Document ID: chunk:federal_register_of_legislation:F2025C00209:reg:221:p26
Version: federal_register_of_legislation:F2025C00209
Segment Type: reg
Provision Reference: reg 221 (pt 26/73)
Character Range: 234556–237469

presentation requirements in AASB 101 and AASB 107 even though these Standards have been replaced in their entirety with AASB 1060 paragraphs 8 to 97. The only exception made relates to the option of not presenting a separate statement of changes in equity as noted in paragraph BC62.

      5.             ED 295 further proposed to replace the presentation requirements of AASB 5 Non-current Assets Held for Sale and Discontinued Operations with those included in the IFRS for SMEs Standard. However, after considering the feedback received on ED 295, the Board decided to amend the proposals to align the presentation requirements in AASB 1060 with those in AASB 5. This will ensure consistency in the presentation of discontinued operations between Tier 1 and Tier 2 entities and is consistent with the overall intention to retain the presentation requirements from full AAS and only adopt the IFRS for SMEs disclosures.

      6.             The Board noted that any future changes made to AAS will be assessed using the above principles, to determine whether and how the changes would require amendments to AASB 1060. Where necessary, amendments to AASB 1060 will be made in time to ensure they are effective at the same time as the amendments to the full AAS. This will ensure AASB 1060 will continue to be appropriately aligned with the requirements of full AAS.

Scope and application to not-for-profit and public sector entities

      1.             While the disclosures in the IFRS for SMEs Standard are developed specifically for for-profit private sector entities, the Board agreed that AASB 1060 should also be made applicable to not-for-profit private sector entities and public sector entities, other than the Australian Government and State, Territory and Local Governments. Making AASB 1060 applicable to all Tier 2 entities, whether for-profit or NFP, will result in an immediate reduction in disclosures compared to the current RDR framework, and NFP private sector entities will be able to benefit from this reduction in disclosures while waiting for legislative action on the ACNC legislative review recommendations and for a revised NFP Financial Reporting Framework to be developed[54]. Similarly, public sector entities will also benefit while consideration is being given to improving public sector financial reporting[55]. The Tier 2 disclosure framework may still be relevant to NFP entities as one of the tiers of reporting for that sector even after a revised NFP Financial Reporting Framework is developed.

      2.             While respondents to ED 295 had suggested deferring the mandatory date of AASB 1060 for NFP entities possibly until the NFP private and public sector financial reporting frameworks have been finalised, the Board decided against different application dates to avoid the confusion for users that would come from having two Tier 2 reporting frameworks in