Document ID: chunk:federal_register_of_legislation:F2022C01110:reg:20:p24
Version: federal_register_of_legislation:F2022C01110
Segment Type: reg
Provision Reference: reg 20 (pt 24/40)
Character Range: 103359–106428

is also consistent with the Board's normal policy regarding transition periods for its Standards.  The Board concluded that making Tier 2 requirements mandatory from the date of issue of relevant Standards may inappropriately require entities that currently apply Tier 1 to select that Tier and make disclosures related to that selection rather than continue their current accounting disclosures that comply with current GAAP.

Maintenance of Tier 2 Requirements
BC98            The Board decided that Tier 2 requirements should be maintained on a continuous basis, rather than waiting for the IASB to update its IFRS for SMEs, which the IASB plans to undertake only every few years, by which time there would be an accumulation of possible changes.  The AASB intends that each future Exposure Draft or Invitation to Comment involving changes to Tier 1 that includes disclosure proposals would seek comment about which disclosures should be included in Tier 2, and may include the AASB's proposed reduced disclosures.

Post-implementation Review
BC99            The Board decided that Tier 2 requirements should be subject to review and revision taking account of implementation experience and international developments.
BC100        The Board plans to monitor implementation experience with Tier 2 requirements and use it as a basis for providing feedback to the IASB to assist with its further deliberations on differential reporting matters and to help shape future amendments to the IFRS for SMEs.

Trans-Tasman Convergence
BC101        AASB 1053 was developed in the context of the Prime Ministers of Australia and New Zealand having signed on 20 August 2009 a Joint Statement of Intent that agreed on a framework of Outcome Proposals for developing cross-border economic initiatives.  A range of shared Outcome Proposals have been identified across a wide range of business law areas, including in relation to financial reporting.  The outcomes are expected to accelerate and deepen trans-Tasman regulatory integration as part of a broader single economic market initiative.  Outcome Proposals relating to financial reporting include:
For-profit entities
               (a)                    "Profit entities are able to use a single set of accounting standards and prepare only one set of financial statements (timeframe: short term – within two years)"
               (b)                   "Trans-Tasman companies have to prepare only one set of financial statements to one set of standards (timeframe: short term – within two years)"
Not-for-profit entities
"Not-for-profit entities are able to use a single set of accounting standards and prepare only one set of financial statements (timeframe: medium term – within five years)".
BC102        These Outcome Proposals are intended to reduce compliance costs for entities operating across the Tasman and support trans-Tasman investment through the consistency of financial statements.  The use of full IFRSs as the foundation standards in both countries provides a sound basis for achieving the above Outcome