Document ID: chunk:federal_register_of_legislation:F2023C00190:reg:9b:p10
Version: federal_register_of_legislation:F2023C00190
Segment Type: reg
Provision Reference: reg 9B (pt 10/41)
Character Range: 135399–138580

also noted the requirements of Australian Auditing Standards and the existing responsibilities of those charged with governance and auditors with respect to the selection and application of an entity's financial reporting framework.  In particular, the Board noted the requirements in ASA 800 Special Considerations – Audits of Financial Reports Prepared in Accordance with Special Purpose Frameworks which for example require that "the auditor shall obtain an understanding of the steps undertaken by management to determine that the applicable financial reporting framework is acceptable in the circumstances"[18] and also ASA 700 Forming an Opinion and Reporting on a Financial Report which for example requires that "the auditor shall evaluate whether the financial report adequately refers to or describes the applicable financial reporting framework".[19]

Disclosures regarding compliance with all the recognition and measurement requirements in Australian Accounting Standards

     BC27            When deciding what information about compliance with all the recognition and measurement requirements in Australian Accounting Standards should be disclosed, the Board considered the following alternatives in developing ED 293:
Option     Information to be disclosed
Option 1   Contextual information about the entity, being where the entity has subsidiaries, investments in associates or investments in joint ventures, and whether or not they have been consolidated or equity accounted in a manner consistent with the requirements set out in Australian Accounting Standards.
           If the entity has not consolidated its subsidiaries or equity accounted its investments in associates or joint ventures in a manner consistent with the requirements set out in Australian Accounting Standards, the entity shall disclose that fact and the reasons why.  If the entity is a not-for-profit entity, and it has not determined whether or not its interests in other entities give rise to interests in subsidiaries, associates or joint ventures, the entity shall instead disclose that fact.
Option 2   An explicit statement as to whether or not the financial statements comply with all the recognition and measurement requirements in Australian Accounting Standards and, if not, an indication of where they do not comply.
Option 3   Merely a binary statement regarding compliance or non-compliance with all the recognition and measurement requirements in Australian Accounting Standards, for example either that "the entity has complied with all the recognition and measurement requirements in Australian Accounting Standards" or "the entity has not complied with all the recognition and measurement requirements in Australian Accounting Standards".
Option 4   Merely a statement of compliance with all the recognition and measurement requirements in Australian Accounting Standards that is, no statement would be required if an entity did not comply with all the recognition and measurement requirements in Australian Accounting Standards.

     BC28            The Board decided that Options 1 and 2 together were most appropriate, as they best inform financial statement users