Document ID: chunk:federal_register_of_legislation:F2021L01793:reg:8:p1
Version: federal_register_of_legislation:F2021L01793
Segment Type: reg
Provision Reference: reg 8 (pt 1/4)
Character Range: 15755–19177

8                        For legal purposes, this legislative instrument commences on 31 December 2022.

Basis for Conclusions
This Basis for Conclusions accompanies, but is not part of, AASB 2021-6 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies: Tier 2 and Other Australian Accounting Standards.

Introduction
     BC1               This Basis for Conclusions summarises the Australian Accounting Standards Board's considerations in reaching the conclusions in this Standard. It sets out the reasons why the Board developed the Standard, the approach taken to developing the Standard and the key decisions made. In making decisions, individual Board members gave greater weight to some factors than to others.

Reasons for issuing this Standard
     BC2               In March 2021, the Board issued AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting Estimates. This Standard amended:
          (a)                    AASB 7 Financial Instruments: Disclosures, to clarify that information about measurement bases for financial instruments is expected to be material to an entity's financial statements;
          (b)                   AASB 101 Presentation of Financial Statements, to require entities to disclose their material accounting policy information rather than their significant accounting policies;
          (c)                    AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, to clarify how entities should distinguish changes in accounting policies and changes in accounting estimates;
          (d)                   AASB 134 Interim Financial Reporting, to identify material accounting policy information as a component of a complete set of financial statements; and
          (e)                    AASB Practice Statement 2 Making Materiality Judgements, to provide guidance on how to apply the concept of materiality to accounting policy disclosures.
     BC3               The amendments made by AASB 2021-2 principally affect the disclosure requirements and guidance in some Tier 1 Australian Accounting Standards.[1] The Board decided it was appropriate to make similar amendments to domestic Australian Accounting Standards, including the Tier 2 Standard AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities, to ensure there is consistency in the terminology used across Australian Accounting Standards.

Issue of Exposure Draft ED 312
     BC4               The Board's proposals with respect to the amendments finalised in this Standard were exposed for public comment in August 2021 through Exposure Draft ED 312 Disclosure of Accounting Policies – Proposed Amendments to Tier 2 and Other Australian Accounting Standards.
     BC5               The significant issues considered by the Board in developing ED 312 are addressed in the following sections.

Relevance of the amendments to AASB 1060
     BC6               The AASB For-Profit Entity Standard-Setting Framework and the AASB Not-for-Profit Entity Standard-Setting Framework outline the approach adopted by the Board in considering whether to add to or amend disclosure requirements in AASB 1060 when the IASB makes amendments to full IFRS Standards.
     BC7               Applying this approach, ED 312 proposed that in relation