Document ID: chunk:federal_register_of_legislation:F2022L01041:reg:3:p2
Version: federal_register_of_legislation:F2022L01041
Segment Type: reg
Provision Reference: reg 3 (pt 2/3)
Character Range: 26318–29544

128), an indication of how it does not comply; or
          (b)                   if the material accounting policies applied and disclosed in the financial statements comply with the recognition and measurement requirements in Australian Accounting Standards (except for AASB 10 and AASB 128), no additional disclosures are required.
     IG24             Where an entity's accounting policies do not comply with the recognition and measurement requirements in Australian Accounting Standards (except for AASB 10 and AASB 128), the presentation of the disclosure providing an indication of that non-compliance may differ depending on the extent of non-compliance. Entities may choose to provide disclosures for non-compliant policies in one place or placed with each accounting policy disclosed in the financial statements, as appropriate. For example:
          (a)                    an entity may choose to disclose which Australian Accounting Standards are not complied with and provide details of the non-compliance in one place – for example, within the basis of preparation note – where the instances of non-compliance are not extensive (see Example 3); or
          (b)                   where the instances of non-compliance are extensive, details of the non-compliance may be provided within the relevant accounting policy note (see Example 4).

Accounting policy assessment step 2:  Overall compliance
     IG25             Based on the assessment required by paragraph 9C(e), paragraph 9C(f) then requires an entity to disclose whether or not overall the material accounting policies applied and disclosed in the financial statements comply (that is, there are no instances of non-compliance) (see Examples 1 and 2) or do not comply (there are one or more instances of non-compliance) (see Examples 3 and 4) with all the recognition and measurement requirements in Australian Accounting Standards (except for AASB 10 and AASB 128).
     IG26             Based on the AASB's research, some of the most frequent examples of non-compliance with recognition and measurement requirements in Australian Accounting Standards include:
          (a)                    in accounting for income taxes, deferred tax was not recognised, which does not comply with AASB 112 Income Taxes;
          (b)                   in accounting for property, plant and equipment, assets were not depreciated based on their useful lives, which does not comply with AASB 116 Property, Plant and Equipment;
          (c)                    in accounting for impairments, the recoverable amount of assets for impairment testing was calculated on an undiscounted basis, which does not comply with AASB 136 Impairment of Assets;
          (d)                   in accounting for leases, certain leases that would previously have been considered operating leases in accordance with AASB 117 Leases[1] have not been recognised in the statement of financial position, which does not comply with AASB 16 Leases; and
          (e)                    in accounting for revenue, revenue was recognised based on the transfer of risks and rewards or the percentage of completion method in accordance with AASB 118 Revenue,[2] which does not comply with