Document ID: chunk:federal_register_of_legislation:F2023C00381:reg:25:p17
Version: federal_register_of_legislation:F2023C00381
Segment Type: reg
Provision Reference: reg 25 (pt 17/47)
Character Range: 69600–72672

BC47            Based on feedback received on ITC 39, the Board noted that AASB 1053 paragraph 11 regarding the application of Tier 1 reporting requirements is not operating as intended to require entities with public accountability to prepare general purpose financial statements.  The Board determined that the amended requirement would be limited to those entities scoped into Phase 1 to avoid unintended consequences.

Public sector entities

     BC48            The definition of public accountability in IFRS for SMEs was developed by the IASB for for-profit private sector entities.  When discussing AASB 1053, the Board considered whether the definition of public accountability should also be applied to public sector entities.  However, the Board decided against this for the following reasons:
         The Board concluded that, consistent with the role of other regulators under the revised differential reporting framework (see paragraphs BC40-BC41), the determination of the Tiers of reporting requirements under which for-profit public sector entities should report would best be left to relevant public sector regulators in each jurisdiction.  (AASB 1053, paragraph BC38).

     The Board did not consider that there was any reason to revisit this decision.

     BC49            When discussing the application of Phase 1 of ITC 39 to entities in the public sector, the Board did not intend to force any for-profit public sector entity to adopt the revised Conceptual Framework for periods beginning on or after 1 January 2020.  The Phase 1 amendments are intended to allow for-profit public sector entities to apply the revised Conceptual Framework and continue stating compliance with IFRS Standards where they elect to do so.

     BC50            For these reasons, the Board decided that Phase 1 should also apply to for-profit public sector entities that elect to apply the revised Conceptual Framework, in addition to for-profit private sector entities that have public accountability and are required by legislation to comply with Australian Accounting Standards.

     BC51            The Board decided that it would pursue financial reporting reform in the public sector via consultation based on the AASB Discussion Paper Improving Financial Reporting for Australian Public Sector, which was issued in June 2018.

Further consultation

     BC52            In December 2017 and February, September and November 2018, the Board considered issues papers and drafts of the Standard which were published as Board agenda papers for the public.  This gave stakeholders the opportunity to follow the project and to comment on the issues contemporaneously.

     BC53            At its meeting in November 2018, the Board decided to finalise its decisions to address the issues raised by stakeholders.  Whilst the substance of the Board's decisions is consistent with the proposals in ITC 39, the Board decided that the new approach to highlighting which entities apply which conceptual framework and to the scope restrictions warranted the issue of a