Document ID: chunk:federal_register_of_legislation:F2025C00209:reg:221:p62
Version: federal_register_of_legislation:F2025C00209
Segment Type: reg
Provision Reference: reg 221 (pt 62/73)
Character Range: 334496–337527

of AASB 101 provide the most useful guidance for preparers when determining whether a liability is current or non-current. The stakeholder was concerned that if these guidance paragraphs were not included in AASB 1060, Tier 2 entities might not be aware of the useful guidance or would have to refer to AASB 101 for the guidance; and

          2.                    one stakeholder suggested the Board reconsider the proposed amendments to paragraph 40(d) and relocate the statement about counterparty equity conversion options to a separate paragraph. In their view, the amendment proposed to paragraph 40(d) in ED 323 implied that the statement is relevant to paragraph 40(d) but not to paragraphs 40(a) and 40(c). They considered that the amendment proposed in ED 323 would be inconsistent with the amendments made to AASB 101, which relocated the statement about counterparty conversion options to a separate paragraph, paragraph 76B.

 2.             The Board considered the feedback and decided:

          1.                     not to add the guidance contained in paragraphs 72B and 75A of AASB 101 to AASB 1060. The Board confirmed its view that guidance paragraphs added to AASB 101 should not be added to AASB 1060; and

          2.                    to relocate the statement about counterparty conversion options from paragraph 40(d) to a new paragraph, paragraph 41A, for consistency with the amendments made to AASB 101.

Effective date

 1.             To ensure consistency between the amendments in this Standard for Tier 2 reporting requirements and the amendments made in AASB 2020‑1 and AASB 2022-6 for Tier 1 reporting requirements, the Board decided that this Standard would be effective for annual periods beginning on or after 1 January 2024, with earlier application permitted.

Basis for Conclusions on AASB 2023-4

This Basis for Conclusions accompanies, but is not part of, AASB 1060.  The Basis for Conclusions was originally published with AASB 2023-4 Amendments to Australian Accounting Standards – International Tax Reform – Pillar Two Model Rules: Tier 2 Disclosures.

Introduction

 1.                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 bases for the key decisions made.  In making decisions, individual Board members gave greater weight to some factors than to others.

Background

Pillar Two model rules

 1.                In October 2021 more than 135 jurisdictions agreed to the Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework on Base Erosion and Profit Shifting's Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy.  Since then, the OECD has published model rules and other documents related to the second pillar of this solution (the Pillar Two model rules).