Document ID: chunk:federal_register_of_legislation:F2025C00209:reg:221:p47
Version: federal_register_of_legislation:F2025C00209
Segment Type: reg
Provision Reference: reg 221 (pt 47/73)
Character Range: 292171–295491

when developing the disclosures in AASB 1060, in particular:

          1.                     the disclosures in the IFRS for SMEs Standard should be retained where the recognition and measurement (R&M) requirements and options are the same or similar in the IFRS for SMEs Standard and full IFRS Standards (and therefore Australian Accounting Standards);

          2.                    where R&M options or treatments in the IFRS for SMEs Standard are not available in full IFRS Standards (and therefore Australian Accounting Standards), the related IFRS for SMEs disclosures are removed; and

          3.                     where the R&M principles in full IFRS Standards (and therefore Australian Accounting Standards) are significantly different from those in the IFRS for SMEs Standard or certain topics are not addressed in the IFRS for SMEs Standard, disclosures may be added. To determine whether to add any disclosures, the Board refers to the principles applied by the International Accounting Standards Board (IASB) in developing the disclosures in the IFRS for SMEs Standard, which are set out in paragraph BC5.

     In addition to applying these principles, the Board also considers whether to add disclosures to address matters of public policy or to reflect Australian-specific issues.

 1.                The principles applied by the IASB in developing the disclosures in the IFRS for SMEs Standard consider that users of the financial statements of for-profit entities that are not publicly accountable are particularly interested in information about:

          1.                     short-term cash flows and obligations, commitments or contingencies, whether or not recognised as liabilities;

          2.                    liquidity and solvency;

          3.                     measurement uncertainties;

          4.                    accounting policy choices; and

          5.                     disaggregations of amounts presented in the financial statements.

     The principles further note that some disclosures in full IFRS Standards are more relevant to investment decisions in public capital markets than to transactions and other events and conditions encountered by entities without public accountability.

 1.                Based on these principles of the Board and the IASB, the Board agreed to use the following approach when considering whether to add to or amend disclosure requirements in AASB 1060 in relation to amendments made by the IASB to full IFRS Standards:

          1.                     if the amendments introduce significant R&M differences between full IFRS Standards and the IFRS for SMEs Standard, apply the principles applied by the IASB in developing the IFRS for SMEs Standard, as summarised in paragraph BC5; and

          2.                    if the amendments do not introduce significant R&M differences, no further action is required unless the disclosures address a matter of public policy or are of particular relevance in the Australian environment.

 2.                The Board therefore considered whether the amendments made to AASB 9 Financial Instruments, AASB 4 Insurance Contracts, AASB 16 Leases and AASB 139 Financial Instruments: Recognition and Measurement by AASB 2020-8 will result in significant R&M differences to