AASB 2021-6 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies: Tier 2 and Other Australian Accounting Standards

Monday, December 13, 2021

To help entities provide accounting policy disclosures that are more useful to the users of their financial statements, AASB 2021-6 makes amendments to certain Australian Accounting Standards.

Specifically, AASB 2021-6 amends:

1. AASB 1049 Whole of Government and General Government Sector Financial Reporting, to require entities to disclose their material accounting policy information rather than their significant accounting policies;
2. AASB 1054 Australian Additional Disclosures, to reflect the updated accounting policy terminology used in AASB 101 Presentation of Financial Statements; and
3. AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities, to require entities to disclose their material accounting policy information rather than their significant accounting policies and to clarify that information about measurement bases for financial instruments is expected to be material to an entity's financial statements.

The amendments made by AASB 2021-6 are consistent with amendments made by AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting Estimates.

AASB 2021-6 applies to annual reporting periods beginning on or after 1 January 2023, which is the same application date as for AASB 2021-2.