Document ID: chunk:federal_register_of_legislation:F2025C00209:reg:221:p24
Version: federal_register_of_legislation:F2025C00209
Segment Type: reg
Provision Reference: reg 221 (pt 24/73)
Character Range: 228750–232011

above IFRS for SMEs.

      6.             The disclosure requirements in the IFRS for SMEs Standard are therefore substantially reduced when compared with the disclosure requirements in full IFRS Standards. The IASB identified the following four principles as being used for the reductions:

               1.                     some disclosures are not included because they relate to topics covered in IFRS Standards that are omitted from the IFRS for SMEs Standard (as per paragraph BC88 of IFRS for SMEs Standard 2015 – Part B);

               2.                    some disclosures are not included because they relate to R&M principles in full IFRSs that have been replaced by simplifications in the IFRS for SMEs Standard (as per paragraphs BC98–BC136 of the IFRS for SMEs Standard 2015 – Part B);

               3.                     some disclosures are not included because they relate to options in full IFRS Standards that are not included in the IFRS for SMEs Standard (as per paragraphs BC84–BC86 of the IFRS for SMEs Standard 2015 – Part B); and

               4.                    some disclosures are not included on the basis of users' needs or cost-benefit considerations (as per paragraphs BC44–BC47, BC157 and BC158 of the IFRS for SMEs Standard 2015 – Part B).

      7.             In addition to these principles, the Board further decided that disclosures should be reduced from the IFRS for SMEs Standard where the disclosure requirements have been removed from full IFRS after the IFRS for SMEs Standard was finalised and as a result exceed what is currently required under the full IFRS (as per paragraphs BC43, BC66–BC67 and BC71 of this Standard).

      8.             In determining what disclosures to add, the following broad principles have been applied by the Board, which are consistent with those applied by the IASB in developing the disclosures in the IFRS for SMEs Standard[53]:

           1.                     users of the financial statements of for-profit entities that are not publicly accountable entities are particularly interested in information about short-term cash flows and about obligations, commitments or contingencies, whether or not recognised as liabilities. Thus disclosures in full IFRS Standards that provide this sort of information are necessary;

           2.                    users of the financial statements of for-profit entities that are not publicly accountable entities are particularly interested in information about liquidity and solvency. Thus disclosures in full IFRS Standards that provide this sort of information are necessary;

           3.                     information on measurement uncertainties is important;

           4.                    information about an entity's accounting policy choices is important;
           5.                     disaggregations of amounts presented in the financial statements of for-profit entities that are not publicly accountable entities are important for an understanding of those statements; and
           6.                     some disclosures in full IFRS Standards are more relevant to investment decisions in public capital markets than to the transactions and other events and conditions encountered by typical