Document ID: chunk:federal_register_of_legislation:F2025C00209:reg:221:p50
Version: federal_register_of_legislation:F2025C00209
Segment Type: reg
Provision Reference: reg 221 (pt 50/73)
Character Range: 300652–303539

amendments to AASB 9 and AASB 139 is therefore unlikely to result in significant R&M differences.

Other considerations

 1.             The IFRS for SMEs Standard also permits accounting under IAS 39 Financial Instruments: Recognition and Measurement but does not require any additional disclosures beyond what is in the IFRS for SMEs Standard. The Board noted in the IASB's Request for Information on the Comprehensive Review of the IFRS for SMEs Standard that the IASB is considering replacing the option of applying IAS 39 with an option to apply IFRS 9 Financial Instruments, while still retaining the disclosures from the IFRS for SMEs Standard. The Board considered this further supports the argument that no additional disclosures from AASB 2020-8 should be required, as an entity applying the IFRS for SMEs Standard and IAS 39 or IFRS 9 would apply the Interest Rate Benchmark Reform—Phase 2 amendments and not be required to provide any additional disclosures under the view in the Request for Information.

 2.             The Board further considered whether the new disclosure requirements added to AASB 7 address a matter of public policy or are of particular relevance to the Australian environment but did not consider this to be the case. Finally, the Board noted that should interest rate benchmark reform have a material effect on an entity such that knowledge about the financial effects is necessary for an understanding of the financial statements, disclosure would still be required under the general provisions of paragraph 91 in AASB 1060.

 3.             On that basis, the Board took the view that the additional disclosures introduced by AASB 7 paragraphs 24I and 24J should not be added to AASB 1060.

Reasons for providing disclosure relief in AASB 1060

 1.             The Board noted that the IASB decided not to require entities to provide the disclosures otherwise required by IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors paragraph 28(f) because the cost of providing quantitative information about the effect of the changes in accounting policy that are associated with the amendments to IFRS Standards could outweigh the benefits. The Board took the view that this would similarly apply to entities reporting under AASB 1060 and therefore decided to introduce a similar exception into AASB 1060 by adding a new paragraph 107A.

Tier 2 Reduced Disclosure Requirements

 1.             The Board also considered whether the new disclosure requirements in AASB 7 should be reduced for entities reporting under the Tier 2 Reduced Disclosure Requirements (RDR) framework (Tier 2 RDR entities). In doing so, the Board referred to the 'user need' and 'cost-benefit' principles set out in the 'Tier 2 Disclosure Principles' document of the RDR decision-making framework. These principles were also based on the principles applied by