Document ID: chunk:federal_register_of_legislation:F2023C00381:reg:8:p25
Version: federal_register_of_legislation:F2023C00381
Segment Type: reg
Provision Reference: reg 8 (pt 25/28)
Character Range: 247344–250357

of AASB 1057 is extended to state that it will apply to for-profit private sector entities that are required by legislation to comply with either AAS or accounting standards, and other for-profit private sector entities that are required only by their constituting document or another document to comply with AAS (provided that the relevant document was created or amended on or after 1 July 2021). The application paragraphs of the other Standards and Interpretations, as set out in AASB 1057, are extended similarly.

     BC161        In respect of entities that voluntarily choose to prepare GPFS, the Board proposed in ED 297 to permit such entities to apply either the revised Conceptual Framework or the Framework for the Preparation and Presentation of Financial Statements. However, many respondents disagreed with this proposal, and preferred that voluntary GPFS preparers are restricted to applying only the revised Conceptual Framework. In response, the Board decided to require entities that voluntarily prepare GPFS to apply the revised Conceptual Framework once it becomes applicable. The Board considered that allowing either framework for voluntary GPFS preparation could perpetuate problems that this Standard intended to resolve, such as maintaining two conceptual frameworks (which will anyway occur in the medium term due to other exemptions), creating confusion about what compliance with AAS means, and two entities preparing GPFS may adopt different accounting policies for like transactions. Allowing either framework also means that preparing GPFS would not necessarily lead to IFRS compliance.

     BC162        The AusCF paragraphs in AAS that were introduced in AASB 2019-1 do not need to be amended in this Standard. The definition of AusCF entities as NFP entities and for-profit entities that are not applying the Conceptual Framework, as introduced in AASB 2019-1, will continue to apply, but with a limited scope such that those paragraphs would only be relevant to FP entities not within the scope of this Standard. The phase 2 amendments reduce the set of for-profit entities that are not applying the Conceptual Framework.
        References in this Standard to 'legislation' mean legislation of a government in Australia.
  [1]  Statement of Accounting Concepts SAC 1 Definition of the Reporting Entity
  [2]  Chapter 3 Financial Statements and the Reporting Entity
  [3]  AASB 1057 Application of Australian Accounting Standards
  [4] AASB Staff Paper Enhancing the revised Conceptual Framework and replacing Special Purpose Financial Statements – For-profit User and Preparer Survey Results (December 2018). 'Primary users' refers to users that meet the definition of primary users in AASB Practice Statement 2 Making Materiality Judgements (ie investors (and analysts), lenders and other creditors) and all other respondents are referred to as 'other users'.
  [5]  In this Basis for Conclusions, the reference to AAS in this phrase also includes accounting standards