Document ID: chunk:federal_register_of_legislation:F2025C00209:reg:221:p55
Version: federal_register_of_legislation:F2025C00209
Segment Type: reg
Provision Reference: reg 221 (pt 55/73)
Character Range: 314142–317235

Appendix E of AASB 1053 applies only to for-profit private sector entities.

Finalisation of ED 306 proposals

 1.             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 306.

Feedback from respondents on ED 306

 1.             The Board received six formal comment letters on ED 306. The feedback received indicated that, in general, all respondents were supportive of the proposals. However, some respondents suggested that:

           1.                     the Board should adopt a sector-neutral approach to transition relief. In their view, NFP entities should have the same transition relief as for-profit private sector entities whether they are transitioning from SPFS, Tier 1 or Tier 2 RDR and preparing Tier 2 SD for the first time; and

           2.                    consequently, AASB 1060 may not be the best place for the proposed amendments, given their support for additional transitional relief for NFP entities.

 1.             The Board considered this feedback and decided:

           1.                     to extend the relief from presenting comparative information for those disclosures not previously made to also include transition from Tier 1 to Tier 2 SD. This was because both Tier 1 and Tier 2 SD are prepared on the same recognition and measurement basis and there would be very few, if any, disclosures for which comparative information was not presented. Extending the relief would therefore have a limited impact on comparability and would provide consistent optional relief for NFP entities transitioning between types of general purpose financial statements;

           2.                    not to provide any relief to NFP entities transitioning from SPFS at this time. As noted in paragraphs BC7 and BC8, NFP entities are not currently required to transition from SPFS. The Board did however reaffirm that it intends to consider specific transition relief for NFP entities, including those that may be required to transition from SPFS, as part of its NFP Private Sector Financial Reporting Framework project; and

           3.                     AASB 1060 remained the most appropriate location for these amendments. Although the optional relief in this Standard no longer applies solely to NFP entities transitioning between Tier 2 frameworks, the Board heard no compelling reasons to relocate the amendments from AASB 1060. NFP entities applying the optional relief will be transitioning to Tier 2 SD. Therefore, including the relief in the applicable Tier 2 Standard (AASB 1060) remained appropriate.

Effective date and early application

 1.             To ensure consistency between for-profit private sector entities and NFP entities, it was necessary to align the effective date of this Standard with the effective date of the equivalent relief available to for-profit private sector entities. For this reason, the Board decided that this Standard would be effective for annual periods beginning