Tier 2 disclosures (AASB1060_03-20_COMPmar24_01-24)

[2]

This section explains fair presentation of financial statements, what compliance with Australian Accounting Standards, including this Standard, requires and what a complete set of financial statements is. [IFRS for SMEs Standard paragraph 3.1]

Financial statements shall present fairly the financial position, financial performance and cash flows of an entity. Fair presentation requires the faithful representation of the effects of transactions, other events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the Conceptual Framework for Financial Reporting:

(a) The application of the recognition and measurement requirements in Australian Accounting Standards and the disclosures in this Standard, with additional disclosure when necessary, is presumed to result in financial statements that achieve a fair presentation of the financial position, financial performance and cash flows of Tier 2 entities.

(b) As explained in paragraph 13 of AASB 1053, this Standard does not apply to an entity with public accountability.

The additional disclosures referred to in (a) are necessary when compliance with the specific requirements in this Standard is insufficient to enable users to understand the effect of particular transactions, other events and conditions on the entity’s financial position and financial performance. [Based on IFRS for SMEs Standard paragraph 3.2]

Notwithstanding paragraph 9, in respect of AusCF entities, financial statements shall present fairly the financial position, financial performance and cash flows of an entity. Fair presentation requires the faithful representation of the effects of transactions, other events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the Framework for the Preparation and Presentation of Financial Statements:

(a) The application of the recognition and measurement requirements in Australian Accounting Standards and the disclosures in this Standard, with additional disclosure when necessary, is presumed to result in financial statements that achieve a fair presentation of the financial position, financial performance and cash flows of Tier 2 entities.

(b) As explained in paragraph 13 of AASB 1053, this Standard does not apply to an entity with public accountability.

The additional disclosures referred to in (a) are necessary when compliance with the specific requirements in this Standard is insufficient to enable users to understand the effect of particular transactions, other events and conditions on the entity’s financial position and financial performance.

An entity whose financial statements comply with the recognition and measurement requirements in Australian Accounting Standards, the presentation requirements in those Standards as modified by this Standard, and the disclosure requirements in this Standard shall make an explicit and unreserved statement of such compliance in the notes. Financial statements shall not be described as complying with Australian Accounting Standards – Simplified Disclosures unless they comply with all of these requirements. [Based on IFRS for SMEs Standard paragraph 3.3]

An entity shall disclose in the notes:

(a) the statutory basis or other reporting framework, if any, under which the financial statements are prepared; and

(b) whether, for the purposes of preparing the financial statements, it is a for-profit or not-for-profit entity.

Entities applying Australian Accounting Standards – Simplified Disclosures shall not depart from a requirement in an Australian Accounting Standard, including this Standard.

In the extremely rare circumstances when management concludes that compliance with a recognition and measurement requirement in an Australian Accounting Standard, or a presentation and disclosure requirement in this Standard, would be so misleading that it would conflict with the objective of financial statements set out in the Conceptual Framework for Financial Reporting, but the relevant regulatory framework prohibits departure from the requirement, the entity shall, to the maximum extent possible, reduce the perceived misleading aspects of compliance by disclosing the following:

(a) the title of the Australian Accounting Standard in question, the nature of the requirement and the reason why management has concluded that complying with that requirement is so misleading in the circumstances that it conflicts with the objective of financial statements set out in the Conceptual Framework for Financial Reporting; and

(b) for each period presented, the adjustments to each item in the financial statements that management has concluded would be necessary to achieve a fair presentation.

[Based on IFRS for SMEs Standard paragraph 3.7]

Notwithstanding paragraph 13, in respect of AusCF entities, in the extremely rare circumstances when management concludes that compliance with a recognition and measurement requirement in an Australian Accounting Standard, or a presentation and disclosure requirement in this Standard, would be so misleading that it would conflict with the objective of financial statements set out in the Framework for the Preparation and Presentation of Financial Statements, but the relevant regulatory framework prohibits departure from the requirement, the entity shall, to the maximum extent possible, reduce the perceived misleading aspects of compliance by disclosing the following:

(a) the title of the Australian Accounting Standard in question, the nature of the requirement and the reason why management has concluded that complying with that requirement is so misleading in the circumstances that it conflicts with the objective of financial statements set out in the Framework for the Preparation and Presentation of Financial Statements; and

(b) for each period presented, the adjustments to each item in the financial statements that management has concluded would be necessary to achieve a fair presentation.

When preparing financial statements, the management of an entity using Australian Accounting Standards – Simplified Disclosures shall make an assessment of the entity’s ability to continue as a going concern. An entity is a going concern unless management either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but is not limited to, twelve months from the reporting date. [IFRS for SMEs Standard paragraph 3.8]

When management is aware, in making its assessment, of material uncertainties related to events or conditions that cast significant doubt upon the entity’s ability to continue as a going concern, the entity shall disclose those uncertainties. When an entity does not prepare financial statements on a going concern basis, it shall disclose that fact, together with the basis on which it prepared the financial statements and the reason why the entity is not regarded as a going concern. [IFRS for SMEs Standard paragraph 3.9]

An entity shall present a complete set of financial statements (including comparative information – see paragraph 20) at least annually. When the end of an entity’s reporting period changes and the annual financial statements are presented for a period longer or shorter than one year, the entity shall disclose the following:

(a) that fact;

(b) the reason for using a longer or shorter period; and

(c) the fact that comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.

[IFRS for SMEs Standard paragraph 3.10]

An entity shall retain the presentation and classification of items in the financial statements from one period to the next unless:

(a) it is apparent, following a significant change in the nature of the entity’s operations or a review of its financial statements, that another presentation or classification would be more appropriate having regard to the criteria for the selection and application of accounting policies in AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors; or

(b) Australian Accounting Standards – Simplified Disclosures require a change in presentation.

[IFRS for SMEs Standard paragraph 3.11]

When the presentation or classification of items in the financial statements is changed, an entity shall reclassify comparative amounts unless the reclassification is impracticable. When comparative amounts are reclassified, an entity shall disclose the following:

(a) the nature of the reclassification;

(b) the amount of each item or class of items that is reclassified; and

(c) the reason for the reclassification.

[IFRS for SMEs Standard paragraph 3.12]

If it is impracticable to reclassify comparative amounts, an entity shall disclose why reclassification was not practicable. [IFRS for SMEs Standard paragraph 3.13]

Except when this Standard permits or requires otherwise, an entity shall disclose comparative information in respect of the previous comparable period for all amounts presented in the current period’s financial statements. An entity shall include comparative information for narrative and descriptive information when it is relevant to an understanding of the current period’s financial statements. [IFRS for SMEs Standard paragraph 3.14]

An entity shall present separately each material class of similar items. An entity shall present separately items of a dissimilar nature or function unless they are immaterial. [IFRS for SMEs Standard paragraph 3.15]

Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity. [Based on IFRS for SMEs Standard paragraph 3.16]

This Standard specifies information that is required to be included in the financial statements, which include the notes. An entity need not provide a specific disclosure if the information resulting from that disclosure is not material. This is the case even if this Standard contains a list of specific requirements or describes them as minimum requirements.

An entity shall not offset assets and liabilities or income and expenses, unless required or permitted by an Australian Accounting Standard.

A complete set of financial statements of an entity shall include all of the following:

(a) a statement of financial position as at the reporting date;

(b) either:

(i) a single statement of profit or loss and other comprehensive income for the reporting period displaying all items of income and expense recognised during the period including those items recognised in determining profit or loss (which is a subtotal in the statement of comprehensive income) and items of other comprehensive income; or

(ii) a separate statement of profit or loss and a separate statement of comprehensive income. If an entity chooses to present both a statement of profit or loss and a statement of comprehensive income, the statement of comprehensive income begins with profit or loss and then displays the items of other comprehensive income;

(c) a statement of changes in equity for the reporting period;

(d) a statement of cash flows for the reporting period; and

(e) notes, comprising material accounting policy information and other explanatory information.

[Based on IFRS for SMEs Standard paragraph 3.17]

If the only changes to equity during the periods for which financial statements are presented arise from profit or loss, payment of dividends, corrections of prior period errors, and changes in accounting policy, the entity may present a single statement of income and retained earnings in place of the statement of comprehensive income and statement of changes in equity (see paragraph 62). [IFRS for SMEs Standard paragraph 3.18]

If an entity has no items of other comprehensive income in any of the periods for which financial statements are presented, it may present only a statement of profit or loss or it may present a statement of comprehensive income in which the ‘bottom line’ is labelled ‘profit or loss’. [IFRS for SMEs Standard paragraph 3.19]

Because paragraph 20 requires comparative amounts in respect of the previous period for all amounts presented in the financial statements, a complete set of financial statements means that an entity shall present, as a minimum, two of each of the required financial statements and related notes. [IFRS for SMEs Standard paragraph 3.20]

In a complete set of financial statements, an entity shall present each financial statement with equal prominence. [IFRS for SMEs Standard paragraph 3.21]

An entity may use titles for the financial statements other than those used in this Standard as long as they are not misleading. [IFRS for SMEs Standard paragraph 3.22]

An entity shall clearly identify each of the financial statements and the notes and distinguish them from other information in the same document. In addition, an entity shall display the following information prominently and repeat it when necessary for an understanding of the information presented:

(a) the name of the reporting entity and any change in its name since the end of the preceding reporting period;

(b) whether the financial statements cover the individual entity or a group of entities;

(c) the date of the end of the reporting period and the period covered by the financial statements;

(d) the presentation currency, as defined in AASB 121 The Effects of Changes in Foreign Exchange Rates; and

(e) the level of rounding, if any, used in presenting amounts in the financial statements.

[IFRS for SMEs Standard paragraph 3.23]

An entity shall disclose the following, if not disclosed elsewhere in information published with the financial statements:

(a) the domicile and legal form of the entity, its country of incorporation and the address of its registered office (or principal place of business, if different from the registered office); and

(b) a description of the nature of the entity’s operations and its principal activities.

[IFRS for SMEs Standard paragraph 3.24]

This Standard does not address presentation of segment information (AASB 8 Operating Segments), earnings per share (AASB 133 Earnings per Share), or interim financial reports (AASB 134). An entity making such disclosures shall apply the relevant Standards in preparing and presenting the information. [IFRS for SMEs Standard paragraph 3.25]

[3]

This section sets out the information that is to be presented in a statement of financial position and how to present it. The statement of financial position (sometimes called the balance sheet) presents an entity’s assets, liabilities and equity as of a specific date – the end of the reporting period. [IFRS for SMEs Standard paragraph 4.1]

As a minimum, the statement of financial position shall include line items that present the following amounts:

(a) cash and cash equivalents;

(b) trade and other receivables;

(c) financial assets (excluding amounts shown under (a), (b), (i) and (j));

(d) inventories;

(e) property, plant and equipment;

(f) investment property;

(g) intangible assets;

(h) biological assets;

(i) investments in associates;

(j) investments in joint ventures;

(k) trade and other payables;

(l) financial liabilities (excluding amounts shown under (k) and (o));

(m) liabilities and assets for current tax;

(n) deferred tax liabilities and deferred tax assets (these shall always be classified as non-current);

(o) provisions;

(p) non-controlling interests, presented within equity separately from the equity attributable to the owners of the parent;

(q) equity attributable to the owners of the parent;

(r) the total of assets classified as held for sale and assets included in disposal groups classified as held for sale in accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations; and

(s) liabilities included in disposal groups classified as held for sale in accordance with AASB 5.

[Based on IFRS for SMEs Standard paragraph 4.2]

An entity shall present additional line items, headings and subtotals in the statement of financial position when such presentation is relevant to an understanding of the entity’s financial position. [IFRS for SMEs Standard paragraph 4.3]

An entity shall present current and non-current assets, and current and non-current liabilities, as separate classifications in its statement of financial position in accordance with paragraphs 38–41, except when a presentation based on liquidity provides information that is reliable and more relevant. When that exception applies, all assets and liabilities shall be presented in order of approximate liquidity (ascending or descending). [IFRS for SMEs Standard paragraph 4.4]

An entity shall classify an asset as current when:

(a) it expects to realise the asset, or intends to sell or consume it, in the entity’s normal operating cycle;

(b) it holds the asset primarily for the purpose of trading;

(c) it expects to realise the asset within twelve months after the reporting date; or

(d) the asset is cash or a cash equivalent, unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.

[IFRS for SMEs Standard paragraph 4.5]

An entity shall classify all other assets as non-current. When the entity’s normal operating cycle is not clearly identifiable, its duration is assumed to be twelve months. [IFRS for SMEs Standard paragraph 4.6]

An entity shall classify a liability as current when:

(a) it expects to settle the liability in the entity’s normal operating cycle;

(b) it holds the liability primarily for the purpose of trading;

(c) the liability is due to be settled within twelve months after the reporting date; or

(d) the entity does not have right at the reporting date to defer settlement of the liability for at least twelve months after the reporting date.

[Based on IFRS for SMEs Standard paragraph 4.7]

An entity shall classify all other liabilities as non-current. [IFRS for SMEs Standard paragraph 4.8]

Terms of a liability that could, at the option of the counterparty, result in its settlement by the transfer of the entity’s own equity instruments do not affect its classification as current or non-current if, applying AASB 132 Financial Instruments: Presentation, the entity classifies the option as an equity instrument, recognising it separately from the liability as an equity component of a compound financial instrument.

This Standard does not prescribe the sequence or format in which items are to be presented. Paragraph 35 simply provides a list of items that are sufficiently different in nature or function to warrant separate presentation in the statement of financial position. In addition:

(a) line items are included when the size, nature or function of an item or aggregation of similar items is such that separate presentation is relevant to an understanding of the entity’s financial position; and

(b) the descriptions used and the sequencing of items or aggregation of similar items may be amended according to the nature of the entity and its transactions, to provide information that is relevant to an understanding of the entity’s financial position.

[IFRS for SMEs Standard paragraph 4.9]

The judgement on whether additional items are presented separately is based on an assessment of all of the following:

(a) the amounts, nature and liquidity of assets;

(b) the function of assets within the entity; and

(c) the amounts, nature and timing of liabilities.

[IFRS for SMEs Standard paragraph 4.10]

An entity shall disclose, either in the statement of financial position or in the notes, further subclassifications of the line items presented, classified in a manner appropriate to the entity’s operation. This includes for example:

(a) property, plant and equipment in classifications appropriate to the entity;

(b) trade and other receivables showing separately amounts due from related parties, amounts due from other parties and contract assets from contracts with customers;

(c) inventories, showing separately amounts of inventories:

(i) held for sale in the ordinary course of business;

(ii) in the process of production for such sale; and

(iii) in the form of materials or supplies to be consumed in the production process or in the rendering of services.

(d) trade and other payables, showing separately amounts payable to trade suppliers, amounts payable to related parties, contract liabilities from contracts with customers and accruals;

(e) provisions for employee benefits and other provisions; and

(f) classes of equity, such as paid-in capital, share premium, retained earnings and items of income and expense that, as required by Australian Accounting Standards, are recognised in other comprehensive income and presented separately in equity.

[Based on IFRS for SMEs Standard paragraph 4.11]

An entity with share capital shall disclose the following, either in the statement of financial position or in the notes:

(a) for each class of share capital:

(i) the number of shares authorised;

(ii) the number of shares issued and fully paid, and issued but not fully paid;

(iii) par value per share or that the shares have no par value;

(iv) a reconciliation of the number of shares outstanding at the beginning and at the end of the period. This reconciliation need not be presented for prior periods;

(v) the rights, preferences and restrictions attaching to that class including restrictions on the distribution of dividends and the repayment of capital;

(vi) shares in the entity held by the entity or by its subsidiaries or associates; and

(vii) shares reserved for issue under options and contracts for the sale of shares, including the terms and amounts; and

(b) a description of each reserve within equity.

[IFRS for SMEs Standard paragraph 4.12]

An entity without share capital, such as a partnership or trust, shall disclose information equivalent to that required by paragraph 45(a), showing changes during the period in each category of equity, and the rights, preferences and restrictions attaching to each category of equity. [IFRS for SMEs Standard paragraph 4.13]

If, at the reporting date, an entity has any assets classified as held for sale, or assets and liabilities that are included in a disposal group that is classified as held for sale, the entity shall disclose the following information:

(a) a description of the asset(s) or the group of assets and liabilities; and

(b) a description of the facts and circumstances of the sale, or leading to the expected disposal, and the expected manner and timing of that disposal.

[Based on IFRS for SMEs Standard paragraph 4.14]

In applying paragraph 40, an entity might classify liabilities arising from loan arrangements as non‑current when the entity’s right to defer settlement of those liabilities is subject to the entity complying with covenants within twelve months after the reporting date. In such situations, the entity shall disclose information in the notes that enables users of financial statements to understand the risk that the liabilities could become repayable within twelve months after the reporting date, including: 

(a) information about the covenants (including the nature of the covenants and when the entity is required to comply with them) and the carrying amount of related liabilities; and 

(b) facts and circumstances, if any, that indicate the entity may have difficulty complying with the covenants - for example, the entity having acted during or after the reporting period to avoid or mitigate a potential breach. Such facts and circumstances could also include the fact that the entity would not have complied with the covenants if they were to be assessed for compliance based on the entity’s circumstances at the reporting date.

[4]

This section requires an entity to present its total comprehensive income for a period—ie its financial performance for the period—in one or two financial statements. It sets out the information that is to be presented in those statements or in the notes and how to present it. [Based on IFRS for SMEs Standard paragraph 5.1]

An entity shall present its total comprehensive income for a period either:

(a) in a single statement of profit or loss and other comprehensive income, in which case the statement of comprehensive income presents all items of income and expense recognised in the period; or

(b) in two statements—a statement of profit or loss and a statement of comprehensive income—in which case the statement of profit or loss presents all items of income and expense recognised in the period except those that are recognised in total comprehensive income outside of profit or loss as permitted or required by other Australian Accounting Standards.

[IFRS for SMEs Standard paragraph 5.2]

A change from the single-statement approach to the two-statement approach, or vice versa, is a change in accounting policy to which AASB 108 applies. [IFRS for SMEs Standard paragraph 5.3]

Under the single-statement approach, the statement of profit or loss and other comprehensive income shall include all items of income and expense recognised in a period unless other Australian Accounting Standards require otherwise. Australian Accounting Standards provide different treatment for the following circumstances:

(a) the effects of corrections of errors and changes in accounting policies are presented as retrospective adjustments of prior periods instead of as part of profit or loss in the period in which they arise (see AASB 108); and

(b) items of other comprehensive income are recognised as part of total comprehensive income, outside of profit or loss, when they arise.

[Based on IFRS for SMEs Standard paragraph 5.4]

As a minimum, an entity shall include, in the statement(s) presenting profit or loss and other comprehensive income, line items that present the following amounts for the period:

(a) revenue;

(b) finance costs;

(c) share of the profit or loss of investments in associates and joint ventures accounted for using the equity method (see AASB 128 Investments in Associates and Joint Ventures);

(d) tax expense;

(e) a single amount for the total of:

(i) discontinued operations (see AASB 5 Non-current Assets Held for Sale and Discontinued Operations); and

(ii) the post-tax gain or loss attributable to an impairment, or reversal of an impairment, of the assets in the discontinued operation (see AASB 5), both at the time and subsequent to being classified as a discontinued operation and to the disposal of the net assets constituting the discontinued operation;

(f) profit or loss (if an entity has no items of other comprehensive income, this line need not be presented);

(g) each item of other comprehensive income (see paragraph 51(b)) classified by nature (excluding amounts in (h)). Such items shall be grouped into those that, in accordance with other Australian Accounting Standards:

(i) will not be reclassified subsequently to profit or loss; and

(ii) will be reclassified subsequently to profit or loss when specific conditions are met;

(h) share of the other comprehensive income of associates and joint ventures accounted for by the equity method; and

(i) total comprehensive income (if an entity has no items of other comprehensive income, it may use another term for this line such as profit or loss).

[Based on IFRS for SMEs Standard paragraph 5.5]

An entity shall disclose separately the following items in the statement(s) presenting profit or loss and other comprehensive income as allocations for the period:

(a) profit or loss for the period attributable to:

(i) non-controlling interests; and

(ii) owners of the parent; and

(b) total comprehensive income for the period attributable to:

(i) non-controlling interests; and

(ii) owners of the parent.

[IFRS for SMEs Standard paragraph 5.6]

Under the two-statement approach, the statement of profit or loss shall display, as a minimum, line items that present the amounts in paragraph 52(a)–52(f) for the period, with profit or loss as the last line. The statement of comprehensive income shall begin with profit or loss as its first line and shall display, as a minimum, line items that present the amounts in paragraph 52(g)–52(i) and paragraph 53 for the period. [IFRS for SMEs Standard paragraph 5.7]

Under AASB 108, the effects of corrections of errors and changes in accounting policies are presented as retrospective adjustments of prior periods instead of as part of profit or loss in the period in which they arise. [IFRS for SMEs Standard paragraph 5.8]

An entity shall present additional line items, headings and subtotals in the statement(s) presenting profit or loss and other comprehensive income (and in the statement of profit or loss, if presented), when such presentation is relevant to an understanding of the entity’s financial performance. [IFRS for SMEs Standard paragraph 5.9]

An entity shall not present or describe any items of income and expense as ‘extraordinary items’ in the statement(s) presenting profit or loss and other comprehensive income (or in the statement of profit or loss, if presented) or in the notes. [IFRS for SMEs Standard paragraph 5.10]

An entity shall present in the statement of profit or loss and other comprehensive income or in the notes an analysis of expenses using a classification based on either the nature of expenses or the function of expenses within the entity, whichever provides information that is reliable and more relevant.

Analysis by nature of expense

(a) Under this method of classification, expenses are aggregated in the statement(s) of profit and loss and other comprehensive income according to their nature (for example, depreciation, purchases of materials, transport costs, employee benefits and advertising costs) and are not reallocated among various functions within the entity.

Analysis by function of expense

(b) Under this method of classification, expenses are aggregated according to their function as part of cost of sales or, for example, the costs of distribution or administrative activities. At a minimum, an entity discloses its cost of sales under this method separately from other expenses.

[Based on IFRS for SMEs Standard paragraph 5.11]

[5]

This section sets out requirements for presenting the changes in an entity’s equity for a period, either in a statement of changes in equity or, if specified conditions are met and an entity chooses, in a statement of income and retained earnings. [IFRS for SMEs Standard paragraph 6.1]

The statement of changes in equity presents an entity’s profit or loss for a reporting period, other comprehensive income for the period, the effects of changes in accounting policies and corrections of errors recognised in the period and the amounts of investments by, and dividends and other distributions to, owners in their capacity as owners during the period. [IFRS for SMEs Standard paragraph 6.2]

The statement of changes in equity includes the following information:

(a) total comprehensive income for the period, showing separately the total amounts attributable to owners of the parent and to non-controlling interests;

(b) for each component of equity, the effects of retrospective application or retrospective restatement recognised in accordance with AASB 108; and

(c) for each component of equity, a reconciliation between the carrying amount at the beginning and the end of the period, separately disclosing changes resulting from:

(i) profit or loss;

(ii) other comprehensive income; and

(iii) the amounts of investments by, and dividends and other distributions to, owners in their capacity as owners, showing separately issues of shares, treasury share transactions, dividends and other distributions to owners and changes in ownership interests in subsidiaries that do not result in a loss of control.

[IFRS for SMEs Standard paragraph 6.3]

The statement of income and retained earnings presents an entity’s profit or loss and changes in retained earnings for a reporting period. Paragraph 26 permits an entity to present a statement of income and retained earnings in place of a statement of comprehensive income and a statement of changes in equity if the only changes to its equity during the periods for which financial statements are presented arise from profit or loss, payment of dividends, corrections of prior period errors, and changes in accounting policy. [IFRS for SMEs Standard paragraph 6.4]

An entity shall present, in the statement of income and retained earnings, the following items in addition to the information required by the section covering the Statement of Profit or Loss and Other Comprehensive Income:

(a) retained earnings at the beginning of the reporting period;

(b) dividends declared and paid or payable during the period;

(c) restatements of retained earnings for corrections of prior period errors;

(d) restatements of retained earnings for changes in accounting policy; and

(e) retained earnings at the end of the reporting period.

[IFRS for SMEs Standard paragraph 6.5]

[6]

This section sets out the information that is to be presented in a statement of cash flows and how to present it. The statement of cash flows provides information about the changes in cash and cash equivalents of an entity for a reporting period, showing separately changes from operating activities, investing activities and financing activities. [IFRS for SMEs Standard paragraph 7.1]

Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value. They are held to meet short-term cash commitments instead of for investment or other purposes. Consequently, an investment normally qualifies as a cash equivalent only when it has a short maturity of, say, three months or less from the date of acquisition. Bank overdrafts are normally considered financing activities similar to borrowings. However, if they are repayable on demand and form an integral part of an entity’s cash management, bank overdrafts are a component of cash and cash equivalents. [IFRS for SMEs Standard paragraph 7.2]

An entity shall present a statement of cash flows that presents cash flows for a reporting period classified by operating activities, investing activities and financing activities. [IFRS for SMEs Standard paragraph 7.3]

Operating activities are the principal revenue-producing activities of the entity. Consequently, cash flows from operating activities generally result from the transactions and other events and conditions that enter into the determination of profit or loss. Examples of cash flows from operating activities are:

(a) cash receipts from the sale of goods and the rendering of services;

(b) cash receipts from royalties, fees, commissions and other revenue;

(c) cash payments to suppliers for goods and services;

(d) cash payments to and on behalf of employees;

(e) cash payments or refunds of income tax, unless they can be specifically identified with financing and investing activities; and

(f) cash receipts and payments from investments, loans and other contracts held for dealing or trading purposes, which are similar to inventory acquired specifically for resale.

Some transactions, such as the sale of an item of plant by a manufacturing entity, may give rise to a gain or loss that is included in profit or loss. However, the cash flows relating to such transactions are cash flows from investing activities. [IFRS for SMEs Standard paragraph 7.4]

Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents. Examples of cash flows arising from investing activities are:

(a) cash payments to acquire property, plant and equipment (including self-constructed property, plant and equipment), intangible assets and other long-term assets;

(b) cash receipts from sales of property, plant and equipment, intangibles and other long-term assets;

(c) cash payments to acquire equity or debt instruments of other entities and interests in joint ventures (other than payments for those instruments classified as cash equivalents or held for dealing or trading);

(d) cash receipts from sales of equity or debt instruments of other entities and interests in joint ventures (other than receipts for those instruments classified as cash equivalents or held for dealing or trading);

(e) cash advances and loans made to other parties;

(f) cash receipts from the repayment of advances and loans made to other parties;

(g) cash payments for futures contracts, forward contracts, option contracts and swap contracts, except when the contracts are held for dealing or trading, or the payments are classified as financing activities; and

(h) cash receipts from futures contracts, forward contracts, option contracts and swap contracts, except when the contracts are held for dealing or trading, or the receipts are classified as financing activities.

When a contract is accounted for as a hedge (see AASB 9 Financial Instruments and AASB 139 Financial Instruments: Recognition and Measurement), an entity shall classify the cash flows of the contract in the same manner as the cash flows of the item being hedged. [IFRS for SMEs Standard paragraph 7.5]

Financing activities are activities that result in changes in the size and composition of the contributed equity and borrowings of an entity. Examples of cash flows arising from financing activities are:

(a) cash proceeds from issuing shares or other equity instruments;

(b) cash payments to owners to acquire or redeem the entity’s shares;

(c) cash proceeds from issuing debentures, loans, notes, bonds, mortgages and other short-term or long-term borrowings;

(d) cash repayments of amounts borrowed; and

(e) cash payments by a lessee for the reduction of the outstanding liability relating to a lease.

[IFRS for SMEs Standard paragraph 7.6]

An entity shall present cash flows from operating activities using either:

(a) the indirect method, whereby profit or loss is adjusted for the effects of non-cash transactions, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expense associated with investing or financing cash flows; or

(b) the direct method, whereby major classes of gross cash receipts and gross cash payments are disclosed.

[IFRS for SMEs Standard paragraph 7.7]

Under the indirect method, the net cash flow from operating activities is determined by adjusting profit or loss for the effects of:

(a) changes during the period in inventories and operating receivables and payables;

(b) non-cash items such as depreciation, provisions, deferred tax, accrued income (expenses) not yet received (paid) in cash, unrealised foreign currency gains and losses, undistributed profits of associates and non-controlling interests; and

(c) all other items for which the cash effects relate to investing or financing.

[IFRS for SMEs Standard paragraph 7.8]

Alternatively, the net cash flow from operating activities may be presented under the indirect method by showing the revenues and expenses disclosed in the statement of comprehensive income and the changes during the period in inventories and operating receivables and payables.

Under the direct method, net cash flow from operating activities is presented by disclosing information about major classes of gross cash receipts and gross cash payments. Such information may be obtained either:

(a) from the accounting records of the entity; or

(b) by adjusting sales, cost of sales and other items in the statement of comprehensive income (or the statement of profit or loss, if presented) for:

(i) changes during the period in inventories and operating receivables and payables;

(ii) other non-cash items; and

(iii) other items for which the cash effects are investing or financing cash flows.

[IFRS for SMEs Standard paragraph 7.9]

An entity shall present separately major classes of gross cash receipts and gross cash payments arising from investing and financing activities. The aggregate cash flows arising from acquisitions and from disposals of subsidiaries or other business units shall be presented separately and classified as investing activities. [IFRS for SMEs Standard paragraph 7.10]

Cash flows arising from the following operating, investing or financing activities may be reported on a net basis:

(a) cash receipts and payments on behalf of customers when the cash flows reflect the activities of the customer rather than those of the entity; and

(b) cash receipts and payments for items in which the turnover is quick, the amounts are large, and the maturities are short.

Examples of cash receipts and payments referred to in paragraph 75(a) are:

(a) the acceptance and repayment of demand deposits of a bank;

(b) funds held for customers by an investment entity; and

(c) rents collected on behalf of, and paid over to, the owners of properties.

Examples of cash receipts and payments referred to in paragraph 75(b) are advances made for, and the repayment of:

(a) principal amounts relating to credit card customers;

(b) the purchase and sale of investments; and

(c) other short-term borrowings, for example, those which have a maturity period of three months or less.

Cash flows arising from each of the following activities of a financial institution may be reported on a net basis:

(a) cash receipts and payments for the acceptance and repayment of deposits with a fixed maturity date;

(b) the placement of deposits with and withdrawal of deposits from other financial institutions; and

(c) cash advances and loans made to customers and the repayment of those advances and loans.

An entity shall record cash flows arising from transactions in a foreign currency in the entity’s functional currency by applying to the foreign currency amount the exchange rate between the functional currency and the foreign currency at the date of the cash flow. Paragraph 40 in AASB 121 explains when an exchange rate that approximates the actual rate can be used. [IFRS for SMEs Standard paragraph 7.11]

The entity shall translate cash flows of a foreign subsidiary at the exchange rates between the entity’s functional currency and the foreign currency at the dates of the cash flows. [IFRS for SMEs Standard paragraph 7.12]

Unrealised gains and losses arising from changes in foreign currency exchange rates are not cash flows. However, to reconcile cash and cash equivalents at the beginning and the end of the period, the effect of exchange rate changes on cash and cash equivalents held or due in a foreign currency must be presented in the statement of cash flows. Consequently, the entity shall remeasure cash and cash equivalents held during the reporting period (such as amounts of foreign currency held and foreign currency bank accounts) at period-end exchange rates. The entity shall present the resulting unrealised gain or loss separately from cash flows from operating, investing and financing activities. [IFRS for SMEs Standard paragraph 7.13]

An entity shall present separately cash flows from interest and dividends received and paid. The entity shall classify cash flows consistently from period to period as operating, investing or financing activities. [IFRS for SMEs Standard paragraph 7.14]

An entity may classify interest paid and interest and dividends received as operating cash flows because they are included in profit or loss. Alternatively, the entity may classify interest paid and interest and dividends received as financing cash flows and investing cash flows respectively, because they are costs of obtaining financial resources or returns on investments. [IFRS for SMEs Standard paragraph 7.15]

An entity may classify dividends paid as a financing cash flow because they are a cost of obtaining financial resources. Alternatively, the entity may classify dividends paid as a component of cash flows from operating activities because they are paid out of operating cash flows. [IFRS for SMEs Standard paragraph 7.16]

An entity shall present separately cash flows arising from income tax and shall classify them as cash flows from operating activities unless they can be specifically identified with financing and investing activities. When tax cash flows are allocated over more than one class of activity, the entity shall disclose the total amount of taxes paid. [IFRS for SMEs Standard paragraph 7.17]

An entity shall exclude from the statement of cash flows investing and financing transactions that do not require the use of cash or cash equivalents. An entity shall disclose such transactions elsewhere in the financial statements in a way that provides all the relevant information about those investing and financing activities. [IFRS for SMEs Standard paragraph 7.18]

Many investing and financing activities do not have a direct impact on current cash flows even though they affect the capital and asset structure of an entity. The exclusion of non-cash transactions from the statement of cash flows is consistent with the objective of a statement of cash flows because these items do not involve cash flows in the current period. Examples of non-cash transactions are:

(a) the acquisition of assets either by assuming directly related liabilities or by means of a lease;

(b) the acquisition of an entity by means of an equity issue; and

(c) the conversion of debt to equity.

[IFRS for SMEs Standard paragraph 7.19]

An entity shall present the components of cash and cash equivalents and shall present a reconciliation of the amounts presented in the statement of cash flows to the equivalent items presented in the statement of financial position. However, an entity is not required to present this reconciliation if the amount of cash and cash equivalents presented in the statement of cash flows is identical to the amount similarly described in the statement of financial position. [IFRS for SMEs Standard paragraph 7.20]

An entity shall disclose, together with a commentary by management, the amount of significant cash and cash equivalent balances held by the entity that are not available for use by the entity. Cash and cash equivalents held by an entity may not be available for use by the entity because of, among other reasons, foreign exchange controls or legal restrictions. [IFRS for SMEs Standard paragraph 7.21]

[7]

This section sets out the principles underlying information that is to be presented in the notes to the financial statements and how to present it. Notes contain information in addition to that presented in the statement of financial position, the statement of profit or loss  and other comprehensive income (if presented), the statement of profit or loss and the statement of comprehensive income (if presented), the combined statement of income and retained earnings (if presented), the statement of changes in equity (if presented) and the statement of cash flows. Notes provide narrative descriptions or disaggregations of items presented in those statements and information about items that do not qualify for recognition in those statements. In addition to the requirements of this section, nearly every other section of this Standard requires disclosures that are normally presented in the notes. [IFRS for SMEs Standard paragraph 8.1]

The notes shall:

(a) present information about the basis of preparation of the financial statements and the specific accounting policies used, in accordance with paragraphs 95–97;

(b) disclose the information required by this Standard that is not presented elsewhere in the financial statements; and

(c) provide information that is not presented elsewhere in the financial statements but is relevant to an understanding of any of them.

[IFRS for SMEs Standard paragraph 8.2]

An entity shall, as far as practicable, present the notes in a systematic manner. An entity shall cross-reference each item in the financial statements to any related information in the notes. [IFRS for SMEs Standard paragraph 8.3]

Examples of systematic ordering or grouping of the notes include:

(a) giving prominence to the areas of its activities that the entity considers to be most relevant to an understanding of its financial performance and financial position, such as grouping together information about particular operating activities;

(b) grouping together information about items measured similarly such as assets measured at fair value; or

(c) following the order of the line items in the statement(s) of profit or loss and other comprehensive income and the statement of financial position, such as:

(i) statement of compliance with Australian Accounting Standards – Simplified Disclosures (see paragraph 10);

(ii) material accounting policy information (see paragraph 95);

(iii) supporting information for items presented in the statements of financial position and in the statement(s) of profit or loss and other comprehensive income, and in the statements of changes in equity and of cash flows, in the order in which each statement and each line item is presented; and

(iv) other disclosures, including:

(1) contingent liabilities (see paragraph 154) and unrecognised contractual commitments; and

(2) non-financial disclosures.

[Based on IFRS for SMEs  Standard paragraph 8.4]

An entity may present notes providing information about the basis of preparation of the financial statements and specific accounting policies as a separate section of the financial statements.

An entity shall disclose material accounting policy information (see Appendix A). Accounting policy information is material if, when considered together with other information included in an entity’s financial statements, it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements.

[Based on IFRS for SMEs Standard paragraph 8.5]

An entity shall disclose, in the material accounting policy information or other notes, the judgements, apart from those involving estimations (see paragraph 97), that management has made in the process of applying the entity’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

[Based on IFRS for SMEs Standard paragraph 8.6]

An entity shall disclose in the notes information about the key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. In respect of those assets and liabilities, the notes shall include details of:

(a) their nature; and

(b) their carrying amount as at the end of the reporting period.

[IFRS for SMEs Standard paragraph 8.7]

An entity shall disclose fees to each auditor or reviewer, including any network firm, separately for:

(a) the audit or review of the financial statements; and

(b) all other services performed during the reporting period.

For paragraph 98, an entity shall describe the nature of other services.

The term ‘imputation credits’ is used in paragraphs 101-103 to also mean ‘franking credits’. The disclosures required by paragraphs 101 and 103 shall be made separately in respect of any New Zealand imputation credits and any Australian imputation credits.

An entity shall disclose the amount of imputation credits available for use in subsequent reporting periods.

For the purposes of determining the amount required to be disclosed in accordance with paragraph 101, entities may have:

(a) imputation credits that will arise from the payment of the amount of the provision for income tax;

(b) imputation debits that will arise from the payment of dividends recognised as a liability at the reporting date; and

(c) imputation credits that will arise from the receipt of dividends recognised as receivables at the reporting date.

Where there are different classes of investors with different entitlements to imputation credits, disclosures shall be made about the nature of those entitlements for each class where this is relevant to an understanding of them.

[8]

The following disclosures shall be made in consolidated financial statements:

(a) the fact that the statements are consolidated financial statements;

(b) the basis for concluding that control exists when the parent does not own, directly or indirectly through subsidiaries, more than half of the voting power;

(c) any difference in the reporting date of the financial statements of the parent and its subsidiaries used in the preparation of the consolidated financial statements; and

(d) the nature and extent of any significant restrictions (for example resulting from borrowing arrangements or regulatory requirements) on the ability of subsidiaries to transfer funds to the parent in the form of cash dividends or to repay loans.

[IFRS for SMEs Standard paragraph 9.23]

When a parent, an investor in an associate or a venturer with an interest in a joint venture prepares separate financial statements, those separate financial statements shall disclose:

(a) that the statements are separate financial statements; and

(b) a description of the methods used to account for the investments in subsidiaries, joint ventures and associates,

and shall identify the consolidated financial statements or other primary financial statements to which they relate.

[IFRS for SMEs Standard paragraph 9.27]

[9]

Subject to paragraph 107, when initial application of an Australian Accounting Standard has an effect on the current period or any prior period, or might have an effect on future periods, an entity shall disclose the following:

(a) the nature of the change in accounting policy;

(b) for the current period and each prior period presented, to the extent practicable, the amount of the adjustment for each financial statement line item affected;

(c) the amount of the adjustment relating to periods before those presented, to the extent practicable; and

(d) an explanation if it is impracticable to determine the amounts to be disclosed in (b) or (c).

Financial statements of subsequent periods need not repeat these disclosures.

[Based on IFRS for SMEs Standard paragraph 10.13]

Where an entity has selected a transition option under another Standard and there are specific transition disclosure requirements in that Standard, the entity shall apply the full transition disclosure requirements in that Standard instead of the requirements in paragraph 106.

In the reporting period in which an entity first applies AASB 2020-8 Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform – Phase 2, the entity is not required to disclose the information that would otherwise be required by paragraph 106(b) in respect of the accounting policy changes made in applying AASB 2020-8.

When a voluntary change in accounting policy has an effect on the current period or any prior period, an entity shall disclose the following:

(a) the nature of the change in accounting policy;

(b) the reasons why applying the new accounting policy provides reliable and more relevant information;

(c) to the extent practicable, the amount of the adjustment for each financial statement line item affected, shown separately:

(i) for the current period;

(ii) for each prior period presented; and

(iii) in the aggregate for periods before those presented; and

(d) an explanation if it is impracticable to determine the amounts to be disclosed in (c).

Financial statements of subsequent periods need not repeat these disclosures.

[IFRS for SMEs Standard paragraph 10.14]

An entity shall disclose the nature of any change in an accounting estimate and the effect of the change on assets, liabilities, income and expense for the current period. If it is practicable for the entity to estimate the effect of the change in one or more future periods, the entity shall disclose those estimates. [IFRS for SMEs Standard paragraph 10.18]

An entity shall disclose the following about prior period errors:

(a) the nature of the prior period error;

(b) for each prior period presented, to the extent practicable, the amount of the correction for each financial statement line item affected;

(c) to the extent practicable, the amount of the correction at the beginning of the earliest prior period presented; and

(d) an explanation if it is not practicable to determine the amounts to be disclosed in (b) or (c).

Financial statements of subsequent periods need not repeat these disclosures.

[IFRS for SMEs Standard paragraph 10.23]

[10]

The disclosures required in this Section apply to all financial instruments within the scope of AASB 9. In addition, if the entity uses hedge accounting, it shall make the additional disclosures in paragraphs 120–122.

In accordance with paragraph 95, an entity shall disclose material accounting policy information. Information about the measurement basis (or bases) for financial instruments used in preparing the financial statements is expected to be material accounting policy information.

[Based on IFRS for SMEs Standard paragraph 11.40]

An entity shall disclose the carrying amounts of each of the following categories of financial assets and financial liabilities at the reporting date, in total, either in the statement of financial position or in the notes:

(a) financial assets measured at fair value through profit or loss;

(b) financial assets measured at amortised cost;

(c) financial liabilities measured at fair value through profit or loss;

(d) financial liabilities measured at amortised cost; and

(e) financial assets measured at fair value through other comprehensive income, showing separately:

(i) financial assets that are measured at fair value through other comprehensive income in accordance with paragraph 4.1.2A of AASB 9; and

(ii) investments in equity instruments designated as such upon initial recognition in accordance with paragraph 5.7.5 of AASB 9.

[Based on IFRS for SMEs Standard paragraph 11.41]

An entity shall disclose information that enables users of its financial statements to evaluate the significance of financial instruments for its financial position and performance. For example, for long-term debt such information would normally include the terms and conditions of the debt instrument (such as interest rate, maturity, repayment schedule, and restrictions that the debt instrument imposes on the entity). [IFRS for SMEs Standard paragraph 11.42]

For all financial assets and financial liabilities measured at fair value, the entity shall disclose the basis for determining fair value, for example, quoted market price in an active market or a valuation technique. When a valuation technique is used, the entity shall disclose the assumptions applied in determining fair value for each class of financial assets or financial liabilities. For example, if applicable, an entity discloses information about the assumptions relating to prepayment rates, rates of estimated credit losses, and interest rates or discount rates. [IFRS for SMEs Standard paragraph 11.43]

If an entity has transferred financial assets to another party in a transaction that does not qualify for derecognition (see paragraph 3.2.15 of AASB 9), the entity shall disclose the following for each class of such financial assets:

(a) the nature of the assets;

(b) the nature of the risks and rewards of ownership to which the entity remains exposed; and

(c) the carrying amounts of the assets and of any associated liabilities that the entity continues to recognise.

[IFRS for SMEs Standard paragraph 11.45]

When an entity has pledged financial assets as collateral for liabilities or contingent liabilities, it shall disclose the following:

(a) the carrying amount of the financial assets pledged as collateral; and

(b) the terms and conditions relating to its pledge.

[IFRS for SMEs Standard paragraph 11.46]

For loans payable recognised at the reporting date for which there is a breach of terms or a default of principal, interest, sinking fund or redemption terms that have not been remedied by the reporting date, an entity shall disclose the following:

(a) details of that breach or default;

(b) the carrying amount of the related loans payable at the reporting date; and

(c) whether the breach or default was remedied, or the terms of the loans payable were renegotiated, before the financial statements were authorised for issue.

[IFRS for SMEs Standard paragraph 11.47]

An entity shall disclose the following items of income, expense, gains or losses:

(a) income, expense, gains or losses, including changes in fair value, recognised on:

(i) financial assets measured at fair value through profit or loss;

(ii) financial liabilities measured at fair value through profit or loss;

(iii) financial assets measured at amortised cost;

(iv) financial liabilities measured at amortised cost;

(v) investments in equity instruments designated at fair value through other comprehensive income in accordance with paragraph 5.7.5 of AASB 9; and

(vi) financial assets measured at fair value through other comprehensive income in accordance with paragraph 4.1.2A of AASB 9, showing separately the amount of gain or loss recognised in other comprehensive income during the period and the amount reclassified upon derecognition from accumulated other comprehensive income to profit or loss for the period;

(b) total interest income and total interest expense (calculated using the effective interest method) for financial assets or financial liabilities that are not measured at fair value through profit or loss; and

(c) the amount of any impairment loss for each class of financial asset.

[Based on IFRS for SMEs Standard paragraph 11.48]

Supplier finance arrangements are characterised by one or more finance providers offering to pay amounts an entity owes its suppliers and the entity agreeing to pay according to the terms and conditions of the arrangements at the same date as, or a date later than, suppliers are paid. These arrangements provide the entity with extended payment terms, or the entity’s suppliers with early payment terms, compared to the related invoice payment due date. Supplier finance arrangements are often referred to as supply chain finance, payables finance or reverse factoring arrangements. Arrangements that are solely credit enhancements for the entity (for example, financial guarantees including letters of credit used as guarantees) or instruments used by the entity to settle directly with a supplier the amounts owed (for example, credit cards) are not supplier finance arrangements.

An entity shall disclose in aggregate for its supplier finance arrangements: 

(a) the terms and conditions of the arrangements (for example, extended payment terms and security or guarantees provided). However, an entity shall disclose separately the terms and conditions of arrangements that have dissimilar terms and conditions; 

(b) as at the beginning of and the end of the reporting period: 

(i) the carrying amounts, and associated line items presented in the entity’s statement of financial position, of the financial liabilities that are part of a supplier finance arrangement; 

(ii) the carrying amounts, and associated line items, of the financial liabilities disclosed under (i) for which suppliers have already received payment from the finance providers; and 

(iii) the range of payment due dates (for example, 30–40 days after the invoice date) for both the financial liabilities disclosed under (i) and comparable trade payables that are not part of a supplier finance arrangement. Comparable trade payables are, for example, trade payables of the entity within the same line of business or jurisdiction as the financial liabilities disclosed under (i). If ranges of payment due dates are wide, an entity shall disclose explanatory information about those ranges or disclose additional ranges (for example, stratified ranges); and 

(c) the type and effect of non-cash changes in the carrying amounts of the financial liabilities disclosed under (b)(i). Examples of non-cash changes include the effect of business combinations, exchange differences or other transactions that do not require the use of cash or cash equivalents (see paragraph 86).

In applying paragraphs 119A–119B, an entity is not required to disclose: 

(a) comparative information for any reporting periods presented before the beginning of the annual reporting period in which the entity first applies those requirements; and 

(b) the information otherwise required by paragraph 119B(b)(ii)–(iii) as at the beginning of the annual reporting period in which the entity first applies those requirements.

[11]

An entity shall disclose the following separately for each category of risk exposures that it decides to hedge and for which hedge accounting is applied:

(a) a description of the hedge;

(b) a description of the financial instruments designated as hedging instruments and their fair values at the reporting date; and

(c) the nature of the risks being hedged, including a description of the hedged item.

[Based on IFRS for SMEs Standard paragraph 12.27]

For fair value hedges, the entity shall disclose the following:

(a) the amount of the change in fair value of the hedging instrument recognised in profit or loss for the period; and

(b) the amount of the change in fair value of the hedged item recognised in profit or loss for the period.

[Based on IFRS for SMEs Standard paragraph 12.28]

For cash flow hedges and hedges of a net investment in a foreign operation, an entity shall disclose the following:

(a) the periods when the cash flows are expected to occur and when they are expected to affect profit or loss;

(b) a description of any forecast transaction for which hedge accounting had previously been used, but which is no longer expected to occur;

(c) the amount of the change in fair value of the hedging instrument that was recognised in other comprehensive income during the period;

(d) the amount that was reclassified to profit or loss for the period; and

(e) the amount of any excess of the cumulative change in fair value of the hedging instrument over the cumulative change in the fair value of the expected cash flows that was recognised in profit or loss for the period.

[Based on IFRS for SMEs Standard paragraph 12.29]

[12]

An entity shall disclose the following:

(a) material accounting policy information about the measurement of inventories, including the cost formula used;

(b) the total carrying amount of inventories and the carrying amount in classifications appropriate to the entity;

(c) the amount of inventories recognised as an expense during the period;

(d) impairment losses recognised or reversed in profit or loss in accordance with AASB 102 Inventories; and

(e) the total carrying amount of inventories pledged as security for liabilities.

[Based on IFRS for SMEs Standard paragraph 13.22]

Not-for-profit entities shall disclose the basis on which any loss of service potential of inventories held for distribution is assessed, or the bases when more than one basis is used, in addition to the information required by paragraph 123.

[13]

An entity shall disclose the following:

(a) material accounting policy information for investments in associates;

(b) the carrying amount of investments in associates (see paragraph 35(i)); and

(c) the fair value of investments in associates accounted for using the equity method for which there are published price quotations.

[Based on IFRS for SMEs Standard paragraph 14.12]

For investments in associates accounted for by the cost model, an investor shall disclose the amount of dividends and other distributions recognised as income. [IFRS for SMEs Standard paragraph 14.13]

For investments in associates accounted for by the equity method, an investor shall disclose separately its share of the profit or loss of such associates and its share of any discontinued operations of such associates. [IFRS for SMEs Standard paragraph 14.14]

For investments in associates accounted for in accordance with AASB 9, an investor shall make the disclosures required by paragraphs 113–115. [Based on IFRS for SMEs Standard paragraph 14.15]

[14]

An entity shall disclose the following:

(a) material accounting policy information for recognising its interests in joint ventures;

(b) the carrying amount of investments in joint ventures (see paragraph 35(j));

(c) the fair value of investments in joint ventures accounted for using the equity method for which there are published price quotations; and

(d) the aggregate amount of its commitments relating to joint ventures, including its share in the capital commitments that have been incurred jointly with other venturers, as well as its share of the capital commitments of the joint ventures themselves.

[Based on IFRS for SMEs Standard paragraph 15.19]

For joint ventures accounted for in accordance with the equity method, the venturer shall also make the disclosures required by paragraph 127 for equity method investments. [IFRS for SMEs Standard paragraph 15.20]

For joint ventures accounted for in accordance with AASB 9, the venturer shall make the disclosures required by paragraphs 113–115. [Based on IFRS for SMEs Standard paragraph 15.21]

[15]

An entity shall disclose the following for all investment property accounted for at fair value through profit or loss (paragraph 33 of AASB 140 Investment Property):

(a) the methods and significant assumptions applied in determining the fair value of investment property;

(b) the extent to which the fair value of investment property (as measured or disclosed in the financial statements) is based on a valuation by an independent valuer who holds a recognised and relevant professional qualification and has recent experience in the location and class of the investment property being valued. If there has been no such valuation, that fact shall be disclosed;

(c) the existence and amounts of restrictions on the realisability of investment property or the remittance of income and proceeds of disposal;

(d) contractual obligations to purchase, construct or develop investment property or for repairs, maintenance or enhancements; and

(e) a reconciliation between the carrying amounts of investment property at the beginning and end of the period, showing separately:

(i) additions, disclosing separately those additions resulting from acquisitions through business combinations;

(ii) net gains or losses from fair value adjustments;

(iii) transfers to and from investment property carried at cost less accumulated depreciation and impairment (see paragraph 57 of AASB 140);

(iv) transfers to and from inventories and owner-occupied property; and

(v) other changes. 

This reconciliation need not be presented for prior periods. [IFRS for SMEs Standard paragraph 16.10]

1n accordance with the section covering Leases, the owner of an investment property provides lessors’ disclosures about leases into which it has entered. A lessee that holds a right-of-use asset that is an investment property provides lessees’ disclosures as required by that section for any leases into which it has entered. [Based on IFRS for SMEs Standard paragraph 16.11]

[16]

An entity shall disclose the following for each class of property, plant and equipment determined in accordance with paragraph 44(a) and separately for investment property carried at cost less accumulated depreciation and impairment:

(a) the measurement bases used for determining the gross carrying amount;

(b) the depreciation methods used;

(c) the useful lives or the depreciation rates used;

(d) the gross carrying amount and the accumulated depreciation (aggregated with accumulated impairment losses) at the beginning and end of the reporting period; and

(e) a reconciliation of the carrying amount at the beginning and end of the reporting period, showing separately:

(i) additions;

(ii) assets classified as held for sale or included in a disposal group classified as held for sale in accordance with AASB 5 and other disposals;

(iii) acquisitions through business combinations;

(iv) increases or decreases resulting from revaluations under AASB 116 and from impairment losses recognised or reversed in other comprehensive income in accordance with AASB 136 Impairment of Assets;

(v) transfers to and from investment property carried at fair value through profit or loss (see paragraph 57 of AASB 140);

(vi) impairment losses recognised or reversed in profit or loss in accordance with AASB 136;

(vii) depreciation; and

(viii) other changes.

This reconciliation need not be presented for prior periods.

[Based on IFRS for SMEs Standard paragraph 17.31]

An entity shall also disclose the following:

(a) the existence and carrying amounts of property, plant and equipment to which the entity has restricted title or that is pledged as security for liabilities;

(b) the amount of contractual commitments for the acquisition of property, plant and equipment; and

(c) if an entity has investment property whose fair value cannot be measured reliably, it shall disclose that fact and the reasons why fair value cannot be measured reliably for those items of investment property.

[Based on IFRS for SMEs Standard paragraph 17.32]

If items of property, plant and equipment are stated at revalued amounts, an entity shall disclose the following:

(a) the effective date of the revaluation;

(b) whether an independent valuer was involved;

(c) the methods and significant assumptions applied in estimating the items’ fair values; and

(d) the revaluation surplus, indicating the change for the period and any restrictions on the distribution of the balance to shareholders.

[Based on IFRS for SMEs Standard paragraph 17.33]

[17]

An entity shall disclose the following for each class of intangible assets:

(a) the useful lives or the amortisation rates used;

(b) the amortisation methods used;

(c) the gross carrying amount and any accumulated amortisation (aggregated with accumulated impairment losses) at the beginning and end of the reporting period;

(d) the line item(s) in the statement of profit or loss and other comprehensive income (if presented), the statement of profit or loss and the statement of comprehensive income (if presented), or the combined statement of income and retained earnings (if presented) in which any amortisation of intangible assets is included; and

(e) a reconciliation of the carrying amount at the beginning and end of the reporting period, showing separately:

(i) additions;

(ii) assets classified as held for sale or included in a disposal group classified as held for sale in accordance with AASB 5 and other disposals;

(iii) acquisitions through business combinations;

(iv) increases or decreases resulting from revaluations under AASB 138 and from impairment losses recognised or reversed in other comprehensive income in accordance with AASB 136;

(v) amortisation;

(vi) impairment losses recognised or reversed in profit or loss in accordance with AASB 136; and

(vii) other changes.

This reconciliation need not be presented for prior periods.

[Based on IFRS for SMEs Standard paragraph 18.27]

An entity shall also disclose:

(a) a description, the carrying amount and remaining amortisation period of any individual intangible asset that is material to the entity’s financial statements;

(b) for intangible assets acquired by way of a government grant and initially recognised at fair value (see paragraph 44 of AASB 138):

(i) the fair value initially recognised for these assets; and

(ii) their carrying amounts;

(c) the existence and carrying amounts of intangible assets to which the entity has restricted title or that are pledged as security for liabilities; and

(d) the amount of contractual commitments for the acquisition of intangible assets.

[IFRS for SMEs Standard paragraph 18.28]

An entity shall disclose the aggregate amount of research and development expenditure recognised as an expense during the period. Research and development expenditure comprises all expenditure that is directly attributable to research or development activities. (See paragraphs 66 and 67 of AASB 138 for guidance on the type of expenditure to be included for the purpose of the disclosure requirement in paragraph 139.) [Based on IFRS for SMEs Standard paragraph 18.29]

If items of intangible assets are stated at revalued amounts, an entity shall disclose the following:

(a) the effective date of the revaluation;

(b) whether an independent valuer was involved;

(c) the methods and significant assumptions applied in estimating the items’ fair values; and

(d) the revaluation surplus, indicating the change for the period and any restrictions on the distribution of the balance to shareholders.

An entity shall also disclose for an intangible asset assessed as having an indefinite useful life, the carrying amount of that asset and the reasons supporting the assessment of an indefinite useful life. In giving these reasons, the entity shall describe the factor(s) that played a significant role in determining that the asset has an indefinite useful life.

[18]

For each business combination during the period, the acquirer shall disclose the following:

(a) the names and descriptions of the combining entities or businesses;

(b) the acquisition date;

(c) the percentage of voting equity instruments acquired;

(d) the cost of the combination and a description of the components of that cost (such as cash, equity instruments and debt instruments);

(e) the amounts recognised at the acquisition date for each class of the acquiree’s assets, liabilities and contingent liabilities, including goodwill;

(f) the amount of any excess recognised in profit or loss in accordance with paragraph 34 of AASB 3 Business Combinations and the line item in the statement of comprehensive income (and in the statement of profit or loss, if presented) in which the excess is recognised;

(g) a qualitative description of the factors that make up the goodwill recognised, such as expected synergies from combining operations of the acquiree and the acquirer, or intangible assets or other items not recognised in accordance with paragraphs 10–14 of AASB 3; and

(h) for each business combination in which the acquirer holds less than 100 per cent of the equity interests in the acquiree at the acquisition date, the acquirer shall disclose the amount of the non-controlling interest in the acquiree recognised at the acquisition date and the measurement basis for that amount.

[Based on IFRS for SMEs Standard paragraph 19.25]

An acquirer shall disclose a reconciliation of the carrying amount of goodwill at the beginning and end of the reporting period, showing separately:

(a) changes arising from new business combinations;

(b) impairment losses;

(c) disposals of previously acquired businesses; and

(d) other changes.

This reconciliation need not be presented for prior periods. [Based on IFRS for SMEs Standard paragraph 19.26]

[19]

A lessee shall make the following disclosures for leases:

(a) for each class of underlying asset, the net carrying amount of the right-of-use asset at the end of the reporting period;

(b) the total of future lease payments at the end of the reporting period, for each of the following periods:

(i) not later than one year;

(ii) later than one year and not later than five years; and

(iii) later than five years; and

(c) a general description of the lessee’s significant leasing arrangements including, for example, information about variable lease payments, extension and termination options, residual value guarantees, subleases and restrictions imposed by lease arrangements.

[Based on IFRS for SMEs Standard paragraph 20.13]

In addition, the requirements for disclosure about assets in accordance with paragraphs 134(e)(i) and (vii) and 136 apply to lessees for the right-of-use assets. [Based on IFRS for SMEs Standard paragraph 20.14]

A lessee shall make the following disclosures for short-term leases and leases of low-value assets that are not recognised as right-of-use assets under the exemption in paragraph 6 of AASB 16 Leases:

(a) the amount of its lease commitments for short-term leases if the portfolio of short-term leases to which it is committed at the end of the reporting period is dissimilar to the portfolio of short-term leases to which the short-term lease expense disclosed applying paragraph (b) below relates; and

(b) lease payments recognised as an expense.

[Based on IFRS for SMEs Standard paragraph 20.16]

If a lessee applies the practical expedient in paragraph 46A of AASB 16, the lessee shall disclose:

(a) that it has applied the practical expedient to all rent concessions that meet the conditions in AASB 16 paragraph 46B or, if not applied to all such rent concessions, information about the nature of the contracts to which it has applied the practical expedient (see AASB 16 paragraph 2); and

(b) the amount recognised in profit or loss for the reporting period to reflect changes in lease payments that arise from rent concessions to which the lessee has applied the practical expedient in AASB 16 paragraph 46A.

In the reporting period in which a lessee first applies the practical expedient in AASB 16 paragraph 46A, the lessee is not required to disclose the information that would otherwise be required by paragraph 106(b) in respect of the accounting policy changes made in applying the practical expedient.

A lessor shall make the following disclosures for finance leases:

(a) a reconciliation between the gross investment in the lease at the end of the reporting period and the present value of lease payments receivable at the end of the reporting period. In addition, a lessor shall disclose the gross investment in the lease and the present value of lease payments receivable at the end of the reporting period, for each of the following periods:

(i) not later than one year;

(ii) later than one year and not later than five years; and

(iii) later than five years;

(b) unearned finance income;

(c) the unguaranteed residual values accruing to the benefit of the lessor;

(d) the loss allowance for uncollectable lease payments receivable;

(e) income relating to variable lease payments not included in the measurement of the net investment in the lease; and

(f) a general description of the lessor’s significant leasing arrangements, including, for example, information about variable lease payments, renewal or purchase options and escalation clauses, subleases, and restrictions imposed by lease arrangements.

[Based on IFRS for SMEs Standard paragraph 20.23]

A lessor shall disclose the following for operating leases:

(a) the future lease payments under non-cancellable operating leases for each of the following periods:

(i) not later than one year;

(ii) later than one year and not later than five years; and

(iii) later than five years;

(b) total variable lease payments that do not depend on an index, or a rate, recognised as income; and

(c) a general description of the lessor’s significant leasing arrangements, including, for example, information about variable lease payments, renewal or purchase options and escalation clauses and restrictions imposed by lease arrangements.

[Based on IFRS for SMEs Standard paragraph 20.30]

In addition, the requirements for disclosure about assets in accordance with the sections covering of Property, Plant and Equipment and Investment Property at Cost, Intangible Assets other than Goodwill, and Impairment of Assets apply to lessors for assets provided under operating leases. [IFRS for SMEs Standard paragraph 20.31]

Disclosure requirements for lessees and lessors apply equally to sale and leaseback transactions. The required description of significant leasing arrangements includes description of unique or unusual provisions of the agreement or terms of the sale and leaseback transactions. [IFRS for SMEs Standard paragraph 20.35]

In addition to the disclosures required in paragraphs 144–146, where a lessee is a not-for-profit entity and elects to measure a class or classes of right-of-use assets at initial recognition at cost in accordance with paragraphs 23–25 of AASB 16 for leases that have significantly below-market terms and conditions principally to enable the entity to further its objectives, the lessee shall disclose information that helps users of financial statements to assess:

(a) the entity’s dependence on leases that have significantly below-market terms and conditions principally to enable the entity to further its objectives; and

(b) the nature and terms of the leases, including:

(i) the lease payments;

(ii) the lease term;

(iii) a description of the underlying assets; and

(iv) restrictions on the use of the underlying assets specific to the entity.

The disclosures provided by a not for profit entity in accordance with paragraph 151 shall be provided individually for each material lease that has significantly below-market terms and conditions principally to enable the entity to further its objectives or in aggregate for leases involving right-of-use assets of a similar nature. An entity shall consider the level of detail necessary to satisfy the disclosure objective and how much emphasis to place on each of the various requirements. An entity shall aggregate or disaggregate disclosures so that useful information is not obscured by either the inclusion of a large amount of insignificant detail or the aggregation of items that have substantially different characteristics.

[20]

For each class of provision, an entity shall disclose all of the following:

(a) a reconciliation showing:

(i) the carrying amount at the beginning and end of the period;

(ii) additions during the period, including adjustments that result from changes in measuring the discounted amount;

(iii) amounts charged against the provision during the period; and

(iv) unused amounts reversed during the period;

(b) a brief description of the nature of the obligation and the expected amount and timing of any resulting payments;

(c) an indication of the uncertainties about the amount or timing of those outflows; and

(d) the amount of any expected reimbursement, stating the amount of any asset that has been recognised for that expected reimbursement.

Comparative information for prior periods is not required. [IFRS for SMEs Standard paragraph 21.14]

Unless the possibility of any outflow of resources in settlement is remote, an entity shall disclose, for each class of contingent liability at the reporting date, a brief description of the nature of the contingent liability and, when practicable:

(a) an estimate of its financial effect, measured in accordance with paragraphs 36–52 of AASB 137 Provisions, Contingent Liabilities and Contingent Assets;

(b) an indication of the uncertainties relating to the amount or timing of any outflow; and

(c) the possibility of any reimbursement.

If it is impracticable to make one or more of these disclosures, that fact shall be stated. [IFRS for SMEs Standard paragraph 21.15]

If an inflow of economic benefits is probable (more likely than not) but not virtually certain, an entity shall disclose a description of the nature of the contingent assets at the end of the reporting period and, where practicable, an estimate of their financial effect, measured using the principles set out in paragraphs 36–52 of AASB 137. Where any of the information required by this paragraph is not disclosed because it is not practicable to do so, that fact shall be stated. [Based on IFRS for SMEs Standard paragraph 21.16]

In extremely rare cases, disclosure of some or all of the information required by paragraphs 153–155 can be expected to prejudice seriously the position of the entity in a dispute with other parties on the subject matter of the provision, contingent liability or contingent asset. In such cases, an entity need not disclose the information, but shall disclose the general nature of the dispute, together with the fact that, and reason why, the information has not been disclosed. [IFRS for SMEs Standard paragraph 21.17]

[21]

An entity shall disclose:

(a) information about its performance obligations in contracts with customers, including a description of when the entity typically satisfies its performance obligations, the significant payment terms, the nature of the goods or services that the entity has promised to transfer, obligations for returns, refunds and other similar obligations and types of warranties and related obligations; and

(b) the amount of each category of revenue recognised during the period, disaggregated into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. An entity applies the guidance in AASB 15 Revenue from Contracts with Customers paragraphs B87–B89 when selecting the categories to use to disaggregate revenue.

[Based on IFRS for SMEs Standard paragraph 23.30]

For performance obligations that an entity satisfies over time, an entity shall disclose the methods used to recognise revenue (for example, a description of the output methods or input methods used and how those methods are applied). [Based on IFRS for SMEs Standard paragraph 23.31]

An entity shall disclose the closing balances of contract assets and contract liabilities from contracts with customers, if not otherwise separately presented or disclosed. [Based on IFRS for SMEs Standard paragraph 23.32]

[22]

A for-profit entity shall disclose the following:

(a) the nature and amounts of government grants recognised in the financial statements;

(b) unfulfilled conditions and other contingencies attaching to government grants that have been recognised in income;

(c) an indication of other forms of government assistance as defined in AASB 120 Accounting for Government Grants and Disclosure of Government Assistance from which the entity has directly benefited; and

(d) material accounting policy information for government grants, including the methods of presentation adopted in the financial statements.

[Based on IFRS for SMEs Standard paragraph 24.6]

[23]

Paragraph 52(b) requires disclosure of finance costs. Paragraph 119(b) requires disclosure of total interest expense (using the effective interest method) for financial liabilities that are not measured at fair value through profit or loss. [IFRS for SMEs Standard paragraph 25.3]

An entity shall disclose the amount of borrowing costs capitalised during the period.

 A not-for-profit public sector entity shall disclose material accounting policy information for borrowing costs.

[24]

An entity shall disclose the following information about the nature and extent of share-based payment arrangements that existed during the period:

(a) a description of each type of share-based payment arrangement that existed at any time during the period, including the general terms and conditions of each arrangement, such as vesting requirements, the maximum term of options granted, and the method of settlement (for example, whether in cash or equity). An entity with substantially similar types of share-based payment arrangements may aggregate this information; and

(b) the number and weighted average exercise prices of share options for each of the following groups of options:

(i) outstanding at the beginning of the period;

(ii) granted during the period;

(iii) forfeited during the period;

(iv) exercised during the period;

(v) expired during the period;

(vi) outstanding at the end of the period; and

(vii) exercisable at the end of the period.

[IFRS for SMEs Standard paragraph 26.18]

For equity-settled share-based payment arrangements, an entity shall disclose information about how it measured the fair value of goods or services received or the value of the equity instruments granted. If a valuation methodology was used, the entity shall disclose the method and its reason for choosing it. [IFRS for SMEs Standard paragraph 26.19]

For cash-settled share-based payment arrangements, an entity shall disclose information about how the liability was measured. [IFRS for SMEs Standard paragraph 26.20]

For share-based payment arrangements that were modified during the period, an entity shall disclose an explanation of those modifications. [IFRS for SMEs Standard paragraph 26.21]

An entity shall disclose the following information about the effect of share-based payment transactions on the entity’s profit or loss for the period and on its financial position:

(a) the total expense recognised in profit or loss for the period; and

(b) the total carrying amount at the end of the period for liabilities arising from share-based payment transactions.

[IFRS for SMEs Standard paragraph 26.23]

[25]

An entity shall disclose the following for each class of assets indicated in paragraph 170:

(a) the amount of impairment losses recognised in profit or loss during the period and the line item(s) in the statement of comprehensive income (and in the statement of profit or loss, if presented) in which those impairment losses are included; and

(b) the amount of reversals of impairment losses recognised in profit or loss during the period and the line item(s) in the statement of comprehensive income (and in the statement of profit or loss, if presented) in which those impairment losses are reversed.

[IFRS for SMEs Standard paragraph 27.32]

An entity shall disclose the information required by paragraph 169 for each of the following classes of asset:

(a) property, plant and equipment;

(b) investment property accounted for by the cost method;

(c) goodwill;

(d) intangible assets other than goodwill;

(e) investments in associates; and

(f) investments in joint ventures.

[Based on IFRS for SMEs Standard paragraph 27.33]

[26]

This section does not require specific disclosures about short-term employee benefits. [IFRS for SMEs Standard paragraph 28.39]

An entity shall disclose the amount recognised in profit or loss as an expense for defined contribution plans. If an entity treats a defined benefit multi-employer plan as a defined contribution plan because sufficient information is not available to use defined benefit accounting (see paragraph 34 of AASB 119), it shall disclose the fact that it is a defined benefit plan and the reason why it is being accounted for as a defined contribution plan, along with any available information about the plan’s surplus or deficit and the implications, if any, for the entity. [IFRS for SMEs Standard paragraph 28.40]

An entity shall disclose the following information about defined benefit plans (except for any defined multi-employer benefit plans that are accounted for as a defined contribution plans in accordance with paragraph 34 of AASB 119, for which the disclosures in paragraph 172 apply instead). If an entity has more than one defined benefit plan, these disclosures may be made in total, separately for each plan, or in such groupings as are considered to be the most useful:

(a) a general description of the type of plan, including funding policy;

(b) a reconciliation of opening and closing balances of the defined benefit obligation showing separately benefits paid and all other changes;

(c) a reconciliation of the opening and closing balances of the fair value of plan assets and of the opening and closing balances of any reimbursement right recognised as an asset, showing separately, if applicable:

(i) contributions;

(ii) benefits paid; and

(iii) other changes in plan assets;

(d) the total cost relating to defined benefit plans for the period;

(e) for each major class of plan assets, which shall include, but is not limited to, equity instruments, debt instruments, property, and all other assets, the percentage or amount that each major class constitutes of the fair value of the total plan assets at the reporting date;

(f) the amounts included in the fair value of plan assets for:

(i) each class of the entity’s own financial instruments; and

(ii) any property occupied by, or other assets used by, the entity.

(g) the actual return on plan assets; and

(h) the principal actuarial assumptions used, including, when applicable:

(i) the discount rates;

(ii) the expected rates of return on any plan assets for the periods presented in the financial statements;

(iii) the expected rates of salary increases;

(iv) medical cost trend rates; and

(v) any other material actuarial assumptions used.

The reconciliations in (b) and (c) need not be presented for prior periods. A subsidiary that recognises and measures employee benefit expense on the basis of a contractual agreement or stated policy for charging the net defined benefit cost or based on their contributions payable for the period (see paragraph 41 of AASB 119), shall, in its separate financial statements, describe the contractual agreement or stated policy for charging the net defined benefit cost or the fact that there is no such policy, and the policy for determining the contributions to be paid by the entity and shall make the disclosures in (a)–(h) for the plan as a whole. The subsidiary can disclose this information by cross-reference to disclosures in another group entity’s financial statements if:

(i) that group entity’s financial statements separately identify and disclose the information required about the plan; and

(j) that group entity’s financial statements are available to users of the financial statements on the same terms as the financial statements of the entity and at the same time as, or earlier than, the financial statements of the entity.

[Based on IFRS for SMEs Standard paragraph 28.41]

For each category of termination benefits that an entity provides to its employees, the entity shall disclose the nature of the benefit, the amount of its obligation and the extent of funding at the reporting date. [IFRS for SMEs Standard paragraph 28.43]

When there is uncertainty about the number of employees who will accept an offer of termination benefits, a contingent liability exists. The section covering Provisions and Contingencies requires an entity to disclose information about its contingent liabilities unless the possibility of an outflow in settlement is remote. [IFRS for SMEs Standard paragraph 28.44]

[27]

An entity shall disclose information that enables users of its financial statements to evaluate the nature and financial effect of the current and deferred tax consequences of recognised transactions and other events (including enactment or substantive enactment of tax rates and tax laws, such as Pillar Two legislation).^[27A] [Based on IFRS for SMEs Standard paragraph 29.38]

An entity shall disclose separately the major components of tax expense (income). Such components of tax expense (income) may include:

(a) current tax expense (income);

(b) any adjustments recognised in the period for current tax of prior periods;

(c) the amount of deferred tax expense (income) relating to the origination and reversal of temporary differences;

(d) the amount of deferred tax expense (income) relating to changes in tax rates or the imposition of new taxes;

(e) the amount of the benefit arising from a previously unrecognised tax loss, tax credit or temporary difference of a prior period that is used to reduce tax expense;

(f) adjustments to deferred tax expense (income) arising from a change in the tax status of the entity or its shareholders;

(g) deferred tax expense (income) arising from the write-down, or reversal of a previous write-down, of a deferred tax asset in accordance with paragraph 56 of AASB 112 Income Taxes; and

(h) the amount of tax expense (income) relating to those changes in accounting policies and errors that are included in profit or loss in accordance with AASB 108, because they cannot be accounted for retrospectively.

[IFRS for SMEs Standard paragraph 29.39]

An entity shall disclose the following separately:

(a) the aggregate current and deferred tax relating to items that are recognised as items of other comprehensive income;

(b) the aggregate current and deferred tax relating to items that are charged or credited directly to equity;

(c) an explanation of the relationship between tax expense (income) and accounting profit in either or both of the following forms:

(i) a numerical reconciliation between tax expense (income) and product of accounting profit multiplied by the applicable tax rate(s), disclosing also the basis on which the applicable tax rate(s) is (are computed); or

(ii) a numerical reconciliation between the average effective tax rate and the applicable tax rate, disclosing also the basis on which the applicable tax rate is computed;

(d) an explanation of changes in the applicable tax rate(s) compared with the previous reporting period;

(e) for each type of temporary difference and for each type of unused tax losses and tax credits:

(i) the amount of deferred tax liabilities and deferred tax assets at the end of the reporting period; and

(ii) an analysis of the change in deferred tax liabilities and deferred tax assets during the period;

(f) the amount (and expiry date, if any) of deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax asset is recognised in the statement of financial position; and

(g) in the circumstances described in paragraph 52A of AASB 112, an explanation of the nature of the potential income tax consequences that would result from the payment of dividends to its shareholders.

[Based on IFRS for SMEs Standard paragraph 29.40]

An entity shall disclose that it has applied the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes (see AASB 112 paragraph 4A).

An entity shall disclose separately its current tax expense (income) related to Pillar Two income taxes.

[28]

In paragraphs 181 and 182, references to ‘functional currency’ are, in the case of a group, to the functional currency of the parent. [IFRS for SMEs Standard paragraph 30.24]

An entity shall disclose the following:

(a) the amount of exchange differences recognised in profit or loss during the period, except for those arising on financial instruments measured at fair value through profit or loss in accordance with AASB 9; and

(b) the amount of exchange differences arising during the period and classified in a separate component of equity at the end of the period.

[IFRS for SMEs Standard paragraph 30.25]

An entity shall disclose the currency in which the financial statements are presented. When the presentation currency is different from the functional currency, an entity shall state that fact and shall disclose the functional currency and the reason for using a different presentation currency. [IFRS for SMEs Standard paragraph 30.26]

When there is a change in the functional currency of either the reporting entity or a significant foreign operation, the entity shall disclose that fact and the reason for the change in functional currency. [IFRS for SMEs Standard paragraph 30.27]

[29]

An entity to which AASB 129 Financial Reporting in Hyperinflationary Economies applies shall disclose the following:

(a) the fact that financial statements and other prior period data have been restated for changes in the general purchasing power of the functional currency;

(b) the identity and level of the price index at the reporting date and changes during the current reporting period and the previous reporting period; and

(c) the amount of gain or loss on monetary items.

[IFRS for SMEs Standard paragraph 31.15]

An entity that applies AASB 129 shall also disclose whether the financial statements are based on a historical cost approach or a current cost approach.

[30]

An entity shall adjust the amounts recognised in its financial statements, including related disclosures, to reflect adjusting events after the end of the reporting period. [IFRS for SMEs Standard paragraph 32.4]

An entity shall disclose the date when the financial statements were authorised for issue and who gave that authorisation. If the entity’s owners or others have the power to amend the financial statements after issue, the entity shall disclose that fact. [IFRS for SMEs Standard paragraph 32.9]

An entity shall disclose the following for each category of non-adjusting event after the end of the reporting period:

(a) the nature of the event; and

(b) an estimate of its financial effect or a statement that such an estimate cannot be made.

[IFRS for SMEs Standard paragraph 32.10]

The following are examples of non-adjusting events after the end of the reporting period that would generally result in disclosure; the disclosures will reflect information that becomes known after the end of the reporting period but before the financial statements are authorised for issue:

(a) a major business combination or disposal of a major subsidiary;

(b) announcement of a plan to discontinue an operation;

(c) major purchases of assets, classifications of assets as held for sale in accordance with AASB 5, other disposals of assets, or expropriation of major assets by government;

(d) the destruction of a major production plant by a fire;

(e) announcement, or commencement of the implementation, of a major restructuring;

(f) issues or repurchases of an entity’s debt or equity instruments;

(g) abnormally large changes in asset prices or foreign exchange rates;

(h) changes in tax rates or tax laws enacted or announced that have a significant effect on current and deferred tax assets and liabilities;

(i) entering into significant commitments or contingent liabilities, for example, by issuing significant guarantees; and

(j) commencement of major litigation arising solely out of events that occurred after the end of the reporting period.

[Based on IFRS for SMEs Standard paragraph 32.11]

[31]

This section requires an entity to include in its financial statements the disclosures necessary to draw attention to the possibility that its financial position and profit or loss have been affected by the existence of related parties and by transactions and outstanding balances with such parties. [IFRS for SMEs Standard paragraph 33.1]

In considering each possible related party relationship, an entity shall assess the substance of the relationship and not merely the legal form. [IFRS for SMEs Standard paragraph 33.3]

In the context of this Standard, the following are not necessarily related parties:

(a) two entities simply because they have a director or other member of key management personnel in common;

(b) two venturers simply because they share joint control over a joint venture;

(c) any of the following simply by virtue of their normal dealings with an entity (even though they may affect the freedom of action of an entity or participate in its decision-making process):

(i) providers of finance;

(ii) trade unions;

(iii) public utilities; or

(iv) government departments and agencies; and

(d) a customer, supplier, franchisor, distributor or general agent with whom an entity transacts a significant volume of business, merely by virtue of the resulting economic dependence.

[IFRS for SMEs Standard paragraph 33.4]

Relationships between a parent and its subsidiaries shall be disclosed irrespective of whether there have been related party transactions. An entity shall disclose the name of its parent and, if different, the ultimate controlling party. If neither the entity’s parent nor the ultimate controlling party produces financial statements available for public use, the name of the next most senior parent that does so (if any) shall also be disclosed. [IFRS for SMEs Standard paragraph 33.5]

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity. Compensation includes all employee benefits (as defined in AASB 119) including those in the form of share-based payment (see AASB 2 Share-based Payment). Employee benefits include all forms of consideration paid, payable or provided by the entity, or on behalf of the entity (for example, by its parent or by a shareholder), in exchange for services rendered to the entity. It also includes such consideration paid on behalf of a parent of the entity in respect of goods or services provided to the entity. [IFRS for SMEs Standard paragraph 33.6]

An entity shall disclose key management personnel compensation in total. [IFRS for SMEs Standard paragraph 33.7]

If an entity obtains key management personnel services from another entity (the ‘management entity’), the entity is not required to apply the requirements in paragraph 194 to the compensation paid or payable by the management entity to the management entity’s employees or directors.

Amounts incurred by the entity for the provision of key management personnel services that are provided by a separate management entity shall be disclosed.

A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged. Examples of related party transactions that are common to entities within the scope of this Standard include, but are not limited to:

(a) transactions between an entity and its principal owner(s);

(b) transactions between an entity and another entity when both entities are under the common control of a single entity or person; and

(c) transactions in which an entity or person that controls the reporting entity incurs expenses directly that otherwise would have been borne by the reporting entity.

[IFRS for SMEs Standard paragraph 33.8]

If an entity has related party transactions, it shall disclose the nature of the related party relationship as well as information about the transactions, outstanding balances and commitments necessary for an understanding of the potential effect of the relationship on the financial statements. Those disclosure requirements are in addition to the requirements in paragraph 194 to disclose key management personnel compensation. At a minimum, disclosures shall include:

(a) the amount of the transactions;

(b) the amount of outstanding balances and:

(i) their terms and conditions, including whether they are secured and the nature of the consideration to be provided in settlement; and

(ii) details of any guarantees given or received;

(c) provisions for uncollectable receivables related to the amount of outstanding balances; and

(d) the expense recognised during the period in respect of bad or doubtful debts due from related parties.

Such transactions could include purchases, sales or transfers of goods or services; leases; guarantees; and settlements by the entity on behalf of the related party or vice versa. [IFRS for SMEs Standard paragraph 33.9]

An entity shall make the disclosures required by paragraph 198 separately for each of the following categories:

(a) entities with control, joint control or significant influence over the entity;

(b) entities over which the entity has control, joint control or significant influence;

(c) key management personnel of the entity or its parent (in the aggregate); and

(d) other related parties.

[IFRS for SMEs Standard paragraph 33.10]

An entity is exempt from the disclosure requirements of paragraph 198 in relation to:

(a) a state (a national, regional or local government) that has control, joint control or significant influence over the reporting entity; and

(b) another entity that is a related party because the same state has control, joint control or significant influence over both the reporting entity and the other entity.

However, the entity must still disclose a parent-subsidiary relationship as required by paragraph 192. [IFRS for SMEs Standard paragraph 33.11]

The following are examples of transactions that shall be disclosed if they are with a related party:

(a) purchases or sales of goods (finished or unfinished);

(b) purchases or sales of property and other assets;

(c) rendering or receiving of services;

(d) leases;

(e) transfers of research and development;

(f) transfers under licence agreements;

(g) transfers under finance arrangements (including loans and equity contributions in cash or in kind);

(h) provision of guarantees or collateral;

(i) settlement of liabilities on behalf of the entity or by the entity on behalf of another party;

(j) participation by a parent or subsidiary in a defined benefit plan that shares risks between group entities; and

(k) commitments to do something if a particular event occurs, or does not occur in the future, including executory contracts^[32] (recognised or unrecognised).

[Based on IFRS for SMEs Standard paragraph 33.12]

An entity shall not state that related party transactions were made on terms equivalent to those that prevail in arm’s length transactions unless such terms can be substantiated. [IFRS for SMEs Standard paragraph 33.13]

An entity may disclose items of a similar nature in the aggregate except when separate disclosure is necessary for an understanding of the effects of related party transactions on the financial statements of the entity. [IFRS for SMEs Standard paragraph 33.14]

[33]

An entity shall disclose the following with respect to its biological assets measured at fair value:

(a) a description of each class of its biological assets.

(b) the methods and significant assumptions applied in determining the fair value of each category of agricultural produce at the point of harvest and each category of biological assets.

(c) a reconciliation of changes in the carrying amount of biological assets between the beginning and the end of the current period. The reconciliation shall include:

(i) the gain or loss arising from changes in fair value less costs to sell;

(ii) increases resulting from purchases;

(iii) decreases resulting from harvest;

(iv) increases resulting from business combinations;

(v) net exchange differences arising on the translation of financial statements into a different presentation currency and on the translation of a foreign operation into the presentation currency of the reporting entity; and

(vi) other changes.

This reconciliation need not be presented for prior periods.

[IFRS for SMEs Standard paragraph 34.7]

An entity shall disclose the following with respect to its biological assets measured using the cost model:

(a) a description of each class of its biological assets;

(b) an explanation of why fair value cannot be measured reliably;

(c) the depreciation method used;

(d) the useful lives or the depreciation rates used; and

(e) the gross carrying amount and the accumulated depreciation (aggregated with accumulated impairment losses) at the beginning and end of the period.

[Based on IFRS for SMEs Standard paragraph 34.10]

[34]

The following disclosures are provided where an entity applies the requirements of AASB 1 First-time Adoption of Australian Accounting Standards. If an entity applies the requirements of AASB 108 on first-time adoption, it shall provide the disclosures required by the section of Accounting Policies, Estimates and Errors. AASB 1053 Application of Tiers of Australian Accounting Standards sets out the requirements for which Standard may be applied upon first-time adoption.

If an entity is resuming the application of Tier 2 reporting requirements in accordance with AASB 1053 paragraph 19B(e), it shall provide the disclosures required by paragraphs 209(a) and (b), but need not provide the other disclosures set out in this section.

An entity shall explain how the transition from its previous financial reporting framework to Australian Accounting Standards – Simplified Disclosures affected its reported financial position, financial performance and cash flows. [IFRS for SMEs Standard paragraph 35.12]

An entity that has applied Australian Accounting Standards or IFRSs in a previous period, as described in paragraph 4A of AASB 1, shall disclose:

(a) the reason it stopped applying Australian Accounting Standards or IFRSs;

(b) the reason it is resuming the application of Australian Accounting Standards or IFRSs; and

(c) whether it has applied AASB 1 or has applied Australian Accounting Standards – Simplified Disclosures retrospectively in accordance with AASB 108.

[Based on IFRS for SMEs Standard paragraph 35.12A]

An entity’s first financial statements prepared using Australian Accounting Standards – Simplified Disclosures shall include:

(a) a description of the nature of each change in accounting policy;

(b) reconciliations of its equity determined in accordance with its previous financial reporting framework to its equity determined in accordance with Australian Accounting Standards – Simplified Disclosures for both of the following dates:

(i) the date of transition to Australian Accounting Standards – Simplified Disclosures; and

(ii) the end of the latest period presented in the entity’s most recent annual financial statements determined in accordance with its previous financial reporting framework; and

(c) a reconciliation of the profit or loss determined in accordance with its previous financial reporting framework for the latest period in the entity’s most recent annual financial statements to its profit or loss determined in accordance with Australian Accounting Standards – Simplified Disclosures for the same period.

[IFRS for SMEs Standard paragraph 35.13]

If an entity becomes aware of errors made under its previous financial reporting framework, the reconciliations required by paragraph 210(b) and (c) shall, to the extent practicable, distinguish the correction of those errors from changes in accounting policies. [IFRS for SMEs Standard paragraph 35.14]

If an entity did not present financial statements for previous periods, it shall disclose that fact in its first financial statements that conform to Australian Accounting Standards – Simplified Disclosures. [IFRS for SMEs Standard paragraph 35.15]

In rare circumstances, a not-for-profit public sector entity may experience extreme difficulties in complying with the requirements of certain Australian Accounting Standards due to information deficiencies that have caused the entity to state non-compliance with previous GAAP. In these cases, the conditions specified in paragraph 3 of AASB 1 for the application of AASB 1 are taken to be satisfied provided the entity:

(a) discloses in its first Australian-Accounting-Standards-Simplified-Disclosures financial statements:

(i) an explanation of information deficiencies and its strategy for rectifying those deficiencies; and

(ii) the Australian Accounting Standards that have not been complied with; and

(b) makes an explicit and unreserved statement of compliance with other Australian Accounting Standards for which there are no information deficiencies.

The following table identifies which paragraphs in this Standard are applicable only to not-for-profit private sector entities and public sector entities.

[38]

A government department shall disclose liabilities that were assumed during the reporting period by the government or other entity.

[39]

When activities are transferred as a consequence of a restructure of administrative arrangements, a government controlled not-for-profit transferee entity shall disclose the expenses and income attributable to the transferred activities for the reporting period, showing separately those expenses and items of income recognised by the transferor during the reporting period. If disclosure of this information would be impracticable, that fact shall be disclosed, together with an explanation of why this is the case.

For each material transfer, the assets and liabilities transferred as a consequence of a restructure of administrative arrangements during the reporting period shall be disclosed by class, and the counterparty transferor/transferee entity shall be identified. With respect to transfers that are individually immaterial, the assets and liabilities transferred shall be disclosed on an aggregate basis.

The disclosures required by paragraph 217 will assist users to identify the assets and liabilities recognised or derecognised as a result of a restructure of administrative arrangements separately from other assets and liabilities and to identify the transferor/transferee entity.

[40]

A government department shall disclose the following in its complete set of financial statements in relation to activities administered by the government department:

(a) administered income, showing separately each major class of income;

(b) administered expenses, showing separately each major class of expense;

(c) administered assets, showing separately each major class of asset; and

(d) administered liabilities, showing separately each major class of liability.

Details of the broad categories of recipients and the amounts transferred to those recipients shall be disclosed in the government department’s complete set of financial statements.

[41]

An entity which applies AASB 1051 Land Under Roads shall disclose material accounting policy information for land under roads acquired before the end of the first reporting period ending on or after 31 December 2007, in each reporting period to which AASB 1051 is applied.

[42]

Where an entity applies AASB 1055 Budgetary Reporting and its budgeted:

(a) statement of financial position;

(b) statement of profit or loss and other comprehensive income;

(c) statement of changes in equity; or

(d) statement of cash flows;

reflecting controlled items is presented to parliament and is separately identified as relating to that entity, the entity shall disclose for the reporting period:

(e) that original budgeted financial statement presented to parliament, presented and classified on a basis that is consistent with the presentation and classification adopted in the corresponding financial statement prepared in accordance with Australian Accounting Standards; and

(f) explanations of major variances between the actual amounts presented in the financial statements and the corresponding original budget amounts.

Where an entity within the General Government Sector (GGS)’s budgeted financial information reflecting major classes of administered income and expenses, or major classes of administered assets and liabilities, is presented to parliament and is separately identified as relating to that entity, the entity shall disclose for the reporting period:

(a) that original budgeted financial information presented to parliament, presented and classified on a basis that is consistent with the presentation and classification adopted for the corresponding information about administered items disclosed in accordance with AASB 1050 Administered Items; and

(b) explanations of major variances between the actual amounts disclosed in the financial statements in accordance with AASB 1050 and the corresponding original budget amounts.

Comparative budgetary information in respect of the previous period need not be disclosed.

When disclosing budgetary information under paragraphs 222–224, an entity shall comply with the requirements in AASB 1055 Budgetary Reporting.

[43]

The objective of the disclosure requirements is for an entity to disclose sufficient information to enable users of financial statements to understand the effects of volunteer services and other transactions where an entity acquires an asset for consideration that is significantly less than fair value principally to enable the entity to further its objectives on the financial position, financial performance and cash flows of the entity. Paragraphs 227–241 specify requirements relating to this objective.

An entity shall consider the level of detail necessary to satisfy the disclosure objective and how much emphasis to place on each of the various requirements. An entity shall aggregate or disaggregate disclosures so that useful information is not obscured by either the inclusion of a large amount of insignificant detail or the aggregation of items that have substantially different characteristics.

An entity need not disclose information in accordance with paragraphs 226–241 if it has provided the information in accordance with other sections in this Standard.

An entity shall disclose income recognised during the period, disaggregated into categories that reflect how the nature and amount of income (and the resultant cash flows) are affected by economic factors. An entity considers disclosing separately the following categories of income:

(a) grants, bequests and donations of cash, other financial assets and goods;

(b) recognised volunteer services; and

(c) for government departments and other public sector entities, appropriation amounts recognised as income, by class of appropriation.

An entity shall disclose income arising from statutory requirements (such as taxes, rates and fines) recognised during the period, disaggregated into categories that reflect how the nature and amount of income (and the resultant cash flows) are affected by economic factors.

To meet the objective in paragraph 226, an entity shall consider disclosing information about assets and liabilities recognised at the reporting date in accordance with AASB 1058 Income of Not-for-Profit Entities, including the amounts of:

(a) receivables that are not a financial asset as defined in AASB 132 (eg income tax receivable from a taxpayer), and:

(i) interest income recognised in relation to such receivables during the period; and

(ii) impairment losses recognised in relation to such receivables during the period; and

(b) financial liabilities relating to prepaid taxes or rates for which the taxable event has yet to occur, and the future period(s) to which those taxes or rates relate.

Other information that may be appropriate for an entity to disclose includes, for each class of taxation income that the entity cannot measure reliably during the period in which the taxable event occurs (see paragraphs B28–B31 of AASB 1058):

(a) information about the nature of the tax;

(b) the reason(s) why that income cannot be measured reliably; and

(c) when that uncertainty might be resolved.

An entity shall disclose the opening and closing balances of financial assets arising from transfers to enable an entity to acquire or construct recognisable non-financial assets to be controlled by the entity and the associated liabilities arising from such transfers, if not otherwise separately presented or disclosed. An entity shall also disclose income recognised in the reporting period arising from the reduction of an associated liability.

An entity shall disclose information about its obligations under such transfers, including a description of when the entity typically satisfies its obligations (for example, as the asset is constructed, upon completion of construction or when the asset is acquired).

An entity shall disclose the judgements, and changes in the judgements, made in applying AASB 1058 that significantly affect the determination of the amount and timing of income arising from transfers to enable an entity to acquire or construct a recognisable non-financial asset to be controlled by the entity. In particular, an entity shall explain the judgements, and changes in the judgements, made in determining the timing of satisfaction of obligations (see paragraphs 236 and 237).

For obligations that an entity satisfies over time, an entity shall disclose the methods used to recognise income (for example, a description of the output methods or input methods used and how those methods are applied).

For obligations satisfied at a point in time, an entity shall disclose the significant judgements made in evaluating when it has satisfied its obligations.

Paragraphs 239 to 241 apply only to government departments and other public sector entities that obtain part or all of their spending authority for the period from a parliamentary appropriation. The amounts disclosed in accordance with paragraphs 239–241 include any amounts appropriated in respect of which the entity recognises revenue or other income in accordance with another Australian Accounting Standard.

An entity shall disclose:

(a) a summary of the recurrent, capital or other major categories of amounts authorised for expenditure (including parliamentary appropriations), disclosing separately:

(i) the original amounts appropriated; and

(ii) the total of any supplementary amounts appropriated and amounts authorised other than by way of appropriation (eg by the Treasurer, other Minister or other legislative authority);

(b) the expenditures in respect of each of the items disclosed in (a) above; and

(c) the reasons for any material variances between the amounts appropriated or otherwise authorised and the resulting associated expenditures, and any financial consequences for the entity of unauthorised expenditure.

For the purposes of resource allocation decisions, including assessments of accountability, AASB 1058 requires that users of financial statements of government departments and other public sector entities that obtain part or all of their spending authority for the period from a parliamentary appropriation be provided with information about the amounts appropriated or otherwise authorised for the entity’s use, and whether the entity’s expenditures were as authorised. This information may be based on acquittal processes applied by an entity. When spending limits imposed by parliamentary appropriation or other authorisation have not been complied with, information regarding the amount of, and reasons for, the non-compliance is relevant for assessing the performance of management, the likely consequences of non-compliance, and the ability of the entity to continue to provide services at a similar or different level in the future.

Broad summaries of the major categories of appropriations and associated expenditures, rather than detailed reporting of appropriations for each activity or output, is sufficient for most users of such an entity’s financial statements. Determining the level of detail and the structure of the summarised information is a matter of judgement. To develop effective disclosures, entities also subject to AASB 1055 might consider the variance disclosure requirements in that Standard at the same time.

[44]

The objective of the disclosure requirements is for a public sector grantor to disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of assets, liabilities, revenue and cash flows arising from service concession arrangements. To achieve this, an entity shall consider disclosing qualitative and quantitative information about its service concession arrangements, including the following:

(a) a description of the arrangements;

(b) significant terms of the arrangements that may affect the amount, timing and uncertainty of future cash flows (eg the period of the arrangement, re-pricing dates and the basis upon which re-pricing or renegotiation is determined);

(c) the nature and extent (eg quantity, time period, or amount, as appropriate) of:

(i) rights to receive specified services from the operator;

(ii) the carrying amount of service concession assets as at the end of the reporting period, including separate disclosure for existing assets of the grantor reclassified as service concession assets during the reporting period;

(iii) rights to receive specified assets at the end of an arrangement;

(iv) renewal and termination options;

(v) other rights and obligations (eg major overhaul of service concession assets); and

(vi) obligations to provide the operator with access to service concession assets or other revenue-generating assets; and

(d) changes in arrangements occurring during the reporting period.

The disclosures provided by an entity in accordance with paragraph 242 are provided individually for each material service concession arrangement or in aggregate for service concession arrangements involving services of a similar nature, in addition to disclosures required by the sections covering Property, Plant and Equipment and Investment Property at Cost and Intangible Assets other than Goodwill. Service concession assets of a similar nature may form a subset of a class of assets disclosed in accordance with these sections or may be included in more than one class of assets disclosed in accordance with these sections. For example, for the purposes of the section covering Property, Plant and Equipment and Investment Property at Cost, a toll bridge may be included in the same class as other bridges, and for the purposes of paragraph 242 may be included with service concession assets reported in aggregate as toll roads.