Document ID: chunk:federal_register_of_legislation:F2023C00381:reg:25:p15
Version: federal_register_of_legislation:F2023C00381
Segment Type: reg
Provision Reference: reg 25 (pt 15/47)
Character Range: 63928–67001

not consider Option 3 or Option 4 to be viable, as both options would result in two sets of Australian Accounting Standards, which would be complex to manage (for example future compilations) and would present a much greater level of confusion for stakeholders in knowing which set of Australian Accounting Standards they should use.  The existence of two sets of Australian Accounting Standards would also be challenging when implementing Phase 2.

Phase 1 approach

     BC42            Implementation of Option 1 in Phase 1 requires identification of all references to the existing Conceptual Framework in each Australian pronouncement and all references to the term reporting entity.

     BC43            Implementation of two conceptual frameworks and one set of Australian Accounting Standards requires all references to the existing Conceptual Framework to be updated as references to the revised Conceptual Framework, with limited exceptions, for those entities applying the revised Conceptual Framework.  For all entities that are not applying the revised Conceptual Framework, references to the existing Conceptual Framework need to be retained.

     BC44            The Board determined the most effective way to achieve this required:
(a) updating the basic text of all Australian Accounting Standards to reflect the IASB's amendments consequential to the revised Conceptual Framework, that is, all references to the existing Conceptual Framework were replaced with a reference to the revised Conceptual Framework, with limited exceptions.  The basic text of all Australian Accounting Standards applies to entities applying the revised Conceptual Framework.  This ensures that compliance with Australian Accounting Standards (Tier 1) by these entities continues to result in compliance with IFRS Standards;
(b) adding an AusCF paragraph or footnote in each Australian Accounting Standard that was updated per paragraph (a).  The AusCF paragraph or footnote retained the same number, but was given an AusCF prefix.  AusCF paragraphs retained the references to the existing Conceptual Framework and are applicable only to entities applying the existing Conceptual Framework; and
(c) inserting an AusCF1 paragraph into each Australian Accounting Standard that contained a reference to the existing Conceptual Framework or contained the term 'reporting entity'.  Two versions of paragraph AusCF1 were used:
(i) one version states that the requirements of the AusCF paragraphs and footnotes added to the Standard apply only to those entities that are applying the existing Conceptual Framework.  It also directs entities applying the existing Conceptual Framework to AASB 1057 and SAC 1 for the definition of the term 'reporting entity'; and
(ii) a second version is used where no other AusCF paragraphs or footnotes were added to the Standard but the Standard contains the term 'reporting entity'.  This version merely directs entities applying the existing Conceptual Framework to AASB 1057 and SAC 1 for the definition of the term 'reporting entity'.

     BC45