Document ID: chunk:federal_register_of_legislation:F2025C00209:reg:221:p30
Version: federal_register_of_legislation:F2025C00209
Segment Type: reg
Provision Reference: reg 221 (pt 30/73)
Character Range: 245632–248626

69(d) of AASB 101). This will further ensure that there are no presentation differences to full AAS.

      6.            Consistent with the basic approach of minimising differences to the disclosures in the IFRS for SMEs Standard, the Board decided to retain paragraph 3.18 of the IFRS for SMEs Standard which includes an option of not presenting a statement of changes in equity if the only changes to equity during the periods for which financial statements are presented arise from profit or loss, payment of dividends, corrections of prior period errors, and changes in accounting policy (paragraph 26 in this Standard).

      7.            In relation to the replacement of AASB 12, the Board noted that the investment entity exemption from consolidation creates a R&M difference to the IFRS for SMEs Standard. However, based on the principles listed in paragraph BC41, the Board did not consider that additional disclosures would be warranted in relation to this exemption. The Board noted that the IASB discussed the investment entity exception in the context of the 2020 Request for Information Comprehensive Review of the IFRS for SMEs Standard and concluded that few entities eligible to apply the IFRS for SMEs Standard would be investment entities. The Board also expects the exemption to have limited practical impact, since the majority of investment entities will be publicly accountable and therefore not able to apply this Standard.

      8.            In responding to stakeholders' concerns that an investment entity preparing separate financial statements could not comply with paragraph 105 of this Standard because the paragraph requires the entity to identify the consolidated financial statements or other primary financial statements to which the separate financial statements relate, the Board noted that separate financial statements are defined in AASB 127 Separate Financial Statements as financial statements that are presented in addition to consolidated financial statements or to financial statements that apply equity-accounting to investments in associates or joint ventures (consistent with the definition of separate financial statements in the IFRS for SMEs Standard). Therefore, the financial statements prepared by investment entities would not be separate financial statements under that definition and as a result paragraph 105 would not apply.

Judgements made in adding, removing or adapting the disclosures in the IFRS for SMEs Standard

      1.             The Board has exercised a number of significant judgements while adding, removing and amending disclosures from the certain sections of the IFRS for SMEs Standard.

      2.             In considering the R&M differences between AASB 16 Leases and Section 20 Leases in the IFRS for SMEs Standard, the Board noted that the accounting for all leases held by lessees under AASB 16 is broadly similar to the the accounting for finance leases in the IFRS for SMEs Standard. As a consequence,