Document ID: chunk:federal_register_of_legislation:F2022C01110:reg:20:p22
Version: federal_register_of_legislation:F2022C01110
Segment Type: reg
Provision Reference: reg 20 (pt 22/40)
Character Range: 97820–100911

In particular, the Board considered it would need to consult widely about whether some life insurers could be given relief from disclosures under AASB 1038 because the Board's initial view is that life insurance is of high public interest and comprehensive information on life insurance is needed by users of general purpose financial statements.
BC87            The Board noted that, until the above due process is completed, all insurers and superannuation plans preparing general purpose financial statements would continue to apply these Standards in full.  Accordingly, if there are any Tier 2 insurers or superannuation plans preparing general purpose financial statements, the only benefits of reduced disclosure requirements available to them would be through the reduced disclosures in other Standards.

Transition
BC88            The Board considered the transitional requirements for entities adopting Tier 2 requirements for the first time and moving between Tiers.  The Board identified three main scenarios for transition that should be dealt with in AASB 1053:
(a)                    transition by an entity that prepared its most recent previous financial statements in the form of special purpose financial statements to Tier 1 or Tier 2;
(b)                   transition by an entity applying Tier 1 to Tier 2; and
(c)                    transition by an entity applying Tier 2 to Tier 1.
BC89            The Board noted that, for transitioning from special purpose financial statements to general purpose financial statements, an assessment of whether the preparer has applied recognition and measurement requirements in its most recent previous financial statements is of paramount importance.  Accordingly, an entity that has applied recognition and measurement requirements of Australian Accounting Standards selectively or not at all in its special purpose financial statements should be treated differently from one that has applied the recognition and measurement requirements of applicable Australian Accounting Standards, including those of AASB 1 First-time Adoption of Australian Accounting Standards.
BC90            AASB 1 includes disclosure requirements.  Entities transitioning from special purpose financial statements to Tier 2 are exempted from some of the disclosure requirements in that Standard, using the principles applied in determining disclosures under Tier 2 (see paragraph BC78).
BC91            Entities transitioning from Tier 1 to Tier 2 would not apply AASB 1.  However, entities transitioning from Tier 2 to Tier 1 would need to apply AASB 1 in full to claim compliance with IFRSs, as under Tier 2 they would only have applied some of the disclosure requirements of AASB 1.  This is consistent with the Board's policy that for-profit entities complying with Australian Accounting Standards simultaneously comply with IFRSs.
BC92            Entities that transition to Tier 1 need to apply AASB 1 in full in order to be able to claim compliance with IFRSs, in accordance with AASB 101, including making an unreserved statement of compliance