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26 Mar. 2020

Key facts documents to explain removal of SPFS and the new simplified disclosure standard

For annual periods beginning on or after 1 July 2021, certain types of for-profit private sector entities will no longer be able to prepare special purpose financial statements (SPFS) under AASB Standards.  AASB staff have prepared a key facts document that explains the background to AASB 2020-2 Amendments to Australian Accounting Standards – Removal of Special Purpose Financial Statements for Certain For-Profit Private Sector Entities, which entities are affected and which entities are not,  the transitional relief that may be available to entities that are no longer able to prepare SPFS and a summary of key changes from the proposals in ED 297.
A second key facts document explains why the AASB released a new simplified disclosure standard, AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities, in conjunction with the amendments made by AASB 2020-2, who the standard will apply to and what it means for entities, in particular for entities that are moving from the reduced disclosure requirements framework to AASB 1060. It also shows a summary of amendments resulting from feedback to ED 295 and other key issues considered in response to stakeholders' feedback.