IFRS Standard Not Yet Issued in Australia
When
an IFRS Standard has been issued by the International Accounting Standards Board but the equivalent Australian Accounting Standard has yet to be issued by the AASB, an entity intending to comply with IFRS Standards shall disclose the information specified in paragraphs 30 and 31 of AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors in relation to that IFRS Standard.
Appendix AAustralian simplified disclosures for Tier 2 entities
This appendix is an integral part of the Standard.
AusA1
Paragraphs 7–16 do not apply to entities preparing general purpose financial statements that apply AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities.
Implementation guidance and illustrative examples for not-for-profit private sector entities
The following implementation guidance and illustrative examples accompany, but are not part of, AASB 1054 Australian Additional Disclosures. They illustrate aspects of AASB 1054 but are not intended to provide interpretative guidance.
The AASB has prepared this guidance and examples to explain and illustrate the application of the requirements in paragraph 9A of this Standard and their relationship to the requirements in AASB 101 Presentation of Financial Statements for the disclosure of a not-for-profit private sector entity’s significant accounting policies. These requirements apply to entities applying this Standard, including those required by legislation to comply. An entity preparing special purpose financial statements that is not specifically required to comply with AASB 1054 may elect not to comply with these requirements, however, is encouraged to do so.
The table below has been provided for ease of reference to illustrate the types of entities that would be generally within the scope of the requirements in paragraph 9A of this Standard, but some entities may have different specific requirements.
# | Entity | In scope/out of scope |
1 | For-profit private and for-profit public sector entities preparing special purpose financial statements | Not in scope |
2 | Not-for-profit private sector entities | |
Charities registered with the Australian Charities and Not-for-profits Commission (ACNC) | ||
that have annual revenue of $250,000 or more (ie medium and large charities), preparing special purpose financial statements and required to comply with the ACNC reporting requirements for such financial statements | In scope, must comply with AASB 1054 | |
that have annual revenue of less than $250,000 (ie small charities) | Not in scope | |
that have annual revenue of $250,000 or more, preparing special purpose financial statements and not required to comply with the ACNC reporting requirements for such financial statements | Not in scope | |
Not-for-profit entities not registered with ACNC | ||
lodging special purpose financial statements with the Australian Securities and Investments Commission (ASIC) under the Corporations Act 2001 (eg companies limited by guarantee) | In scope, must comply with AASB 1054 | |
required by Federal or State/Territory legislation to prepare financial statements in accordance with Australian Accounting Standards or accounting standards (eg incorporated associations, co-operatives and charitable fundraising organisations), that are preparing special purpose financial statements and not specifically required to comply with AASB 1054 | Not in scope | |
3 | Other not-for-profit entities, including not-for-profit public sector entities, entities not specified above and entities not required to comply with AASB 1054 by legislation or otherwise | Not in scope |
The following flowchart summarises some of the key decisions in determining how to apply the disclosure requirements in paragraph 9A of this Standard in relation to special purpose financial statements.
In disclosing the information required by paragraph 9A of this Standard, entities are not expected to provide quantitative information, or reconciliations, where accounting policies do not comply with all the recognition and measurement requirements in Australian Accounting Standards.
NoIs the entity required by legislation for the purposes of assessing its financial reporting requirements to determine whether or not its interests in other entities give rise to interests in subsidiaries, associates or joint ventures as defined in AASB 10 or AASB 128?Does the entity have any subsidiaries as defined in AASB 10 or investments in associates or joint ventures as defined in AASB 128?Has the entity consolidated its subsidiaries or equity accounted its investments in associates or joint ventures in a manner consistent with the requirements set out in AASB 10 or AASB 128 as appropriate?Disclose that fact and the reasons why (paragraph 9A(b) – see example 3)Disclose that fact (paragraph 9A(b) – see example 1)Accounting policy assessment step 1Assess whether each material accounting policy applied and disclosed in the financial statements complies with all the recognition and measurement requirements in Australian Accounting Standards (except for requirements set out in AASB 10 or AASB 128).Disclose that fact (paragraph 9A(b) – see example 2)YesYesYesYesNoNoNoHas the entity assessed whether or not its interests in other entities give rise to interests in subsidiaries, associates or joint ventures?For each material accounting policy, no disclosure of compliance is required (paragraph 9A(c) – see examples 1, 2 & 3)For each material accounting policy, disclose the non-assessment (paragraph 9A(c) – see examples 6 & 7)Accounting policy assessment step 2Based on the accounting policy assessment in step 1, with regard to the recognition and measurement requirements in Australian Accounting Standards (except for requirements set out in AASB 10 or AASB 128), disclose whether or not the financial statements overall (paragraph 9A(d)):comply (there are no instances of non-compliance or non-assessment) – see examples 1, 2 & 3;do not comply (there are one or more instances of non-compliance) – see examples 4, 5 & 6; orcompliance has not been assessed (there are one or more instances where compliance / non-compliance have not been assessed) – see examples 6 & 7.For each material accounting policy, disclose an indication of how the policy does not comply (paragraph 9A(c) – see examples 4, 5 & 6)CompliesDoes not complyNot assessedChart 1 – Not-for-profit private sector entities preparing special purpose financial statements