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 1/4)
Character Range: 24242–27780

3  Other not-for-profit entities, including not-for-profit public sector entities, entities not specified above and entities not required to comply with AASB 1054 by legislation or otherwise                                                                                                                                                                                      Not in scope

     IG3                 The following flowchart summarises some of the key decisions in determining how to apply the disclosure requirements in paragraph 9A of this Standard in relation to special purpose financial statements.

     IG4                 In disclosing the information required by paragraph 9A 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 1 – Not-for-profit private sector entities preparing special purpose financial statements

Disclosure of accounting policy information

     IG5                 Not-for-profit private sector entities required to apply AASB 1054 in their special purpose financial statements (including those lodged with ASIC or the ACNC), whether consolidated or unconsolidated, are also required to apply AASB 101 and AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, including:

          (a)                    paragraph 15 of AASB 101, which requires the fair presentation of financial statements;

          (b)                   paragraphs 10-12 of AASB 108, which address the selection of accounting policies in the absence of an Australian Accounting Standard that specifically applies to a transaction, other event or condition; and

          (c)                    paragraph 117 of AASB 101, which requires disclosure of material accounting policy information comprising the measurement basis (or bases) and the other accounting policies used that are relevant to an understanding of the financial statements.
As a result, sufficient information to enable users of special purpose financial statements to obtain an understanding of the accounting policies adopted is required to be disclosed.  This includes where an entity has selected and applied accounting policies that differ from the recognition and measurement requirements in Australian Accounting Standards (except for requirements set out in AASB 10 Consolidated Financial Statements or AASB 128 Investments in Associates and Joint Ventures).

Accounting policy assessment step 1:  Assessing compliance with the recognition and measurement requirements in Australian Accounting Standards (except for requirements set out in AASB 10 or AASB 128) at the accounting policy level

     IG6                 Paragraph 9A(c) of this Standard requires an entity, for each material accounting policy applied and disclosed in the financial statements to first assess, based on already known information, whether that policy complies with the recognition and measurement requirements in Australian Accounting Standards (except for requirements set out in AASB 10 or AASB 128), does not comply, or compliance has not been assessed.  An entity is not expected to perform a detailed assessment of recognition and measurement differences if that has not already been performed.

     IG7                 Using those assessments:

          (a)                    an entity discloses for those policies not complying with the recognition and