Document ID: chunk:federal_register_of_legislation:F2023C00190:reg:9b:p39
Version: federal_register_of_legislation:F2023C00190
Segment Type: reg
Provision Reference: reg 9B (pt 39/41)
Character Range: 215344–218510

A " 'general purpose financial report' means a financial report intended to meet the information needs common to users who are unable to command the preparation of reports tailored so as to satisfy, specifically, all of their information needs".  SAC 1, paragraph 6.
  [5]  For those entities that are required to prepare and lodge financial statements with the Australian Securities and Investments Commission (ASIC) by Part 2M.3 of the Corporations Act 2001, and who are preparing special purpose financial statements, paragraph 2 of ASIC Regulatory Guide 85 Reporting requirements for non-reporting entities states "… ASIC believes that non-reporting entities, which are required to prepare financial reports in accordance with Chapter 2M of the Corporations Act 2001 (Act), should comply with the recognition and measurement requirements of accounting standards".  For those entities that are required to prepare and lodge financial statements with the Australian Charities and Not-for-profits Commission (ACNC), section 60.10(3) of ACNC Regulations requires financial statements and notes give a 'true and fair view', and the determination is required by the charity as well as the auditors in their audit report.
  [6]  Research Report 11.
  [7]  Appendix 2, Research Report 11.
  [8]  Financial statements lodged with the ACNC are available from the ACNC's website for no cost, therefore it is reasonable to expect that financial statements are being accessed by public users.  Research Report 11 noted that of the approximately 16,000 charities lodging financial statements with the ACNC in 2016, approximately one third declared that they were preparing special purpose financial statements.
  [9]  This project proposes to remove ability for certain entities to prepare special purpose financial statements when they are required to comply with Australian Accounting Standards via a phased approach, firstly in relation to for-profit entities and, in due course, in relation to not-for-profit entities.
  [10]  And indirectly through other legislation that imposes the application of AASB 101 in the preparation of special purpose financial statements.  For example, the Australian Charities and Not-for-profits Commission Act 2012, through section 60.30 of the Australian Charities and Not‑for‑profits Commission Regulation 2013, requires charities lodging special purpose financial statements with the ACNC to comply with AASB 101, despite the fact that the application paragraph of that Standard does not directly encompass them.
  [11]  Paragraph 6.1(c) of APES 205.
  [12]  Research Report 12 examined the financial reporting practices of for-profit entities, including large proprietary companies, small foreign-controlled proprietary companies, for-profit unlisted public companies and other small proprietary companies, lodging financial statements with ASIC.  Research Report 12 noted that when performing their initial assessment as to whether or not the accounting policies applied in the special purpose financial statements complied with the recognition and measurement requirements in Australian Accounting Standards, it was initially unclear