Exposure Draft ED 315 Extending Transition Relief under AASB 1

Friday, November 26, 2021

ED 315 proposes transition relief to assist entities with the first-time preparation of general purpose financial statements (GPFS) in some circumstances.

This includes certain for-profit private sector entities that can no longer apply the reporting entity concept or prepare special purpose financial statements from 1 July 2021.

ED 315 proposes amendments to:

• AASB 1 First-time Adoption of Australian Accounting Standards – to allow a subsidiary preparing GPFS for the first time to apply the optional exemption in paragraph D16(a) and measure its assets and liabilities at the carrying amounts that would be included in the parent’s consolidated financial statements where the parent has already adopted either Australian Accounting Standards or IFRS Standards; and
• AASB 1053 Application of Tiers of Australian Accounting Standards – to allow for-profit private sector entities transitioning from unconsolidated Tier 2 – Reduced Disclosure Requirements GPFS to consolidated Tier 2 – Simplified Disclosures GPFS to apply AASB 1 when preparing consolidated financial statements for the first time.

The amendments are proposed to apply to annual periods ending on or after 30 June 2022.

Please submit your comments to the AASB by 27 January 2022, via the AASB website or email.