Document ID: chunk:federal_register_of_legislation:F2025C00209:reg:221:p42
Version: federal_register_of_legislation:F2025C00209
Segment Type: reg
Provision Reference: reg 221 (pt 42/73)
Character Range: 278660–281611

proposing amendments to AASB 1060

     BC2 In June 2020, the Board issued AASB 2020-4 Amendments to Australian Accounting Standards – Covid-19-Related Rent Concessions to make amendments to AASB 16 Leases to provide lessees with an optional exemption from assessing whether a COVID-19-related rent concession is a lease modification. The amendments added a new paragraph 60A to AASB 16, which requires an entity applying the practical expedient to disclose:

          (a) that it has applied the practical expedient to all rent concessions that meet the conditions in paragraph 46B of AASB 16 or, if not applied to all such rent concessions, information about the nature of the contracts to which it has applied the practical expedient; and

          (b) the amount recognised in profit or loss for the reporting period to reflect changes in lease payments that arise from rent concessions to which the lessee has applied the practical expedient in paragraph 46A of AASB 16.

     BC3 The amendments further provide relief from providing the information required by AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors paragraph 28(f) in the reporting period in which the lessee first applies the amendments made by AASB 2020-4 through paragraph C20B of AASB 16.

     BC4 The Board considered whether these disclosures should also apply to entities that intend to adopt AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities. The Board referred to the principles used when developing the disclosures in AASB 1060, which are described in paragraphs BC34–BC50 in the Basis for Conclusions to that Standard. In particular:

          (a) the disclosures in the IFRS for SMEs Standard should be retained where the recognition and measurement (R&M) requirements and options are the same or similar in the IFRS for SMEs Standard and full IFRS Standards (and therefore Australian Accounting Standards);

          (b) where R&M options or treatments in the IFRS for SMEs Standard are not available in full IFRS Standards (and therefore Australian Accounting Standards), the related IFRS for SMEs disclosures are removed; and

          (c) where the R&M principles in full IFRS Standards (and therefore Australian Accounting Standards) are significantly different from those in the IFRS for SMEs Standard or certain topics are not addressed in the IFRS for SMEs Standard, disclosures may be added. To determine whether to add any disclosures, the Board refers to the principles applied by the IASB in developing the disclosures in the IFRS for SMEs Standard, which are set out in paragraph BC8 below.

     In addition to applying these principles, the Board also considers whether to add disclosures to address matters of public policy or to reflect Australian-specific issues.

     BC5 Based on these principles, the Board agreed to use the following approach when