Document ID: chunk:federal_register_of_legislation:F2023C00381:reg:8:p11
Version: federal_register_of_legislation:F2023C00381
Segment Type: reg
Provision Reference: reg 8 (pt 11/28)
Character Range: 190258–193718

unlisted public companies not limited by guarantee.

          (d)                   The AASB's For-Profit Entity Standard-Setting Framework: The Board noted the presumption that IFRS Standards are appropriate as a base for all entities, with particular regard to the fact that AASB 1, which incorporates IFRS 1 First-Time Adoption of International Financial Reporting Standards, had been developed by the IASB to reduce the cost of first-time adoption of IFRS Standards, so that it does not outweigh the benefits of adoption. The Board also observed that the application of AASB 1 has been an appropriate base for entities transitioning to AAS since 2005, including a large number of SGEs that were required to transition from SPFS to GPFS for reporting periods ending on or after 30 June 2017. Paragraphs BC154-BC156 provide further discussion on how the Board applied The AASB's For-Profit Entity Standard-Setting Framework in arriving at the requirements in this Standard.

          (e)                    No adverse feedback from entities that transition as a result of the SGE requirements: Despite specifically requesting feedback, the Board was not made aware of any significant transitional issues faced by the SGEs that were required to begin lodging GPFS with the ATO. These entities would have transitioned using the current requirements of AASB 1. The Board has also not heard any adverse feedback from the ATO on the quality of the financial reports that have been lodged.

          Further, the Board noted that many of the entities that have already transitioned to preparing GPFS as required by the SGE legislation, are entities expected to be within the scope of this Standard (ie they are required to prepare financial statements under Part 2M.3 of the Corporations Act 2001 and are now preparing GPFS). As a result, there are likely to be fewer entities required to transition from SPFS to GPFS as a result of this Standard. Further the Board does not expect the reporting requirements for these SGE entities to be any more onerous as a result of this Standard (ie they will continue to prepare GPFS as required by SGE legislation).

     BC127        Nevertheless the Board considered three possible options to provide transitional relief in addition to what is available under AASB 1, as follows:

Option                                                                                                        Nature of the relief considered                                                                                                                                                                                                                                                                                                                                                                                                                                                              Key factors considered

'Push-down accounting' for entities that are subsidiaries of an IFRS Standards and / or AAS compliant parent  To allow subsidiaries that are consolidating into the financial statements of an AAS or IFRS Standards compliant parent to recognise amounts reported in their reporting / consolidation pack (which would have been derived from acquisition date fair values) to be deemed cost in their individual financial statements (subject to requiring them to recognise only those assets and liabilities that qualify for recognition