Document ID: chunk:federal_register_of_legislation:F2023C00190:reg:9b:p26
Version: federal_register_of_legislation:F2023C00190
Segment Type: reg
Provision Reference: reg 9B (pt 26/41)
Character Range: 180535–183624

necessary to revisit the proposals in ED 293 in relation to for-profit private sector entities that were not yet required to apply AASB 2020-2, as well as for the types of entities referred to in paragraph BC4(b).  Consequently, ED 302 was issued in June 2020, which as noted in paragraph BC2 led to the development of this Standard.

Issue of Exposure Draft ED 302

     BC13            The significant issues considered by the Board in developing ED 302 that are pertinent to this Standard are addressed in this section.

Scope

     BC14            When considering which for-profit private sector entities should be required to make the ED 302 proposed disclosures,[25] the Board considered whether the disclosures should be required by:

          (a)                    only those entities preparing SPFS that are directly subject to AASB 1054 Australian Additional Disclosures (for example, an entity with a direct reference to application of AASB 1054 in its trust deed); or

          (b)                   those for-profit private sector entities that are required by legislation (eg Part 2M.3 of the Corporations Act 2001 or other legislation) to prepare financial statements that comply with either AAS or accounting standards, and other for-profit private sector entities that are required only by their constituting document or another document to prepare financial statements that comply with AAS provided the relevant document was created before 1 July 2021 and not amended on or after that date; or

          (c)                    those entities referred to in option (b), with a threshold to limit the requirements to those entities that would meet the requirements to be considered a large proprietary company under the Corporations Act; or

          (d)                   those entities referred to in option (b), but only where their SPFS state they have been prepared in compliance with AAS.

     BC15            For the purposes of ED 302, the Board decided to propose option (b), noting:

          (a)                    option (a) would not achieve the objective of the proposed amendments as it would not include all entities with a non-legislative requirement to prepare financial statements that comply with AAS;

          (b)                   option (c) was not the most appropriate alternative as it would be relatively complex to apply.  It would also add to the overall complexity of AAS because it would result in exemptions for certain entities that are already subject to exemptions (in particular, the scope exemptions from the removal of SPFS for for-profit private sector entities made in AASB 2020-2);

          (c)                    option (d) was not the most appropriate alternative for similar reasons to option (c).  In addition, the Board was concerned this option might allow any resulting disclosure requirements to be readily circumvented simply through non-disclosure of compliance with AAS, despite an entity's constituting document requiring compliance with AAS without explicitly requiring disclosure of compliance with AAS; and