Document ID: chunk:federal_register_of_legislation:F2023C00381:reg:25:p36
Version: federal_register_of_legislation:F2023C00381
Segment Type: reg
Provision Reference: reg 25 (pt 36/47)
Character Range: 123793–126874

AASB 1053, consisting of full R&M, including consolidation and equity accounting (where applicable) with reduced disclosures from each applicable AAS; or

          (b)                   Specified Disclosure Requirements (SDR) – A new Tier 2 GPFS framework that would consist of full R&M including consolidation and equity accounting (where applicable), however with specified disclosures from only some AAS.

     The Board subsequently decided that neither RDR nor SDR were appropriate Tier 2 disclosure frameworks. The Board instead decided to develop another alternative, the Simplified Disclosures Framework, as enacted by AASB 1060 and explained further in paragraph BC98.

Other options considered in ITC 39

     BC57            ITC 39 considered four other options for implementing the RCF in Australia. However, after considering constituent comments, the Board decided not to pursue them, as explained below:

          (a)                    Option 2 – Operate with two conceptual frameworks. This option would implement the RCF for publicly accountable for-profit entities and other entities voluntarily reporting compliance with IFRS Standards. It would also retain the existing Conceptual Framework for all other entities. The Board decided not to pursue this option as it requires two conceptual frameworks indefinitely, which would likely lead to the development of inconsistent accounting policies between entities preparing financial statements under the existing Conceptual Framework and entities preparing financial statements under the RCF. Also this option does not solve either the clash of the reporting entity concepts or the SPFS problem.

          (b)                   Option 3 – Implement the RCF for all entities when it first becomes applicable to maintain compliance with IFRS Standards and IFRS Standards as a base for Australian Accounting Standards. This option would result in a single conceptual framework for all entities in the short term, remove the Australian reporting entity concept and the ability of an entity to prepare SPFS as a non-reporting entity when they are required to comply with AAS from 1 January 2020. Option 3 would see an increase in regulatory burden, particularly for NFP entities, as there would be a considerable step up for many entities transitioning to Tier 2 GPFS framework given the number of entities preparing SPFS and the short timeframe for transition to GPFS. The Board was concerned that this option would not provide entities with enough time for transition.

          (c)                    Option 4 – Retain the existing Conceptual Framework, the Australian reporting entity concept and the ability of an entity to prepare SPFS as a non-reporting entity where they are required to comply with AAS. Under this option compliance with AAS might not result in compliance with IFRS Standards after 1 January 2020.

          (d)                   Option 5 – Implement the RCF from 1 January 2020 when it first becomes applicable to maintain compliance with IFRS Standards and keep IFRS Standards as a base