Document ID: chunk:federal_register_of_legislation:F2023C00190:reg:9b:p8
Version: federal_register_of_legislation:F2023C00190
Segment Type: reg
Provision Reference: reg 9B (pt 8/41)
Character Range: 129703–132783

by:

          (a)                    all entities preparing special purpose financial statements (including those preparing financial statements voluntarily); or

          (b)                   all entities preparing special purpose financial statements that are required by legislation or otherwise to comply with Australian Accounting Standards; or

          (c)                    only those entities preparing special purpose financial statements that are directly subject to AASB 101 and AASB 1054 Australian Additional Disclosures[15], as set out in paragraph 2 of AASB 1054 and paragraph 7 of AASB 1057 Application of Australian Accounting Standards, (and, indirectly, any entities required through legislation to comply with AASB 101 and AASB 1054, such as entities lodging special purpose financial statements with the ACNC as they are required by legislation to comply with AASB 101 and AASB 1054 (as noted in footnote 8 to paragraph BC12 above)).

     BC20            The Board considered that while there was merit in requiring all entities required by legislation or otherwise to comply with Australian Accounting Standards preparing special purpose financial statements to make the disclosure proposed in ED 293 (ie those entities include paragraph BC19(b)), to do so was not warranted.  This is consistent with the current scope of Australian Accounting Standards and the Board's role and expertise, which is to determine the appropriate accounting framework and accounting standards that should apply where legislation, regulation or other authority requires the preparation of financial statements that comply with Australian Accounting Standards.

     BC21            The Board did acknowledge that if the disclosures were required only by entities subject to AASB 101 and AASB 1054, there may be a large number of entities preparing special purpose financial statements when required to comply with Australian Accounting Standards that would not be required to make the disclosures (eg entities outside the scope of the Corporations Act 2001 and entities not required to comply with the ACNC's reporting requirements applying to special purpose financial statements).  The Board however made the observation that many of these entities are expected to fall within the scope of APES 205, as the intention of APES 205 is to set requirements for members[16] who are involved in the preparation, presentation, audit, review or compilation of financial statements for entities that are outside the scope of the Corporations Act 2001.  Therefore, to possibly mitigate (albeit not eliminate) concerns about entities outside the scope of AASB 101 and AASB 1054 not being required to make the disclosures, the matter was raised with staff of the APESB as to whether the APESB might consider, following its own due process, making any consequential amendments to APES 205 consistent with the amendments to the affected Australian Accounting Standard proposed in ED 293.  Subsequent to the issue of ED 293, the Board noted that the matter was considered by the APESB,