Document ID: chunk:federal_register_of_legislation:F2025C00209:reg:221:p54
Version: federal_register_of_legislation:F2025C00209
Segment Type: reg
Provision Reference: reg 221 (pt 54/73)
Character Range: 311441–314426

to AASB 1060 to provide optional relief for NFP entities adopting AASB 1060 early from having to present comparative information in the notes to the financial statements where the entity did not previously disclose the comparable information in its most recent previous Tier 2 general purpose financial statements. The ED proposed this relief would be available for NFP entities transitioning from Tier 2 RDR to Tier 2 SD before the mandatory application date of AASB 1060.

 2.                In developing ED 306, the Board also considered whether to extend to NFP entities other relief available to for-profit private sector entities under AASB 1053 Appendix E. For example, paragraphs E5–E7 provide optional relief from restating comparative information to for-profit private sector entities that had not complied with all the recognition and measurement requirements of Australian Accounting Standards (including, if a parent entity, not presenting consolidated financial statements prepared in accordance with AASB 10 Consolidated Financial Statements) in their most recent previous special purpose financial statements (SPFS).

 3.                However, when finalising the previous amendments to AASB 1053, the Board decided not to extend any additional relief to NFP entities, as that could result in the loss of useful, restated comparative information. The Board also noted that it had decided to grant such relief to for-profit private sector entities due to the removal of the ability of such entities to prepare SPFS, which does not apply to NFP entities. Transition by NFP entities from SPFS to general purpose financial statements will be considered in more detail by the Board in its deliberations on the Board's separate NFP Private Sector Financial Reporting Framework project.

Location of amendments

 1.                The Board also considered whether to propose making the amendments to provide the optional transitional relief to AASB 1053 or to AASB 1060. While the equivalent relief for for-profit private sector entities is included in AASB 1053 (Appendix E), the Board decided that in this instance AASB 1060 was the more appropriate location. This is because the relief proposed in ED 306 would apply only to NFP entities that are transitioning early from Tier 2 RDR. The Board concluded that entities transitioning between the Tier 2 frameworks would not normally refer to AASB 1053 for transition guidance as AASB 1053 deals with entities transitioning between tiers, rather than to new requirements relating to the same tier.

Other amendments

 1.             The Board also proposed some editorial improvements to AASB 1053 to highlight that the relief set out in Appendix E of AASB 1053 applies only to for-profit private sector entities.

Finalisation of ED 306 proposals

 1.             Following the consultation period, and after considering the comments received, the Board decided to proceed with issuing this Standard, with minimal changes