Document ID: chunk:federal_register_of_legislation:F2025C00209:reg:221:p40
Version: federal_register_of_legislation:F2025C00209
Segment Type: reg
Provision Reference: reg 221 (pt 40/73)
Character Range: 273326–276294

are added at the end of each paragraph where applicable.  Where paragraphs from the IFRS for SMEs Standard have been amended, the words 'based on' are used.

      2.             The Board further decided that the analysis tables developed for ED 295 (See Detailed comparison of R&M requirements in IFRS for SMEs Standard and full IFRS and analysis of impact on disclosures – For for-profit private sector entities with no public accountability and Analysis of NFP modifications paragraphs in AAS and NFP specific AASB Standards for detailed analysis) will include all the edits and mark-ups and will be used as an ongoing document for future reference. They will be a record of the rationale behind certain decisions and judgements and would facilitate any future amendments.

      3.             The Board also acknowledged that a review of the disclosures will need to take place any time the IFRS for SMEs Standard is updated, a new Australian Accounting Standard or Interpretation is issued or amendments are made to existing Australian Accounting Standards or Interpretations.

Transitional requirements

      1.             The Board considered whether specific transitional requirements needed to be added to AASB 1053 in relation to AASB 1060, but has concluded that this is not necessary for the following reasons:

           1.                     adjustments to recognised amounts will only arise where an entity did not previously report either under Tier 1 or Tier 2 (RDR); and

           2.                    the principles of transitioning to full R&M requirements are the same, regardless of the level of disclosures to be provided.

      1.             Therefore, the Board concluded that the transition requirements in paragraph 18A of AASB 1053 can be retained without further changes (except some changes required by AASB 2020-2 to clarify the scope of the paragraph for certain entities required to consolidate for the first time). However, the Board decided to add an explanatory paragraph 18C to AASB 1053 which confirms the different disclosures that apply to Tier 2 entities that apply this Standard.

      2.             The Board acknowledged that the adoption of this new Tier 2 Standard as such will not result in any adjustments to recognised amounts unless an entity has not previously complied with all R&M requirements of AAS and is preparing GPFS for the first time. Separate transition relief has been provided in Appendix E of AASB 1053 Application of Tiers of Australian Accounting Standards for entities moving from SPFS to Tier 2 GPFS when adopting the requirements of AASB 2020-2. Further discussion of the Board's consideration on this matter is available in AASB 2020-2 paragraphs BC122−BC144.

      3.         The Board also decided to retain the requirements to explain how the adoption of AAS has affected the entity's financial position, financial performance and cash flows, and to disclose a description of each