Document ID: chunk:federal_register_of_legislation:F2022C01110:reg:20:p1
Version: federal_register_of_legislation:F2022C01110
Segment Type: reg
Provision Reference: reg 20 (pt 1/40)
Character Range: 38849–42371

20                            replaced      AASB 2014-2 [15]
 20A (and preceding heading)  added         AASB 2022-2 [6]
21-22                         amended       AASB 2014-2 [16]
 24 (preceding heading)       added         AASB 2014-2 [17]
                              deleted       AASB 1060 [page 68]
 24                           added         AASB 2014-2 [18]
                              deleted       AASB 1060 [page 68]
Appendix A                    amended       AASB 2019-1 [page 28]
 B3                           added         AASB 2019-1 [page 28]
 B4                           added         AASB 2019-1 [page 28]
Appendix E                    added         AASB 2020-2 [page 11]
E1 (preceding heading)        added         AASB 2021-1 [7]

Table of amendments to Guidance
Paragraph affected     How affected  By … [paragraph/page]
Appendix C (rubric)    amended       AASB 2014-2 [19]
Appendix C, Chart 1    replaced      AASB 2014-2 [20]
                       replaced      AASB 2020-2 [page 10]
                       replaced      AASB 2021-1 [6]
Appendix C, Chart 2    replaced      AASB 2014-2 [20]
Appendix C, Chart 3-4  added         AASB 2014-2 [20]
Appendix D             added         AASB 2014-2 [21]
BC81                   amended       AASB 2014-5 [47]

Basis for Conclusions
The Basis for Conclusions accompanies, but is not part of, AASB 1053.
BC1               This Basis for Conclusions summarises the Australian Accounting Standards Board's considerations in reaching the conclusions in AASB 1053 Application of Tiers of Australian Accounting Standards.  It also provides a context for the Board's decisions about disclosures from which 'Tier 2' entities are exempt, which are reflected in AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements.  It focuses on the issues that the Board considers to be of greatest significance.  Individual Board members gave greater weight to some factors than to others.

Background to Differential Reporting in Australia
BC2               A form of differential reporting has been incorporated in Accounting Standards in Australia since the early 1990s.  The concept of 'reporting entity' is at the core of this differential reporting regime.  Statement of Accounting Concepts SAC 1 Definition of the Reporting Entity deals with the reporting entity concept.  The AASB Glossary of Defined Terms includes the definition of a reporting entity[9] as:
An entity in respect of which it is reasonable to expect the existence of users who rely on the entity's general purpose financial statement for information that will be useful to them for making and evaluating decisions about the allocation of resources. A reporting entity can be a single entity or a group comprising a parent and all of its subsidiaries.
BC3               Most Australian Accounting Standards include the requirements of corresponding International Financial Reporting Standards (IFRSs) and have the following application paragraph:
This Standard applies to:
               (a)                    each entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act and that is a reporting entity;
               (b)                   general purpose financial statements of each other reporting entity; and
               (c)                    financial statements that are, or are held out to be, general purpose financial statements.
Prior to AASB 1053, for-profit and not-for-profit