Document ID: chunk:federal_register_of_legislation:F2022L01041:reg:4:p18
Version: federal_register_of_legislation:F2022L01041
Segment Type: reg
Provision Reference: reg 4 (pt 18/18)
Character Range: 93763–96136

deferred the proposed operative date by 12 months. In making this decision the Board acknowledged anecdotal feedback that some issues faced by small entities within the scope of this Standard might be more complex than originally thought. After the issuance of ED 302, the Board became aware that in some instances, for example when applying AASB 15 Revenue from Contracts with Customers or AASB 119 Employee Benefits, it may be difficult for smaller entities to determine whether they are complying with the R&M requirements in AAS, such as an entity calculating employee benefits (eg long service leave) when they have staff with long tenure.
     BC52            Consistent with the Board's view in paragraph BC34, the Board concluded deferring the proposed operative date by 12 months (with early adoption allowed) would give entities within the scope of this Standard enough time to prepare for the implementation of the disclosures. It would also be a way for the Board to address the fact that the economic impact of COVID-19 has been significant, is ongoing, and could not have been predicted when issuing ED 302 and proposing an operative date.
     BC53            Given subsequent delays in finalising this Standard, the Board revised the operative date to periods ending on or after 30 June 2022, which in substance covers the same periods as periods beginning on or after 1 July 2021. Short periods beginning on or after 1 July 2021 and ending before 30 June 2022 would not be covered, but these would be very unusual and therefore of limited significance in aggregate. Earlier application is permitted.

[1]  AASB 117 was superseded by AASB 16 for periods beginning on or after 1 January 2019.
[2]  AASB 118 was superseded by AASB 15 for for-profit entities for periods beginning on or after 1 January 2018.
[3]  Public sector entities were excluded from the scope of this broad project because the Board had a separate project addressing the public sector financial reporting framework.
[4]  In relation to for-profit private sector entities, the proposals were developed as an interim measure while the Board continued with its ED 297 proposals.
[5]  With limited exceptions, consistent with transaction neutrality the proposed disclosures in ED 302 for for-profit entities were based on the disclosures specified in AASB 2019-4 for not-for-profit entities.