Document ID: chunk:federal_register_of_legislation:F2023C00190:reg:9b:p38
Version: federal_register_of_legislation:F2023C00190
Segment Type: reg
Provision Reference: reg 9B (pt 38/41)
Character Range: 212786–215594

regarding compliance with the R&M requirements in AAS is consistent with this role.

Effective date

     BC51            The Board initially decided this Standard should be effective for annual reporting periods beginning on or after 1 July 2021, with earlier application permitted.  This effectively 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  [1]  AASB 117 was superseded by AASB 16 for periods beginning on or after 1 January 2019.
  [2]  AASB 118 was superseded by AASB 15 for for-profit entities for periods beginning on or after 1 January 2018.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]  "Reporting entity means an entity in respect of which it is reasonable to expect the existence of users who rely on the entity's general purpose financial statements for information that will be useful to them for making and evaluating decisions about the allocation of resources. A reporting entity can be a single entity or a group comprising a parent and all of its subsidiaries." AASB 1053, Appendix A.
  [4]  A " 'general purpose financial report' means a financial report intended to meet the information needs common to users who are unable to command the preparation of reports tailored so as to satisfy, specifically, all of their information needs".  SAC