Document ID: chunk:federal_register_of_legislation:F2023C00190:reg:9b:p37
Version: federal_register_of_legislation:F2023C00190
Segment Type: reg
Provision Reference: reg 9B (pt 37/41)
Character Range: 209996–213070

the SPFS to their own information needs and therefore do not need a standard-setter or regulator to specify the accounting policies or require disclosure of the information for them."

     BC48            The Board considered this view in light of its decision relating to disclosures in SPFS of not-for-profit private sector entities as reflected in AASB 2019-4.  The Board acknowledged that the appropriateness of the justifications noted in the Basis for Conclusions on AASB 2019-4 (in particular paragraph BC40) for rejecting these respondents' views are less apparent for entities within the scope of this Standard, but nonetheless concluded this Standard is justifiable under the Framework.  The Framework notes the Board does not set R&M requirements for SPFS.  In this Standard, the Board is adding limited disclosure requirements for SPFS, in the same way as it did for not-for-profit private sector entities under AASB 2019-4.  This Standard does not set R&M requirements for SPFS.

Overall justification for this Standard

     BC49            In deciding to issue this Standard, the Board noted the anecdotal feedback it had received that this Standard is unreasonable because many references to AAS historically were included in the constituting documents of entities without those entities having a full appreciation of the implications of the reference being ambulatory rather than static.  However, the Board concluded this Standard is justified for the reasons indicated in paragraphs BC3-BC12 and on the basis the Board's acknowledgement of the history of AAS references in constituting documents is the main reason the Board decided on only contextual disclosures for SPFS rather than requiring a more onerous transition to GPFS by entities within the scope of the Standard.  Furthermore, overall, the Board concluded the requirements in this Standard are commensurate with the evidence from the research outlined in paragraphs BC5-BC8.  Additional research would unduly delay the project and would only be justified if the requirements were to be more onerous, such as mandating R&M requirements.

     BC50            Paragraph 18 of the AASB For-Profit Entity Standard-Setting Framework (July 2021) states: "Enforcement of the preparation of financial statements and compliance with Accounting Standards is the responsibility of other regulators ...  It is not the responsibility of the AASB." Consistent with that, the Board noted its role and expertise in relation to this Standard is to determine the appropriate accounting framework and accounting standards that should apply where financial statements are required by constituting or other documents to comply with AAS.  Requiring additional disclosures in SPFS to provide greater transparency and comparability 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.