Document ID: chunk:federal_register_of_legislation:F2022C00487:reg:36:p12
Version: federal_register_of_legislation:F2022C00487
Segment Type: reg
Provision Reference: reg 36 (pt 12/12)
Character Range: 55105–57241

AASB to allowing first-time adopters to 'grandfather' previous GAAP when transitioning to Australian Accounting Standards.

Dissenting opinion

Dissent of Peter Gibson and Steve Mitsas
DO1 AASB 14 Regulatory Deferral Accounts is consistent with the AASB's policy of incorporating IFRSs into Australian Accounting Standards. While we generally support that policy, from a 'first principles' basis we do not agree with the key approach in AASB 14 that allows the continuation of accounting policies that are inconsistent with existing recognition and measurement requirements in other Australian Accounting Standards for late first-time adopters of Australian Accounting Standards.
DO2 Despite AASB 14 being described as an interim standard, it risks perpetuating differences in the recognition and measurement of assets and liabilities, and detracts from the comparability of financial statements, across similar entities. On this basis, we do not support adoption of AASB 14.

[1] In 2013, the AASB amended the Framework for the Preparation and Presentation of Financial Statements (as identified in AASB 1048 Interpretation of Standards) (the Framework). The term "faithful representation", which was used in the Framework from 2013 and is also used in the Conceptual Framework for Financial Reporting issued in 2019, encompasses the main characteristics that the Framework called "reliability". The requirement in paragraph 13 of this Standard is based               on the requirements of AASB 108, which retains the term "reliable".
    AusCF1 Notwithstanding footnote 1, in respect of AusCF entities, in December 2013, the AASB amended the Framework for the Preparation and Presentation of Financial Statements (as identified in AASB 1048 Interpretation of Standards). The term "faithful representation" encompasses the main characteristics that the previous version of the Framework called "reliability". The requirement in paragraph 13 of this Standard is based on the requirements of AASB 108, which retains the term               "reliable"                                                                                    .