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Tier 2 Requirements

Tier 2 requirements (commonly known as RDR) are designed to substantially reduce the disclosure burden of many Australian entities that previously applied Australian Accounting Standards now labeled as Tier 1.

AASB 1053 Application of Tiers of Australian Accounting Standards was issued in June 2010 to introduce RDR.  The RDR is available to a wide range of entities in both the private and public sectors in preparing general purpose financial statements:

(a) for-profit private sector entities that do not have public accountability;
(b) all not-for-profit private sector entities; and
(c) public sector entities other than the Australian Government and State, Territory and Local Governments.

AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements (June 2010) makes amendments to many Australian Accounting Standards, including Interpretations, to introduce reduced disclosure requirements to the pronouncements for application by Tier 2 entities.

The RDR applies to annual reporting periods beginning on or after 1 July 2013.  Tier 2 entities may early adopt the RDR in respect of annual reporting periods beginning on or after 1 July 2009. 

RDR versions of Australian Accounting Standards for preparing financial statements for the 2009-2010 reporting period are available for early adopters. 

For 2009-10 RDR versions of Standards click here.