Document ID: chunk:federal_register_of_legislation:F2022C01110:reg:20:p29
Version: federal_register_of_legislation:F2022C01110
Segment Type: reg
Provision Reference: reg 20 (pt 29/40)
Character Range: 117078–120021

exemptions in AASB 1.
BC16            The Board noted, however, that entities returning to Tier 2 reporting requirements in circumstances noted in paragraph BC14 above are prohibited from applying AASB 1 and, by extension, they would be exempted from the disclosures of paragraph 23A (and the disclosures in paragraph 23B would not be applicable).  Accordingly, to provide relevant information to users, the Board concluded it should amend AASB 1053 to require the same disclosures as those in paragraph 23A of AASB 1 for entities resuming Tier 2 reporting requirements that are prohibited from applying AASB 1 and the AASB 108 option in AASB 1.

First-time Application of Tier 2 Reporting Requirements that does not entail Transition from Tier 1
BC17            The Board is of the view that entities transitioning to Tier 2 reporting requirements from SPFSs for the first time should not be bound by AASB 1 for first-time application.  In some cases it is envisaged that such entities might find application of Tier 2 reporting requirements retrospectively in accordance with AASB 108 more appropriate on cost-benefit grounds and should, therefore, be able to avail themselves of such a treatment.  Accordingly, consistent with first-time adoption requirements that existed before AASB 1 was issued, the Board decided to amend AASB 1053 to permit entities transitioning from SPFSs to Tier 2 requirements for the first time to apply those requirements retrospectively in accordance with AASB 108 without going through AASB 1, when and only when an entity had not applied, or only selectively applied, applicable recognition and measurement requirements in its most recent SPFSs (see paragraph BC19 below).  [In contrast, the Board decided that transition from SPFSs to Tier 1 reporting requirements for the first time should only be carried out using AASB 1, irrespective of whether an entity intends claiming IFRS compliance, consistent with the Board's IFRS adoption approach for Tier 1 entities.]
BC18            The Board noted the rationale for the prohibition in paragraph 19(a) of  the June 2010 version of AASB 1053 (see paragraph BC93 of AASB 1053 (June 2010)) for entities that had previously applied all applicable recognition and measurement requirements of Australian Accounting Standards from applying AASB 1 on first transition to Tier 2 reporting requirements.  Consistent with this rationale, the Board decided to amend AASB 1053 to prohibit the same entities from applying Tier 2 reporting requirements through AASB 1, or retrospectively in accordance with AASB 108 on first transition to Tier 2 requirements.  Those entities would continue to apply the applicable recognition and measurement requirements, whether they had previously initially applied recognition and measurement requirements consistent with AASB 1 or a predecessor to AASB 108, whichever was applicable at the time.
BC19            The Board noted that in