Application of Australian Accounting Standards (AASB1057_07-15_COMPdec22_01-23)

Unless specified otherwise in paragraphs 5A–21, Australian Accounting Standards apply to:

(a) each not-for-profit entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act and that is a reporting entity;

(b) general purpose financial statements of each other not-for-profit entity that is a reporting entity;

(c) each entity that elects to prepare financial statements that are, or are held out to be, general purpose financial statements;

(d) for-profit private sector entities that are required by legislation to prepare financial statements that comply with either Australian Accounting Standards or accounting standards; and

(e) other for-profit private sector entities that are required only by their constituting document or another document to prepare financial statements that comply with Australian Accounting Standards, provided that the relevant document was created or amended on or after 1 July 2021.

AASB 4 Insurance Contracts applies to:

(a)          general purpose financial statements of each public sector reporting entity; and

(b)       financial statements of each public sector entity that are, or are held out to be, general purpose financial statements;

in respect of annual periods beginning before 1 July 2026. However, a public sector entity may elect to apply AASB 17 Insurance Contracts instead of AASB 4.

AASB 8 Operating Segments and AASB 120 Accounting for Government Grants and Disclosure of Government Assistance apply as set out in paragraph 5, provided the entity is a for-profit entity.

AASB 17 Insurance Contracts applies as set out in paragraph 5, except when the entity is:

(a)          a superannuation entity applying AASB 1056; or

(b)          a public sector entity.

However, a public sector entity may elect to apply AASB 17 instead of both AASB 4 and AASB 1023 General Insurance Contracts.

Except as specified in paragraph 20C, AASB 101 Presentation of Financial Statements, AASB 107 Statement of Cash Flows, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors and AASB 1048 Interpretation of Standards apply to:

(a) each not-for-profit entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act;

(b) general purpose financial statements of each not-for-profit entity that is a reporting entity;

(c) each entity that elects to prepare financial statements that are, or are held out to be, general purpose financial statements;

(d) for-profit private sector entities that are required by legislation to prepare financial statements that comply with either Australian Accounting Standards or accounting standards; and

(e) other for-profit private sector entities that are required only by their constituting document or another document to prepare financial statements that comply with Australian Accounting Standards, provided that the relevant document was created or amended on or after 1 July 2021.

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AASB 133 Earnings per Share applies to:

(a)            each not-for-profit entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act and that is a reporting entity or discloses earnings per share; and

(b)            for-profit private sector entities that are required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act or disclose earnings per share.

AASB 134 Interim Financial Reporting applies to:

(a) each disclosing entity required to prepare half-year financial reports in accordance with Part 2M.3 of the Corporations Act;

(b) interim financial reports that are general purpose financial statements of each not-for-profit entity that is a reporting entity;

(c) each entity that elects to prepare interim financial reports that are, or are held out to be, general purpose financial statements; 

(d) interim financial reports of for-profit private sector entities that are required by legislation to prepare financial statements that comply with either Australian Accounting Standards or accounting standards; and

(e) interim financial reports of other for-profit private sector entities that are required only by their constituting document or another document to prepare financial statements that comply with Australian Accounting Standards, provided that the relevant document was created or amended on or after 1 July 2021.

AASB 1004 Contributions applies to general purpose financial statements of local governments, government departments, other government controlled not-for-profit entities and whole of governments.

AASB 1023 General Insurance Contracts applies to:

(a)            general purpose financial statements of each public sector reporting entity; and

(b)          financial statements of each public sector entity that are, or are held out to be, general purpose financial statements;

in respect of annual periods beginning before 1 July 2026. However, a public sector entity may elect to apply AASB 17 Insurance Contracts instead of AASB 1023.

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AASB 1039 Concise Financial Reports applies to a concise financial report prepared by an entity in accordance with paragraph 314(2)(a) in Part 2M.3 of the Corporations Act.

AASB 1049 applies to each government’s whole of government general purpose financial statements and GGS financial statements.

AASB 1050 Administered Items applies to general purpose financial statements of government departments.

AASB 1051 Land Under Roads applies to general purpose financial statements of local governments, government departments and whole of governments, and financial statements of GGSs.

AASB 1052 Disaggregated Disclosures applies to general purpose financial statements of local governments and government departments.

AASB 1053 Application of Tiers of Australian Accounting Standards applies to:

(a) each not-for-profit entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act;

(b) general purpose financial statements of each not-for-profit entity that is a reporting entity;

(c) each entity that elects to prepare financial statements that are, or are held out to be, general purpose financial statements;

(d) financial statements of GGSs prepared in accordance with AASB 1049;

(e) for-profit private sector entities that are required by legislation to prepare financial statements that comply with either Australian Accounting Standards or accounting standards; and

(f) other for-profit private sector entities that are required only by their constituting document or another document to prepare financial statements that comply with Australian Accounting Standards, provided that the relevant document was created or amended on or after 1 July 2021.

AASB 1054 Australian Additional Disclosures applies to:

(a)            each not-for-profit entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act;

(b)            general purpose financial statements of each not-for-profit entity that is a reporting entity;

(c)            each entity that elects to prepare financial statements that are, or are held out to be, general purpose financial statements;

(d)            for-profit private sector entities that are required by legislation to prepare financial statements that comply with either  Australian Accounting Standards or accounting standards; and

(e)            other for-profit private sector entities that are required only by their constituting document or another document to prepare financial statements that comply with Australian Accounting Standards.

AASB 1055 Budgetary Reporting applies to:

(a) whole of government general purpose financial statements of each government;

(b) financial statements of each government’s GGS;

(c) general purpose financial statements of each not-for-profit reporting entity within the GGS; and

(d) financial statements of each not-for-profit entity within the GGS that are, or are held out to be, general purpose financial statements.

AASB 1056 Superannuation Entities applies to:

(a) general purpose financial statements of each not-for-profit superannuation entity that is a reporting entity;

(b) each superannuation entity that elects to prepare financial statements that are held out to be general purpose financial statements;

(c) for-profit private sector superannuation entities that are required by legislation to prepare financial statements that comply with either Australian Accounting Standards or accounting standards; and

(d) other for-profit private sector superannuation entities that are required only by their constituting document or another document to prepare financial statements that comply with Australian Accounting Standards, provided that the relevant document was created or amended on or after 1 July 2021.

AASB 1058 Income of Not-for-Profit Entities applies to:

(a) each not-for-profit entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act and that is a reporting entity;

(b) general purpose financial statements of each other not-for-profit entity that is a reporting entity; and

(c) financial statements of a not-for-profit entity that are, or are held out to be, general purpose financial statements.

AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities applies as set out in paragraph 5, provided the entity is eligible to apply Tier 2 reporting requirements, as set out in AASB 1053, paragraph 13.

Entities applying AASB 1060 are not required to apply the following Australian Accounting Standards:

(a) AASB 7 Financial Instruments: Disclosures;

(b) AASB 12 Disclosure of Interests in Other Entities;

(c) AASB 101 Presentation of Financial Statements;

(d) AASB 107 Statement of Cash Flows; and

(e) AASB 124 Related Party Disclosures.

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