Document ID: chunk:federal_register_of_legislation:F2022C01110:reg:20:p27
Version: federal_register_of_legislation:F2022C01110
Segment Type: reg
Provision Reference: reg 20 (pt 27/40)
Character Range: 111758–114680

read by some as implying that SPFSs of non-reporting entities must be prepared in accordance with Tier 2 reporting requirements.
BC9               The Board decided to amend paragraphs 13 and 15 of AASB 1053 to clarify that Tier 2 reporting requirements only relate to GPFSs.

Reapplication of Tier 1 Reporting Requirements that does not entail Transition from Tier 2
BC10            The Board noted that amendments made to AASB 1 in June 2012 by AASB 2012-5, referred to in paragraph BC2 above, introduced an option for entities returning to Australian Accounting Standards or IFRSs.  An entity can either:
(a)                    apply AASB 1 (including all of its disclosure requirements); or
(b)                   apply Australian Accounting Standards[14] retrospectively in accordance with AASB 108 (as if the entity had never stopped applying Australian Accounting Standards or IFRSs), with some associated disclosures.
BC11            The Board noted that AASB 1 provides exceptions from applying some of the normal Tier 1 reporting requirements retrospectively on the basis that the cost of retrospectively applying some Tier 1 requirements would be likely to exceed the benefits to users of financial statements.  However, the amendments made through AASB 2012-5 acknowledge that the costs of applying AASB 1 without recourse to the AASB 108 option in AASB 1 might exceed the benefits of doing so for an entity that had previously applied Tier 1 requirements.  In particular, the AASB 2012-5 amendments allow an entity resuming the application of Tier 1 reporting requirements to do so using the more cost-beneficial approach.  In applying the AASB 108 option in AASB 1, an entity would apply Tier 1 requirements retrospectively in accordance with AASB 108 as if the entity had never stopped applying Tier 1 requirements.
BC12            However, the Board decided there should be a restriction in relation to the use of the AASB 1 option for retrospective application in accordance with AASB 108 in the Australian financial reporting environment.  This arises because compliance with Tier 1 reporting requirements does not translate into compliance with IFRSs in all cases.  For example, a not-for-profit entity applying AASB 1004 Contributions would apply recognition and measurement requirements that are different from those under IFRSs.  Accordingly, the Board decided that an entity that is to claim IFRS compliance on resuming Tier 1 reporting requirements, but which was not previously IFRS compliant (i.e. it is effectively becoming IFRS compliant for the first time), would not be able to avail itself of the option in AASB 1 for retrospective application in accordance with AASB 108.  Such an entity would apply AASB 1, without recourse to the AASB 108 option in AASB 1, on resuming Tier 1 reporting requirements.
BC13            The Board observed that the effect of the AASB 2012-5 amendments might be