Document ID: chunk:federal_register_of_legislation:F2023C00381:reg:25:p13
Version: federal_register_of_legislation:F2023C00381
Segment Type: reg
Provision Reference: reg 25 (pt 13/47)
Character Range: 58433–61498

each Australian Accounting Standard that contains the term reporting entity.  Paragraph AusCF1 would direct other entities to AASB 1057 (and SAC 1) for the definition of the term reporting entity.  Tolerated in Phase 1.  That is, unlike in Option 1, it would not be addressed via an AusCF1 paragraph.                                                Tolerated in Phase 1.  That is, unlike in Option 2, it would not be addressed via an AusCF1 paragraph.

     BC35            If Option 1 was adopted, it would result in two conceptual frameworks.  The revised Conceptual Framework would be applied by for-profit private sector entities that have public accountability and are required by legislation to comply with Australian Accounting Standards.  Other for-profit entities could elect to apply the revised Conceptual Framework voluntarily.  All other entities would continue to apply the existing Conceptual Framework.  To operate two conceptual frameworks with only one set of Australian Accounting Standards (including Interpretations), the basic text of each Australian Accounting Standard would be updated for consistency with the IASB's consequential amendments.  The existing, pre-amendment text would also be retained, with the paragraph or footnote given an 'AusCF' prefix.  Australian Accounting Standards that do not have an equivalent IFRS Standard and future consequential amendments would be addressed in the same way.  To address the reporting entity clash, entities applying the revised Conceptual Framework would no longer apply the reporting entity concept in SAC 1.  Instead, these entities would refer to Chapter 3 of the revised Conceptual Framework to determine what the term reporting entity means for them.  Entities applying the existing Conceptual Framework would continue referring to the reporting entity definition in AASB 1057 and SAC 1.

     BC36            If Option 2 was adopted, it would result in the revised Conceptual Framework being applied either in full or in part by all entities.  For-profit private sector entities that have public accountability and are required by legislation to comply with Australian Accounting Standards would adopt the revised Conceptual Framework in full.  Other for-profit entities could also elect to do so voluntarily.  All other entities would apply the revised Conceptual Framework, except for Chapter 3.  Instead, these entities would refer to SAC 1 for the definition of the term reporting entity.  This would address the reporting entity clash.

     BC37            Option 3 is similar to Option 1 as it would result in two conceptual frameworks, however unlike Option 1, Option 3 would result in two sets of Australian Accounting Standards.  One set would be amended for entities adopting the revised Conceptual Framework.  The second set would be frozen at the date the revised Conceptual Framework was issued, and would be applied by entities continuing to apply the existing Conceptual Framework.  Option 3 would not address the reporting entity clash.

     BC38            Option 4