Document ID: chunk:federal_register_of_legislation:F2023L00951:body:0:p6
Version: federal_register_of_legislation:F2023L00951
Segment Type: other
Provision Reference: 
Character Range: 14619–17709

to AASB 1060 were proposed in relation to the amendments made to AASB Practice Statement 2. This is because AASB Practice Statement 2 provides non-mandatory guidance to all entities on making materiality judgements when preparing general purpose financial statements in accordance with Australian Accounting Standards. AASB 1060 does not include any guidance corresponding explicitly with that in AASB Practice Statement 2.

Finalisation of ED 323 proposals
     BC10            Following the consultation period, and after considering the comments received, the Board decided to proceed with issuing this Standard, with minimal changes from the proposals in ED 323.

Feedback from respondents on ED 323
     BC11            The Board received four formal comment letters on ED 323 and informal feedback from targeted outreach activities. The feedback received indicated that, in general, all respondents were supportive of the proposals. However, some respondents provided additional feedback:
          (a)                    one stakeholder suggested the Board consider including in AASB 1060 certain guidance paragraphs that had been added to AASB 101. In their view, paragraphs 72B and 75A of AASB 101 provide the most useful guidance for preparers when determining whether a liability is current or non-current. The stakeholder was concerned that if these guidance paragraphs were not included in AASB 1060, Tier 2 entities might not be aware of the useful guidance or would have to refer to AASB 101 for the guidance; and
          (b)                   one stakeholder suggested the Board reconsider the proposed amendments to paragraph 40(d) and relocate the statement about counterparty equity conversion options to a separate paragraph. In their view, the amendment proposed to paragraph 40(d) in ED 323 implied that the statement is relevant to paragraph 40(d) but not to paragraphs 40(a) and 40(c). They considered that the amendment proposed in ED 323 would be inconsistent with the amendments made to AASB 101, which relocated the statement about counterparty conversion options to a separate paragraph, paragraph 76B.
     BC12            The Board considered the feedback and decided:
          (a)                    not to add the guidance contained in paragraphs 72B and 75A of AASB 101 to AASB 1060. The Board confirmed its view that guidance paragraphs added to AASB 101 should not be added to AASB 1060; and
          (b)                   to relocate the statement about counterparty conversion options from paragraph 40(d) to a new paragraph, paragraph 41A, for consistency with the amendments made to AASB 101.

Effective date
     BC13            To ensure consistency between the amendments in this Standard for Tier 2 reporting requirements and the amendments made in AASB 2020‑1 and AASB 2022-6 for Tier 1 reporting requirements, the Board decided that this Standard would be effective for annual periods beginning on or after 1 January 2024, with earlier application permitted.
  [1]  AASB 1053 Application of Tiers of Australian Accounting Standards outlines