Document ID: chunk:federal_register_of_legislation:F2025C00209:reg:221:p45
Version: federal_register_of_legislation:F2025C00209
Segment Type: reg
Provision Reference: reg 221 (pt 45/73)
Character Range: 286792–289608

were warranted because of the special circumstances leading to the practical expedient in AASB 16. The amendments do not alter the fact that disclosure of variable lease payments is not required under the IFRS for SMEs Standard and therefore also not required under AASB 1060.

Tier 2 Reduced Disclosure Requirements

     BC13 The Board also considered whether the new disclosures in AASB 16 should be reduced for entities reporting under the Tier 2 Reduced Disclosure Requirements (RDR) framework (Tier 2 RDR entities). In doing so, the Board referred to the 'user need' and 'cost-benefit' principles set out in the 'Tier 2 Disclosure Principles' document of the RDR decision-making framework. These principles were also based on the principles applied by the IASB in developing the disclosures in the IFRS for SMEs Standard and are the same as those summarised in paragraph BC8.

     BC14 The considerations in paragraphs BC9–BC12 are therefore also relevant for Tier 2 RDR entities. Disclosure of the accounting policies applied by the entity is already required under AASB 101 Presentation of Financial Statements paragraph 117(b), and without the relief introduced by paragraph C20B of AASB 16, entities that had previously applied AASB 16 would need to disclose the impact of the change in accounting policy on each financial statement line item affected.

     BC15 On that basis, the Board took the view that the additional disclosures introduced by AASB 16 paragraph 60A should not be reduced for Tier 2 RDR entities and the disclosure relief in paragraph C20B should be available to such entities. This approach would mean that no further changes would need to be made to AASB 16 in relation to Tier 2 RDR.

Issue of ED 303 Covid-19-Related Rent Concessions: Tier 2 Disclosures

     BC16  The Board's proposals were exposed for public comment in July 2020 through Exposure Draft ED 303 Covid-19-Related Rent Concessions: Tier 2 Disclosures. Noting that the practical expedient added to AASB 16 is already available for early adoption as at 30 June 2020, the Board agreed on a short exposure period of 14 days from the day of issue of the ED. The Board received feedback through two submissions and discussions with stakeholders, which were supportive of the proposed amendments. The Board therefore decided to finalise and approve the amendments as proposed.

Operative date and early application

     BC17 While the amendments made by AASB 2020-4 are effective for annual reporting periods beginning on or after 1 June 2020, the Board noted that AASB 1060 does not become operative until annual reporting periods beginning on or after 1 July 2021. The specified operative date for the amendments made by this Standard therefore could not be earlier than 1 July 2021. However, the Board considered that