Document ID: chunk:federal_register_of_legislation:F2022C01110:reg:1:p5
Version: federal_register_of_legislation:F2022C01110
Segment Type: reg
Provision Reference: reg 1 (pt 5/11)
Character Range: 16193–19016

sector entity that:
(a) prepared its most recent previous annual financial statements in compliance with Tier 2 reporting requirements, including an explicit and unreserved statement of compliance with Tier 2 reporting requirements;
(b) did not present consolidated financial statements, on the basis that neither the parent nor the group was a reporting entity (as defined in AASB 1057); and
(c) is preparing consolidated financial statements for the first time in compliance with Tier 2 – Simplified Disclosures;
shall apply either:
(d) all the relevant requirements of AASB 1; or
(e) Tier 2 reporting requirements directly using the requirements in AASB 108.

Transition between Tiers
21 An entity transitioning from Tier 2 to Tier 1 shall:
(a) apply AASB 1[6], if it is claiming compliance with IFRSs; and
(b) not apply AASB 1, if it is a not-for-profit entity not claiming compliance with IFRSs.
22 In relation to paragraph 21(a), entities claiming compliance with IFRSs (which would include for-profit entities applying Tier 1 reporting requirements) need to apply the relevant requirements of AASB 1.  This is because, in previously applying Tier 2 reporting requirements, these entities have applied only some of the disclosure requirements of AASB 1 or were prohibited or exempted from applying AASB 1.
23 An entity transitioning from Tier 1 to Tier 2 shall not apply AASB 1.
24 [Deleted by the AASB]

Appendix A
Defined Terms

This appendix is an integral part of AASB 1053.

The following terms have the meanings specified:
General purpose financial statements are those intended to meet the needs of users who are not in a position to require an entity to prepare reports tailored to their particular information needs.
Public accountability – an entity has public accountability if:
(a) its debt or equity instruments are traded in a public market or it is in the process of issuing such instruments for trading in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets); or
(b) it holds assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses.

Appendix B
Public Accountability

This appendix is an integral part of AASB 1053.

B1 Public accountability is defined in Appendix A.  The notion of public accountability is consistent with the notion adopted by the IASB in its International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs).  It is different from the notion of public accountability in the general sense of the term that is often employed in relation to not-for-profit, including public sector, entities.
B2 The following for-profit entities are deemed to have public accountability:
(a) disclosing entities, even if their debt or equity instruments are not