Date posted: 06/10/2021

Joint submission ED 312 - Disclosure of Accounting Policies – Proposed Amendments to Tier 2 and Other Australian Accounting Standards

Joint submission supports AASB’s plans to extend application of accounting policy disclosure reforms

In a joint submission CA ANZ and CPA Australia have supported the AASB’s plans to update several of its domestic standards  for recent reforms to the disclosure of accounting policies. The AASB is updating AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities; AASB 1054 Australian Additional Disclosures; and AASB 1049 Whole of Government and General Government Sector Financial Reporting to replace the word “significant” with that of “material” when describing accounting policies.

The change reflects the outcomes of work done by the IASB to make it easier for preparers to determine which accounting policies should be disclosed in their financial statements. The changes were implemented to IFRS standards in early 2021 and to the Australian equivalents via AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting Estimates.

However, since AASB 1060, AASB 1054 and AASB 1049 have no international equivalent, separate but corresponding amendments are required.

IASB project on disclosing material accounting policies 

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