Document ID: chunk:federal_register_of_legislation:F2025C00209:reg:221:p31
Version: federal_register_of_legislation:F2025C00209
Segment Type: reg
Provision Reference: reg 221 (pt 31/73)
Character Range: 248406–251169

in the IFRS for SMEs Standard, the Board noted that the accounting for all leases held by lessees under AASB 16 is broadly similar to the the accounting for finance leases in the IFRS for SMEs Standard. As a consequence, the Board considered that the disclosures for finance leases should be used as a basis, and only be adapted for different terminology used in AASB 16 (eg referring to variable lease payments instead of contingent rent).

      3.             The Board also decided in principle to adapt the current disclosures for operating leases to apply to short-term leases and leases of low value assets that have not been recognised as right-of-use assets per the exemption in paragraph 6 of AASB 16. However, the Board noted that the disclosures in the IFRS for SMEs Standard about operating lease commitments are more extensive than what is required under paragraphs 55 and 60 of AASB 16. AASB 16 is a recent Standard that was finalised after the IFRS for SMEs Standard was developed. As noted in paragraph BC40, the Board considered that where the IASB has removed disclosures from full IFRS after the IFRS for SMEs Standard was finalised, similar reductions in disclosures should also be carried over to the new Tier 2 Standard. Therefore, the Board decided to replace the disclosures in the IFRS for SMEs Standard with the relevant disclosures from AASB 16.

      4.             In considering the R&M differences between AASB 15 and Section 23 Revenue in the IFRS for SMEs Standard, the Board noted that while the differences may affect the amount and timing of the revenue recognised, under both AASB 15 and Section 23, revenue is either recognised at a point in time or over time. On that basis, the Board decided to adapt the disclosures in the IFRS for SMEs Standard to reflect the different terminology used in AASB 15 but without adding unnecessary details. For example, the requirement to disclose specified categories of revenue has been replaced with a requirement to disaggregate revenue into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The reference to "methods used to determine the stage of completion" has been changed to "methods used to recognise revenue for performance obligations that are satisfied over time".

      5.             In considering the difference between AASB 123 Borrowing Costs and Section 25 Borrowing Costs in the IFRS for SMEs Standard, the Board noted that the IFRS for SMEs Standard does not permit the capitalisation of borrowing costs and therefore does not require any additional disclosures. As this is an R&M difference, the Board decided to require disclosure of the amount of capitalised borrowing costs on the