Document ID: chunk:federal_register_of_legislation:F2023L01377:body:0:p2
Version: federal_register_of_legislation:F2023L01377
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exchangeable.
The Standard also amends AASB 121 to extend the exemption from complying with the disclosure requirements of AASB 121 for entities that apply AASB 1060 to ensure Tier 2 entities are not required to comply with the new disclosure requirements in AASB 121 when preparing their Tier 2 financial statements.

     Application date
This Standard applies to annual periods beginning on or after 1 January 2025. Earlier application is permitted for annual periods beginning before 1 January 2025.

Accounting Standard AASB 2023-5
The Australian Accounting Standards Board makes Accounting Standard AASB 2023-5 Amendments to Australian Accounting Standards – Lack of Exchangeability under section 334 of the Corporations Act 2001.
                      Keith Kendall
Dated 9 October 2023  Chair – AASB

Accounting Standard AASB 2023-5
Amendments to Australian Accounting Standards – Lack of Exchangeability

Objective
This Standard amends:
     (a)                    AASB 1 First-time Adoption of Australian Accounting Standards (July 2015);
     (b)                   AASB 121 The Effects of Changes in Foreign Exchange Rates (August 2015); and
     (c)                    AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-For-Profit Tier 2 Entities (March 2020);
as a consequence of the issuance of International Financial Reporting Standard Lack of Exchangeability (Amendments to IAS 21) by the International Accounting Standards Board (IASB) in August 2023.

Application
The amendments set out in this Standard apply to entities and financial statements in accordance with the application of the other Standards set out in AASB 1057 Application of Australian Accounting Standards.
This Standard applies to annual periods beginning on or after 1 January 2025.
This Standard may be applied to annual periods beginning before 1 January 2025.  When an entity applies this Standard to such an annual period, it shall disclose that fact.
This Standard uses underlining, striking out and other typographical material to identify some of the amendments to a Standard, in order to make the amendments more understandable. However, the amendments made by this Standard do not include that underlining, striking out or other typographical material. Ellipses (…) are used to help provide the context within which amendments are made and also to indicate text that is not amended.

Amendments to AASB 1
Paragraphs 31C and D27 are amended and paragraph 39AI is added. New text is underlined and deleted text is struck through.

Presentation and disclosure
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Explanation of transition to Australian Accounting Standards
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Use of deemed cost after severe hyperinflation
31C If an entity elects to measure assets and liabilities at fair value and to use that fair value as the deemed cost in its opening Australian-Accounting-Standards statement of financial position because of severe hyperinflation (see paragraphs D26–D30), the entity's first Australian-Accounting-Standards financial statements shall disclose an explanation of how, and why, the entity had, and