Document ID: chunk:federal_register_of_legislation:F2022C01110:reg:1:p2
Version: federal_register_of_legislation:F2022C01110
Segment Type: reg
Provision Reference: reg 1 (pt 2/11)
Character Range: 7626–10854

are exempt.

Application of Australian Accounting Standards under the Differential Reporting Framework

Application of Tier 1 Reporting Requirements
11 The following types of entities shall prepare general purpose financial statements that comply with Tier 1 reporting requirements:
(a) for-profit private sector entities that have public accountability and are required by legislation to prepare financial statements that comply with either Australian Accounting Standards or accounting standards; and
(b) the Australian Government and State, Territory and Local Governments.
12 Subject to AASB 1049, GGSs of the Australian Government and State and Territory Governments shall apply Tier 1 reporting requirements.

Application of Tier 2 Reporting Requirements
13 Tier 2 reporting requirements shall, as a minimum, apply to the general purpose financial statements of the following types of entities:
(a) for-profit private sector entities that do not have public accountability;
(b) not-for-profit private sector entities; and
(c) public sector entities, whether for-profit or not-for-profit, other than the Australian Government and State, Territory and Local Governments.
These types of entities may elect to apply Tier 1 reporting requirements in preparing general purpose financial statements.
14 Entities applying Tier 2 reporting requirements would not be able to state compliance with IFRSs.
15 Whilst Tier 2 reporting requirements are available under this Standard for general purpose financial statements of non-publicly accountable for-profit private sector entities, not-for-profit private sector entities and public sector entities (both for-profit or not-for-profit) other than those required to apply Tier 1 reporting requirements, regulators might exercise a power to require the application of Tier 1 reporting requirements.
16 Disclosures under Tier 2 reporting requirements are the minimum disclosures required to be included in general purpose financial statements.  Entities may include additional disclosures using Tier 1 reporting requirements as a guide if, in their judgement, such additional disclosures are consistent with the objective of general purpose financial statements.

Application of AASB 1
17 Entities adopting Tier 2 reporting requirements for the first time that apply AASB 1 shall comply with the simplified disclosures under AASB 1060 paragraphs 206–213, including for the purposes of paragraphs 18A(a) and 18A(b).

First-time Adoption of Australian Accounting Standards
18 When applying Tier 1 reporting requirements for the first time, an entity that prepared its most recent previous financial statements in the form of special purpose financial statements shall apply all the relevant requirements of AASB 1.
18A When applying Tier 2 reporting requirements for the first time, an entity that prepared its most recent previous financial statements in the form of special purpose financial statements:
(a) without applying, or only selectively applying, applicable recognition and measurement requirements of Australian Accounting Standards, including, if a parent entity, without presenting consolidated financial statements prepared in accordance with AASB 10 Consolidated Financial