Document ID: chunk:federal_register_of_legislation:F2022C01110:reg:20:p21
Version: federal_register_of_legislation:F2022C01110
Segment Type: reg
Provision Reference: reg 20 (pt 21/40)
Character Range: 94959–98062

NFP (including public sector) entities in Australia given that IFRSs are generally applied to all types of Australian entities.

Application of Standards
BC81            AASB 2010-2 specifies the disclosures in each Australian Accounting Standard from which Tier 2 entities are exempted.  However, some Standards are equally applicable to both Tier 1 and Tier 2 entities.  Accordingly, such Standards do not provide reduced disclosures for Tier 2 entities.  Examples are AASB 4 Insurance Contracts and AASB 1004 Contributions.
BC82            Some Standards apply only to Tier 1 entities, but Tier 2 entities may elect to use them.  Examples are AASB 8 Operating Segments and AASB 133 Earnings per Share, which generally apply only to entities that access public capital markets, as stated in their application paragraphs.
BC83            AASB 134 Interim Financial Reporting applies to disclosing entities' half-year financial statements.  Consistent with the Board's approach to other Standards in respect of annual general purpose financial statements, other Tier 1 entities and Tier 2 entities that elect to prepare interim general purpose financial statements would be required to apply AASB 134 (which specifies reduced disclosure requirements under Tier 2), by virtue of the application paragraph in that Standard.
BC84            Entities applying AASB 134 may prepare condensed interim financial statements or present a complete set of financial statements as interim financial statements.  Tier 2 entities are exempted from some disclosures when preparing condensed financial statements and would apply Tier 2 requirements in AASB 101 when preparing a complete set of financial statements as their interim financial statements.
BC85            There are also Standards that are only applicable to Tier 1 entities, and Tier 2 entities cannot elect to apply them in preparing financial statements.  These Standards are identified by virtue of their application paragraphs.  Currently the only example is AASB 1049 Whole of Government and General Government Sector Financial Reporting.
BC86            In considering possible reductions in disclosure requirements of:
(a)                    AASB 4 Insurance Contracts, AASB 1023 General Insurance Contracts and AASB 1038 Life Insurance Contracts for insurers that might not be publicly accountable, such as potentially some captive insurers (see paragraphs BC27-BC28); and
(b)                   AAS 25 Financial Reporting by Superannuation Plans for superannuation plans that might not be publicly accountable, such as SAFs (see paragraphs BC29-BC30);
the Board noted that such decisions should be made after applying further due process, including public exposure of proposed reductions.  This is because ED 192 did not include proposed reduced disclosures for AASB 4, AASB 1023, AASB 1038 and AAS 25.  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