Document ID: chunk:federal_register_of_legislation:F2025C00209:reg:221:p33
Version: federal_register_of_legislation:F2025C00209
Segment Type: reg
Provision Reference: reg 221 (pt 33/73)
Character Range: 253806–256679

reporting period, the Board noted that paragraph 185 specifically refers to an update of 'related disclosures', which is different to the equivelant requirements in AASB 110 Events after the Reporting Period, where paragraph 8 requires the adjustment of amounts recognised in the financial statements and paragraphs 19 and 20 deal with disclosure-related adjustments. While RDR entities were not required to comply with paragraphs 19 and 20 of AASB 110, the Board noted that paragraph 185 refers only to disclosures that relate to amounts recognised in the financial statements and is therefore narrower than the requirements in paragraphs 19 and 20 of AASB 110. On that basis, the Board did not consider the requirements to be particularly onerous and decided to retain them consistent with the principle of consistency with the IFRS for SMEs Standard.

      9.             In considering differences between AASB 138 Intangible Assets and Section 18 Intangible Assets other than Goodwill in the IFRS for SMEs Standard, the Board noted that the IFRS for SMEs Standard does not permit the revaluation of intangible assets and therefore does not require relevant disclosures. The Board decided that these disclosures would be relevant and should be added, using the disclosures for property plant and equipment from paragraph 17.33 of the IFRS for SMEs Standard as a basis. The Board also decided to add a requirement to disclose the reason for an intangible asset having an indefinite useful life based on AASB 140 Investment Property paragraph 122(a), as this option is not available under the IFRS for SMEs Standard.

     10.             However, the IFRS for SMEs Standard also requires for revalued property, plant and equipment the disclosure of the carrying amount of the assets that would have been recognised under the cost model (paragraph 17.33(d) in the IFRS for SMEs Standard). The Board noted that the option to use the revaluation model for property, plant and equipment was only introduced into the IFRS for SMEs Standard as part of the amendments made in 2015. While the Basis for Conclusions to the amendments explain the reasons for permitting this option[56], they do not discuss the associated disclosures that were added in the process. When the Board discussed this particular disclosure requirement in the context of the original RDR disclosures in ED 192 Revised Differential Reporting Framework, it noted that the revaluation model provides more relevant information than the cost model, and that it would appear illogical and irrelevant to provide comparative information about the cost model[57]. The Board therefore concluded that the cost of this disclosure would outweigh the benefits. These arguments are still valid and on that basis the Board decided not to include this particular disclosure from the IFRS from SMEs Standard.

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