Document ID: chunk:federal_register_of_legislation:F2023C00190:reg:9b:p36
Version: federal_register_of_legislation:F2023C00190
Segment Type: reg
Provision Reference: reg 9B (pt 36/41)
Character Range: 207347–210257

an option to state they have not assessed compliance with certain AAS requirements.  The Board noted the contrary view that allowing a 'not assessed' option might be a means of responding to cost/benefit concerns expressed by respondents to ED 302, whilst still providing useful information that would put users on notice that the financial statements might not comply with all the R&M requirements in AAS.  However, consistent with the reasons in paragraph BC25 and the fact the Board had not identified any new arguments in the responses to ED 302, the Board did not accept that contrary view.  The Board also noted deferral of the effective date as mentioned in paragraph BC51 would provide entities with sufficient time to consider any possible complexities or challenges in making the disclosures, and therefore the 'not assessed' option was not warranted.

Disclosures regarding omitted AAS disclosures

     BC46            Some respondents to ED 302 expressed a view the disclosure requirements in this Standard should be expanded to require an entity's SPFS to identify AAS where it has elected to omit material disclosures that would otherwise be included in GPFS in accordance with those AAS.  For example, where the entity elects to not disclose related party transactions, it should be required to disclose its election not to make any disclosures under AASB 124 Related Party Disclosures.  The Board considered that while disclosures regarding omitted AAS disclosures might be useful for users of SPFS, the scope of this Standard and the related amendments are aimed at increasing the transparency and comparability of SPFS in relation to compliance with the R&M requirements in AAS rather than AAS disclosure requirements.  The Board also noted this matter was previously considered as part of the feedback received on ED 293 and the Board decided against requiring additional AAS disclosures as it was beyond the scope of the project that resulted in AASB 2019-4.  Consistent with AASB 2019-4, the Board considered matters relating to omitted disclosures are beyond the scope of the project that resulted in this Standard.

Other issues

Consistency with the Standard-Setting Framework

     BC47            Some respondents to ED 302 expressed a view that a Standard based on the proposals would contradict The AASB's For-Profit Entity Standard-Setting Framework (the Framework), and therefore this Standard should not be issued.  This was on the basis that the Framework states "the AASB currently does not set recognition and measurement requirements for SPFS.  This is because SPFS should only be prepared where users can tailor the SPFS to their own information needs and therefore do not need a standard-setter or regulator to specify the accounting policies or require disclosure of the information for them."

     BC48            The Board considered this view in light of its decision