Document ID: chunk:federal_register_of_legislation:F2023C00381:reg:25:p4
Version: federal_register_of_legislation:F2023C00381
Segment Type: reg
Provision Reference: reg 25 (pt 4/47)
Character Range: 28421–31788

the IFRS text (eg Australian terminology and punctuation).
BC3               At its May 2015 meeting, the Board decided to revise Australian Accounting Standards that incorporate IFRSs to minimise Australian-specific wording even further.  Therefore, because IFRSs do not contain such application paragraphs, the application paragraphs that were previously in each Australian Accounting Standard were moved to this Standard.  In doing so, the application requirements have not been amended.  These application paragraphs also do not affect requirements in other Standards that specify that certain paragraphs apply only to certain types of entities.
BC4               For consistency, the application paragraphs of Australian-specific Standards have also been included in this Standard, without amendment.  When those Standards are amended for other reasons, their application paragraphs are expected to be removed.

Basis for Conclusions on AASB 2019-1
This Basis for Conclusions accompanies, but is not part of, AASB 1057.  The Basis for Conclusions was originally published with AASB 2019-1 Amendments to Australian Accounting Standards – References to the Conceptual Framework.

Introduction

     BC1               This Basis for Conclusions summarises the Australian Accounting Standards Board's considerations in reaching the conclusions in this Standard.  It sets out the reasons why the Board developed the Standard, the approach taken to developing the Standard and the key decisions made.  In making decisions, individual Board members gave greater weight to some factors than to others.

Reasons for issuing this Standard

     BC2               The International Accounting Standards Board (IASB) issued a revised Conceptual Framework titled Conceptual Framework for Financial Reporting (the revised Conceptual Framework) in March 2018.

     BC3               The Conceptual Framework describes the objective and concepts for general purpose financial reporting under International Financial Reporting Standards (IFRS Standards).  Its purpose is to assist standard-setters to develop Standards that are based on consistent concepts, and to help preparers develop consistent accounting policies when no Standard applies to a particular transaction or event, or when a Standard allows a choice of accounting policy.  It also assists anyone looking to understand and interpret the Standards.

     BC4               Making the IASB's revised Conceptual Framework applicable in Australia is essential.  In accordance with the Financial Reporting Council's strategic direction to the Board and the Board's strategic objectives, the Board should:
(a) maintain compliance with IFRS Standards for publicly accountable entities; and
(b) use IFRS Standards as a base for determining the reporting requirements for all other entities, modified as appropriate, in accordance with the AASB's standard-setting frameworks for for-profit and not-for-profit entities.

     BC5               Implementation of the revised Conceptual Framework in Australia is challenging due to the so-called 'reporting entity clash'.  This reflects the difference between the definition of a 'reporting entity' in the IASB's revised Conceptual Framework and the current definition in Australian Accounting Standards (including Interpretations).  The reporting entity definition in the