Document ID: chunk:federal_register_of_legislation:F2022C01110:reg:20:p31
Version: federal_register_of_legislation:F2022C01110
Segment Type: reg
Provision Reference: reg 20 (pt 31/40)
Character Range: 122458–125522

Accounting Standards and the reasons for the accounting policies adopted to effect that resumption or commencement) would not entail material additional costs for Tier 2 entities.  These paragraphs were introduced into AASB 1 by AASB 2012-5.
BC24            Accordingly, the Board decided an entity that resumes the application of Tier 2 reporting requirements using the AASB 108 option in AASB 1 should not be exempt from complying with paragraphs 23A and 23B of AASB 1.
BC25            The Board noted that paragraphs 23A and 23B of AASB 1 are not applicable to entities applying Tier 2 reporting requirements for the first time as these paragraphs are only relevant to reapplication of AASB 1.

Basis for Conclusions on AASB 2022-2

This Basis for Conclusions accompanies, but is not part of, AASB 1053.  The Basis for Conclusions was originally published with AASB 2022-2 Amendments to Australian Accounting Standards – Extending Transition Relief under AASB 1.

Introduction
BC1               This Basis for Conclusions summarises the Australian Accounting Standards Board's considerations in reaching the conclusions in this Standard. It sets out the reasons why the Board developed the Standard, the approach taken to developing the Standard and the bases for the key decisions made. In making decisions, individual Board members gave greater weight to some factors than to others.

Reasons for issuing this Standard
BC2               For periods beginning on or after 1 July 2021, certain for-profit-private sector entities can no longer apply the reporting entity concept or prepare special purpose financial statements (SPFS) when the financial statements are required (by legislation or an entity's constituting or other document) to comply with Australian Accounting Standards or when legislation requires the financial statements to comply with accounting standards. This follows the issue of AASB 2020-2 Amendments to Australian Accounting Standards – Removal of Special Purpose Financial Statements for Certain For-Profit Private Sector Entities. Instead, entities within the scope of AASB 2020-2 will be required to prepare general purpose financial statements (GPFS). In addition, some of these entities may also be required to prepare consolidated financial statements for the first time if they historically applied the exemption in AASB 10 Consolidated Financial Statements that did not require the presentation of consolidated financial statements when neither the parent entity nor the group was a reporting entity.

Issue of Exposure Draft ED 315
BC3               The Board's proposals with respect to the amendments finalised in this Standard were exposed for public comment in November 2021 through Exposure Draft ED 315 Extending Transition Relief under AASB 1.

BC4               The significant issues considered by the Board in developing ED 315 are addressed in the following sections.

Optional exemption relating to the measurement of the assets and liabilities of subsidiaries, associates and joint ventures
BC5               One