Document ID: chunk:federal_register_of_legislation:F2022C01110:reg:20:p26
Version: federal_register_of_legislation:F2022C01110
Segment Type: reg
Provision Reference: reg 20 (pt 26/40)
Character Range: 108997–112011

statements did not include an explicit and unreserved statement of compliance with Australian Accounting Standards or IFRSs.  Irrespective of whether AASB 1 has previously been applied, the amendments permit such an entity to apply AASB 1, or the option under AASB 1 to apply Australian Accounting Standards retrospectively in accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors as if the entity had never stopped applying Australian Accounting Standards or IFRSs. Additional disclosure requirements were also specified in the amendments.
BC3               At its May 2013 meeting the Board noted that these AASB 1 amendments have implications for AASB 1053 Application of Tiers of Australian Accounting Standards (June 2010).  Accordingly, the Board decided to clarify some of the existing requirements in, and propose introducing new requirements into, AASB 1053 (June 2010).
BC4               Subsequently, the Board issued Exposure Draft (ED) 248 Amendments to AASB 1053 – Transition to and between Tiers, and related Tier 2 Disclosure Requirements in March 2014 for comment by 19 May 2014.  Two written submissions were received.  One submission expressed concern about the loss of reconciliation information that would result from the proposals (see paragraph BC20 below).  The other submission expressed concern about the complexity of the proposals (see paragraph BC5 below).
BC5               In relation to the latter concern, the respondent did not support certain aspects of the proposals in ED 248 and recommended simplifying the transition rules such that AASB 1 is always required to be applied when an entity transitions from special purpose financial statements (SPFSs) to Tier 2 general purpose financial statements (GPFSs), even if the entity previously applied applicable recognition and measurement requirements.  Moreover, the respondent suggested simplifying the transition rules such that AASB 1 is always required to be applied when an entity transitions to Tier 1 GPFSs, even if the entity does not intend to comply with IFRSs.
BC6               The Board considered that while the respondent's suggestions might simplify requirements by increasing the number of scenarios where AASB 1 would be required to be applied, the consideration and application of AASB 1 would not necessarily be a simplification for particular entities.
BC7               Accordingly, the Board decided not to make any substantive changes to the proposals in ED 248 when progressing to the final Standard AASB 2014-2, the basis for which is explained in paragraphs BC8-BC25 below.

Clarification of the Application of AASB 1053
BC8               The Board noted that paragraphs 13 and 15 of AASB 1053 (June 2010) might be read by some as implying that SPFSs of non-reporting entities must be prepared in accordance with Tier 2 reporting requirements.
BC9               The Board decided to amend paragraphs 13 and 15 of AASB 1053 to clarify that Tier 2 reporting requirements