range: 111932–115024

IAS 1 Presentation of Financial Statements to their respective separate disclosure Standards and harmonised the disclosure requirements across both jurisdictions.

     BC6               The AASB and the FRSB consider that the disclosure of audit fees is a matter of accountability and, given that the accountability environment is similar in both jurisdictions, they should have the same audit fee disclosure requirements.  The Boards also took the opportunity to simplify the disclosure requirements on the basis that in recent times both preparers and users have indicated that disclosures in financial statements have become overly complex.

     BC7               The AASB and FRSB noted the usefulness of the notion of 'related practice' in audit fee disclosures in AASB 101 and decided to incorporate a similar notion that is common to both jurisdictions in the harmonised disclosures.  Accordingly, the Boards decided to include the notion of 'network firm' from APES 110 Code of Ethics for Professional Accountants issued by Accounting and Professional Ethical Standards Board (APESB) (February 2008) and Code of Ethics: Independence in Assurance Engagements issued by the NZICA (September 2008).  The Boards also decided not to define or provide explanatory material for 'network firm' on the basis that the notion is generally understood and preparers and auditors could refer to the relevant APESB and NZICA pronouncements.

     BC8               The AASB and FRSB note that disclosures are made in the context of the scope of the entity reporting.  Accordingly, in the case of a group, disclosures made in accordance with paragraph 10 would include fees paid by the parent and its subsidiaries for each of the parent and its subsidiaries.

Imputation Credits

     BC9               The AASB and the FRSB have relocated the imputation credit disclosure requirements contained in AASB 101 and NZ IAS 12 Income Taxes to their respective separate disclosure Standards and to harmonise the disclosure requirements across both jurisdictions.

     BC10            The AASB and the FRSB noted that Australia and New Zealand are among a limited number of jurisdictions that have an imputation tax regime and acknowledge the decision usefulness of information about imputation credits to users of financial information.  Accordingly, the AASB and the FRSB decided that these disclosure requirements should be retained.

     BC11            Given that both jurisdictions have disclosure requirements about imputation credits, and that the imputation regimes in each jurisdiction are highly similar, the Boards have harmonised the wording across both jurisdictions.  The Boards also took the opportunity to simplify the disclosure requirements on the basis that in recent times both preparers and users have indicated that disclosures in financial statements have become overly complex.

Reconciliation of Net Operating Cash Flow to Profit (Loss)

     BC12            The AASB and the FRSB have relocated the requirement to disclose a reconciliation of net operating cash flow to profit