Document ID: chunk:federal_register_of_legislation:F2023C00190:reg:3:p1
Version: federal_register_of_legislation:F2023C00190
Segment Type: reg
Provision Reference: reg 3 (pt 1/3)
Character Range: 77734–81241

3  Not-for-profit private sector entities preparing special purpose financial statements                                                                                                                                                                                                                     Not in scope – see paragraph 9A for similar requirements

     IG17             The following flowchart summarises some of the key decisions in determining how to apply the disclosure requirements in paragraphs 9C(d)-(f) of this Standard in relation to special purpose financial statements.

     IG18             In disclosing the information required by paragraphs 9C(d)-(f) of this Standard, entities are not expected to provide quantitative information, or reconciliations, where accounting policies do not comply with all the recognition and measurement requirements in Australian Accounting Standards.

Chart 2 – For-profit private sector entities preparing special purpose financial statements (paragraphs 9C(d)-(f))

Disclose the basis on which the decision to prepare special purpose financial statements was made

     IG19             Paragraph 9C(a) requires an entity to disclose the reasons why the preparation of special purpose financial statements was considered appropriate. It is not sufficient for the entity to merely disclose that it is 'not a reporting entity'; the entity must articulate the reasons why it concluded general purpose financial statements were not required.  For example, the reason could be that in the opinion of the directors of the entity all financial statement users are in a position to require the entity to prepare reports tailored to their particular information needs.

Disclosure of accounting policies

     IG20             For-profit private sector entities within the scope of this Standard that are preparing special purpose financial statements are required to include sufficient information to enable users of those special purpose financial statements to obtain an understanding of the material accounting policies applied in the preparation of the special purpose financial statements, including changes in those policies.

     IG21             The disclosure of this information may be required by another Australian Accounting Standard, such as AASB 101 Presentation of Financial Statements or AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors.  Where this is the case, the entity also complies with the requirements of the other Standard.

Accounting policy assessment step 1:  Compliance at the individual accounting policy level

     IG22             Paragraph 9C(e) of this Standard requires an entity, for each material accounting policy applied and disclosed in the financial statements, to first assess whether that policy complies or does not comply with the recognition and measurement requirements in Australian Accounting Standards (except for AASB 10 and AASB 128).

     IG23             Using those assessments:

          (a)                    an entity discloses for those policies not complying with the recognition and measurement requirements in Australian Accounting Standards (except for AASB 10 and AASB 128), an indication of how it does not comply; or

          (b)                   if the material accounting policies applied and disclosed in the financial statements comply with the recognition and measurement requirements in Australian Accounting Standards (except for AASB 10 and AASB