Document ID: chunk:federal_register_of_legislation:F2023C00190:reg:9b:p21
Version: federal_register_of_legislation:F2023C00190
Segment Type: reg
Provision Reference: reg 9B (pt 21/41)
Character Range: 166602–169678

disclosure requirement to AASB 1054 Australian Additional Disclosures requiring an entity that intends to comply with IFRS Standards to disclose the information in paragraphs 30 and 31 of AASB 108 on the potential effect on the entity's financial statements of an IFRS Standard that has not yet been issued by the Board.  This disclosure requirement will be particularly relevant to for-profit publicly accountable entities seeking IFRS compliance.  Not-for-profit entities need not provide the disclosures if they are not able to or are not seeking to comply with IFRS Standards.

     BC5               The disclosures set out in paragraphs 30 and 31 are not required of Tier 2 entities under Australian Accounting Standards – Reduced Disclosure Requirements.  Similarly, these disclosures are not proposed to be required of Tier 2 entities in Exposure Draft ED 295 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities.  Therefore, the Board decided it would be appropriate not to require Tier 2 entities to provide the disclosures in relation to new IFRS Standards not yet issued in Australia.  Tier 2 entities preparing general purpose financial statements under the Reduced Disclosure Requirements will not be in compliance with IFRS Standards, and so such entities could not intend to comply with IFRS Standards.  Although the disclosure requirement therefore would not apply to Tier 2 entities, the Board decided to make explicit the non-application to Tier 2 entities.

     BC6               The Board also noted that the New Zealand equivalent of AASB 1054, Financial Reporting Standard FRS 44 New Zealand Additional Disclosures, has been amended similarly in relation to IFRS Standards that have not yet been issued in New Zealand.  The AASB's For-Profit Entity Standard-Setting Framework requires that, wherever possible, differences between accounting standards issued in Australia and New Zealand should be minimised to reduce costs for entities operating trans-Tasman.

Issue of Fatal-Flaw Review version

     BC7               In October 2019, the Board issued a Fatal-Flaw Review version of the amendment for public comment with a two-week comment period.  The Board decided to provide only a short comment period as it considered the matter was straightforward and not controversial.  The Board received one submission on the Fatal-Flaw Review version.  The Board considered the feedback received and decided that the proposed amending Standard did not require amendment and that further due process was not needed.  Accordingly, the Board finalised the amending Standard to add the disclosure requirement to AASB 1054.

Basis for Conclusions on AASB 2022-4

This Basis for Conclusions accompanies, but is not part of, AASB 1054.  The Basis for Conclusions was originally published with AASB 2022-4 Amendments to Australian Accounting Standards – Disclosures in Special Purpose Financial Statements of Certain For-Profit Private Sector Entities.

Introduction

     BC1               This Basis for