Skip To Content | Contact Us | About AASB | Links

AASB on Twitter AASB on LinkedIn

Breadcrumbs

Stuff

News

1 Aug. 2019

Exposure Draft: General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities

ED 295 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities proposes replacing the current Reduced Disclosure Requirements (RDR) in the Australian Accounting Standards (AAS) with a new, separate disclosure standard (the Simplified Disclosure Standard) that would apply to all entities that report under Tier 2 of the differential reporting framework set out in AASB 1053 Application of Tiers of Australian Accounting Standards. The Simplified Disclosure Standard has been developed based on the IFRS for SMEs disclosures, adapted for differences in recognition and measurement (R&M) requirements between AAS and IFRS for SMEs, and to accommodate not-for-profit (NFP) specific circumstances.

The proposals in ED 295 will not change which entities are permitted to apply Tier 2 reporting requirements and the R&M requirements of Tier 2, which are the same as for Tier 1.

The proposals in ED 295 are being made in conjunction with the forthcoming Exposure Draft on the proposed removal of special purpose financial statements (SPFS). They will reduce the disclosures required under current RDR and will therefore reduce the cost for entities that have to transition from SPFS to general purpose financial statements if the AASB’s proposal to remove SPFS is implemented.

The proposals will also provide some immediate relief for public sector entities and NFP private sector entities that are currently reporting under RDR. However, they are not intended to replace the AASB’s separate project of reshaping financial reporting frameworks for the NFP private and public sectors, and there may be future changes to the NFP reporting framework as a result of ongoing AASB consultations with other NFP regulators.

 

Please submit your comments to the AASB by 15 November 2019 via the AASB websiteLinkedIn or email.