Document ID: chunk:federal_register_of_legislation:F2024L00378:body:0:p5
Version: federal_register_of_legislation:F2024L00378
Segment Type: other
Provision Reference: 
Character Range: 11964–15257

action is required unless:
          (a)                    the disclosures address a matter of public policy;
          (b)                   the disclosures are of particular relevance in the Australian environment; or
          (c)                    the amendments clarify or reduce existing disclosure requirements in full IFRS Standards.
     BC10            The Board noted that the disclosure requirements were added to IFRS Standards to address users' need for information relating to an entity's liquidity position and cash flow. The feedback from Australian users reinforced the need for these disclosures.
     BC11            Although the Board had not received any feedback on whether these disclosures were of similar importance to users of Tier 2 financial statements, in deciding whether to propose adding disclosures about supplier finance arrangements to AASB 1060 the Board considered the principles it used when developing AASB 1060 and subsequently when considering whether to add to or amend the disclosure requirements.
     BC12            When developing and considering amendments to AASB 1060, the Board considers that information about short-term cash flows and obligations, commitments or contingencies, liquidity and solvency, measurement uncertainties, accounting policy choices and disaggregation of amounts presented in the financial statements would be particularly important to the users of Tier 2 financial statements.
     BC13            Therefore, the Board proposed amendments to AASB 1060 to require Tier 2 entities to disclose information relating to their supplier finance arrangements. The amendments would require a Tier 2 entity to include in its financial statements the same specific disclosures that AASB 2023-1 requires in the financial statements of entities applying Tier 1 reporting requirements. The Board considered the proposed disclosures would provide additional information about the cash flows, liquidity and solvency of Tier 2 entities.

Finalisation of ED 328 proposals
     BC14            Following the consultation period and after considering the comments received, the Board decided to proceed with issuing this Standard, with minimal changes from the proposals in ED 328. The Board noted the disclosures would need to be made only where material to the entity.

     Feedback from respondents on ED 328 and international alignment
     BC15            The Board received one formal comment letter on ED 328. The feedback received indicated that, in general, the stakeholder was supportive of the proposals. However, the stakeholder provided additional feedback.
     BC16            The stakeholder suggested that the disclosure objective in proposed paragraph 119A in ED 328 was unnecessary. The stakeholder observed that the IASB has not generally included disclosure objectives in the IFRS for SMEs Accounting Standard and, therefore, the Board generally has also not previously included disclosure objectives in AASB 1060. It also observed that not including disclosure objectives is consistent with the approach proposed by the IASB in its Subsidiaries without Public Accountability: Disclosures project.
     BC17            The Board noted that the IASB has tentatively decided not to include the disclosure objective