Document ID: chunk:federal_register_of_legislation:F2025C00209:reg:221:p52
Version: federal_register_of_legislation:F2025C00209
Segment Type: reg
Provision Reference: reg 221 (pt 52/73)
Character Range: 306088–308876

that entities applying the amendments should not be required to disclose the information otherwise required by paragraph 28(f) of AASB 108. As this relief is provided to entities reporting under the Tier 1 framework, the Board took the view that it should also be available for Tier 2 entities applying RDR so that they are not disadvantaged compared with entities reporting under Tier 1.

 7.             The Board noted that the proposals would result in different disclosure requirements for Tier 2 entities applying the RDR framework compared with Tier 2 entities applying the Simplified Disclosure framework under AASB 1060. However, the Board considered this outcome would be consistent with the different approach used in developing AASB 1060 and the different starting points of the two Tier 2 disclosure frameworks. It demonstrates that the principles applied in developing the simplified disclosures can successfully reduce the disclosures for Tier 2 entities. Furthermore, the Board does not expect many Tier 2 entities to be affected by interest rate benchmark reform and noted that Tier 2 entities would be able to apply AASB 1060 early if they preferred not to make these particular disclosures. Therefore, the Board considered the proposed disclosure requirements would not impose a significant burden on Tier 2 RDR entities.

 8.             On that basis, the Board took the view that the additional disclosure requirements introduced by AASB 7 paragraphs 24I and 24J should not be reduced for Tier 2 RDR entities but that the relief from disclosing information about the financial effects of changes in accounting policy in paragraph 44HH should be available to such entities. This approach means that no further changes need to be made to AASB 7 in relation to Tier 2 RDR.

Issue of ED 304 Interest Rate Benchmark Reform – Phase 2: Tier 2 Disclosures

 1.             The Board's proposals were exposed for public comment in October 2020 through Exposure Draft ED 304 Interest Rate Benchmark Reform – Phase 2: Tier 2 Disclosures. Noting that there may be entities intending to early adopt AASB 1060, the Board agreed on a short exposure period of 30 days from the day of issue of the ED to ensure the relief would be available when needed. The Board did not receive any written submissions on the ED, but did receive verbal feedback from one stakeholder that was generally supportive of the proposed amendments, other than the proposal for differing disclosure outcomes for the two types of Tier 2 entities. The Board reaffirmed the considerations set out in the Basis for Conclusions on this matter and decided to finalise and approve the amendments as proposed.

Basis for Conclusions on AASB 2021-1

This Basis for Conclusions accompanies, but is not part of, AASB