The professional bodies joint submission has supported the AASB’s proposals to reduce and simplify the disclosures required in Tier 2 General Purpose Financial Statements (GPFS) as set out in its ED 295 General Purpose Financial Statement – Simplified Disclosures for For-profit and Not-for-profit Tier 2 Entities.
The submission supports the use of a separate standard, based more closely on the internationally recognised IFRS for SMEs standard, as an improvement over earlier proposals and the existing reduced disclosure regime contained in AASB 1053. The current proposals recognise the concerns expressed by members in our recent survey that disclosures needed to be proportionate to the nature of the entities involved.
However our submission does not support the mandatory effective date of June 2021. It expresses the view that the transition timetable should not be accelerated ahead of what preparers would normally have available for reforms of this nature (i.e. two years). This is especially the case because these proposals are closely linked to the ED 297 proposals, removing the use of special purpose reporting for some entities, where our submission also recommended a longer transition period.
Joint submission ED 297: Removal of Special Purpose Financial Statements for Certain For-Profit Private Sector EntitiesFind out more
Reforming the use of special purpose reportingFind out more
Where to now for special purpose reporting reforms - by Amir Ghandar CAFind out more