Document ID: chunk:federal_register_of_legislation:F2023C00381:reg:8:p24
Version: federal_register_of_legislation:F2023C00381
Segment Type: reg
Provision Reference: reg 8 (pt 24/28)
Character Range: 244360–247589

prepare financial statements that comply with AAS to prepare SPFS and require them to prepare GPFS instead;

          (d)                   considering whether it was necessary to provide transitional relief in addition to that currently available under AASB 1 and AASB 108 with the objective of minimising any undue costs in relation to both the transition from SPFS to GPFS and the associated disclosure requirements; and

          (e)                    a consideration of matters relevant to Regulation Impact Statement (RIS) requirements.

Amendments required to implement Phase 2

     BC157        As noted in paragraph BC54, in May 2019 the Board made AASB 2019-1 to implement Phase 1 of the Board's phased approach to implementing the IASB's RCF in Australia, limiting the application of the Board's Conceptual Framework for Financial Reporting (Conceptual Framework) to for-profit private sector entities with public accountability that are required by legislation to prepare financial statements that comply with AAS.

     BC158        In this Standard, to facilitate the implementation of Phase 2, the following amendments are made:

          (a)                    the applicability of the Conceptual Framework is extended so that it applies to:

               (i)                     for profit-private sector entities that are required by legislation to comply with either Australian Accounting Standards or accounting standards (with the previous limitation to entities with public accountability removed);

               (ii)                   other for-profit private sector entities that are required only by their constituting document or another document to comply with Australian Accounting Standards (and so excluding requirements to comply merely with 'accounting standards'), provided that the relevant document was created or amended on or after 1 July 2021; and

               (iii)                 other for-profit entities (including for-profit public sector entities) that elect to prepare GPFS; and

          (b)                   the existing Conceptual Framework and SAC 1 are also amended so that they do not apply to all for-profit entities that are applying the Conceptual Framework. Consequential amendments are made to the applicability of the reporting entity definition in AASB 1057, which is not relevant to entities applying the Conceptual Framework.

     BC159        Therefore, with these amendments, an entity that is required to apply the Conceptual Framework cannot identify as a non-reporting entity under SAC 1 or AASB 1057. As a consequence, the ability of such an entity to prepare SPFS is removed and the entity will be required to prepare GPFS that comply with AAS (or accounting standards under legislative requirements).  For the avoidance of doubt, an entity applying the Conceptual Framework cannot apply the definition of reporting entity outlined in SAC 1 or AASB 1057.

     BC160        The application paragraph of AASB 1057 is extended to state that it will apply to for-profit private sector entities that are required by legislation to comply with either AAS or accounting standards, and other for-profit private sector entities that are required only by