Document ID: chunk:federal_register_of_legislation:F2024L00708:body:0:p171
Version: federal_register_of_legislation:F2024L00708
Segment Type: other
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Character Range: 478053–481183

Financial Statements and the making of AASB 18 Presentation and Disclosure in Financial Statements. In making decisions, individual Board members gave greater weight to some factors than to others.
BC2               In issuing IFRS 18, the International Accounting Standards Board (IASB) replaced its existing Standard IAS 1 Presentation of Financial Statements and made consequential amendments to a range of other existing affected IFRS Accounting Standards.

Australian context
BC3               The Australian version of IAS 1, AASB 101 Presentation of Financial Statements, applies to all Australian entities preparing Tier 1 general purpose financial statements (GPFS), including not-for-profit private and public sector entities.
BC4               IFRS 18 was developed by the IASB from the perspective of publicly accountable for-profit private sector entities. Based on outreach conducted by the AASB among Australian stakeholders across a range of sectors using Exposure Draft ED 298 General Presentation and Disclosures (January 2020), the Board is aware that many, but potentially not all, aspects of IFRS 18 are suitable for application by all types of Australian entities preparing Tier 1 GPFS.
BC5               The AASB noted that, while not all the proposals in ED 298 have been retained in IFRS 18 and more guidance has been provided on some matters, a number of concerns raised by entities that are not publicly accountable for-profit private sector entities (such as not-for-profit private and public sector entities) may remain.
BC6               Based on the feedback received on ED 298 and the changes made by the IASB in finalising IFRS 18, and the post-implementation review of AASB 1056 Superannuation Entities, the AASB has been able to give preliminary consideration to the suitability of IFRS 18 for all types of entities preparing Tier 1 GPFS. The AASB decided to:
(a)                    make AASB 18 applicable to for-profit entities preparing Tier 1 GPFS, other than superannuation entities, for annual periods beginning on or after 1 January 2027;
(b)                   make AASB 18 applicable to not-for-profit private sector entities, not-for-profit public sector entities and superannuation entities preparing Tier 1 GPFS for annual periods beginning on or after 1 January 2028 and to commence, as soon as feasible, further outreach with stakeholders on applying AASB 18 to these entities; and
(c)                    depending on the outcomes of the outreach, consider making modifications to AASB 18 for application by not-for-profit private sector entities, not-for-profit public sector entities and superannuation entities.
BC7               The AASB expects that any modifications to AASB 18 for application by entities noted in paragraph BC6(c) could take the form of guidance, exemptions and alternative requirements.

Not-for-profit entities
BC8               The AASB received only limited feedback from not-for-profit stakeholders on ED 298.
BC9               Nonetheless, the AASB considers there may be issues that need to be clarified in applying AASB 18 to not-for-profit entities.