Document ID: chunk:federal_register_of_legislation:F2023C00381:reg:8:p22
Version: federal_register_of_legislation:F2023C00381
Segment Type: reg
Provision Reference: reg 8 (pt 22/28)
Character Range: 236332–241488

with the effect for the majority of these entities (5,589) expected to be limited to providing additional disclosures only coupled with the transitional relief an earlier effective date was considered reasonable                                                                                                                                                                                         * The effective date is not consistent with the AASB's Due Process Framework that suggest an implementation period of 2 years

     Option 3                                                                                                                                            * Similar as those for Option 1 above                                                                                                                                                                                                                                                                                                                                                                                                                                                 * Similar as those for Option 1 above
                                                                                                                                                         * Transition requirements would be consistent with those applied by SGEs                                                                                                                                                                                                                                                                                                                                                                                                              * There is no incentive for entities to early adopt
    * Effective date of 1 July 2021

    * No transitional relief

     Option 4                                                                                                                                            * Similar as those for Option 1 above                                                                                                                                                                                                                                                                                                                                                                                                                                                 * Disadvantages of deferred effective date similar as for Option 1 above

    * Extend the effective date of both standards to 1 July 2021 with the transitional relief applicable only to entities' first time consolidation      * Research Report 12 does not address the number of financial reports which were presented on a consolidated or separate basis, it is difficult to quantify the number of affected entities. As such the entities preparing first time consolidation would be given extra time to prepare for any changes that might be required

     Option 5                                                                                                                                            * Effective date would be aligned with the change in proprietary company thresholds.  All entities regulated by Corporations Act, which are in the scope of this Standard would comply with R&M requirements of AAS in a timely manner                                                                                                                                                                                                                                                * The resolution of the problems with SPFS reporting would take an additional year for entities not regulated by the Corporations Act
                                                                                                                                                         * It is expected that entities required to prepare financial reports in accordance with the Corporations Act 2001 should already be complying with the R&M requirements in AAS - as there are only a maximum of 7,295 entities expected to be effected, this option is not expected to be too onerous for Corporations Act entities.  As the population of other entities is unknown, and they do not have a RG 85 equivalent, an additional year to prepare would be beneficial
     Staggered implementation

    * Corporations Act entities to apply the requirements in year one
    * Effective date deferred by a further year for all other entities in scope

     BC152        The Board ultimately decided that Option 1 provided the most appropriate solution, for the reasons set out in paragraph BC151 above.

     BC153        In respect of the issues raised in respect of the revised Tier 2 framework (see paragraph BC150), the Board decided that the need to remove SPFS for the entities within the scope of this Standard in a timely manner would mean that waiting for the IASB and retaining trans-Tasman convergence (in the short term) would not meet the