Document ID: chunk:federal_register_of_legislation:F2025C00209:reg:221:p57
Version: federal_register_of_legislation:F2025C00209
Segment Type: reg
Provision Reference: reg 221 (pt 57/73)
Character Range: 320049–323334

in August 2021 through Exposure Draft ED 312 Disclosure of Accounting Policies – Proposed Amendments to Tier 2 and Other Australian Accounting Standards.

      2.                The significant issues considered by the Board in developing ED 312 are addressed in the following sections.

     Relevance of the amendments to AASB 1060

      1.                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.

      2.                Applying this approach, ED 312 proposed that in relation to the amendments made by AASB 2021‑2 to:

               1.                     AASB 101 and AASB 7:

                        1.                      where AASB 1060 contains a corresponding paragraph, AASB 1060 should be updated in a similar manner. If the corresponding paragraph in AASB 1060 is not updated, entities may interpret and apply the requirements of AASB 1060 differently from the corresponding requirements in those Standards; and

                        2.                    where guidance paragraphs were added to AASB 101, these paragraphs should be added to AASB 1060. The intention of these paragraphs is to assist entities in determining whether accounting policy information is material to their financial statements. Therefore, the Board expected this guidance also to be useful for entities preparing Tier 2 financial statements. As AASB 101 does not apply directly to entities applying AASB 1060 (paragraph 2 of AASB 1060 permits entities to refer to other Standards for guidance), the Board considered that a cross-reference to AASB 101 would be unhelpful to users of AASB 1060 and took the view that these paragraphs should be added to AASB 1060;

               2.                    AASB 134 and AASB Practice Statement 2 – no changes to AASB 1060 were required:

                        1.                  AASB 134 applies to the preparation of interim financial reports, whereas AASB 1060 is intended to be used in the preparation of annual general purpose financial statements. Therefore, AASB 1060 does not include any requirements equivalent to those in AASB 134; and

                        2.                  AASB Practice Statement 2 provides non-mandatory guidance to all entities on making materiality judgments when preparing general purpose financial statements in accordance with Australian Accounting Standards. Therefore, AASB 1060 does not include any requirements equivalent to those in AASB Practice Statement 2; and

               3.                     AASB 108 – no changes to AASB 1060 were required. The amended paragraphs in AASB 108 already apply to entities complying with AASB 1060.

     Relevance of the amendments to other Australian Accounting Standards

      1.                The Board reviewed the requirements of all domestic Australian Accounting Standards (including Interpretations) and Australian-specific requirements in Standards, as identified with the 'Aus' prefix. The Board noted that two domestic Standards in addition to AASB 1060 contain references to 'significant