Document ID: chunk:federal_register_of_legislation:F2023C00381:reg:8:p2
Version: federal_register_of_legislation:F2023C00381
Segment Type: reg
Provision Reference: reg 8 (pt 2/28)
Character Range: 165423–168357

disclosures to help predict the viability of an entity such as liquidity, contingent liabilities, subsequent events and commitments.

     BC97            As a consequence, the Board decided to propose a third alternative to replace the current disclosure aspects of Tier 2 GPFS disclosure framework, being a new and separate disclosure standard for entities reporting under the Tier 2 GPFS framework, termed 'Simplified Disclosures'. It would be based on the disclosure requirements of the IFRS for SMEs Standard, but retain the R&M requirements in AAS.

     BC98            The disclosures required by the Simplified Disclosures Standard are set out in a separate but related Standard, AASB 1060, and have been developed via a 'bottom-up' approach based on the disclosures in the IFRS for SMEs Standard, without reference to the full IFRS disclosures (ie no shading).  The Board's decisions on the content of the Simplified Disclosures Standard are set out in the Basis for Conclusions to AASB 1060.

One Tier 2 GPFS Framework

     BC99            Some respondents to Phase 2 of ITC 39 suggested that more than one Tier 2 GPFS framework was necessary, as having only one Tier 2 GPFS framework is too limited.

     BC100        The Board noted transition costs, and the ongoing costs of training and maintenance of either two Tier 2 GPFS frameworks or even three tiers of GPFS reporting for users, preparers, auditors and regulators for only 1.3%[40] of actively trading entities outweighed any potential benefits.

     BC101        As noted in paragraph BC73, the Board observed that of the 2.5 million companies registered with ASIC in 2016-2017, only approximately 840,000 were actively trading, and of those there were only approximately 12,797 specified for-profit private sector entities that were required to prepare and lodge financial statements (at July 2018). This represents approximately only 1.5% of the total population of trading entities. The Board further noted that Treasury's increase of the large proprietary company thresholds would further reduce this number to 1.3% of the population of trading entities. The Board noted that this is a very small proportion of the total number of trading entities and having one Tier 2 GPFS framework for this population was sufficient.

     BC102        The Board also noted the results of a survey conducted by an accounting firm in Australia that asked respondents to answer a polling question regarding whether additional tier(s) of GPFS reporting should be considered. In response, 52% (118 of the 228 respondents) stated no, 18% (41 of the 228 respondents) stated yes and 30% (69 of the 228 respondents) weren't sure. The Board however noted that of those respondents who answered 'yes' to this question, a number of them provided suggestions specific to the NFP sector.

     BC103        Some respondents felt that additional tiers of GPFS reporting with varying