In a joint submission CA ANZ and CPA Australia recommends that the AASB does not plan to implement the IASB’s proposals for a reduced disclosure regime at this time (IASB ED 2021/7 Subsidiaries without public accountability: Disclosures, exposed by the AASB as ED 314 of the same name).
The submission notes that the proposals, which offer subsidiaries of IFRS compliant parents the opportunity to make use of an IFRS compliant reduced disclosure regime, are a necessary international step for entities without public accountability not wishing to adopt the different recognition and measurement requirements contained in the IASB’s IFRS for SMEs Standard.
While the proposals have been produced using a similar methodology to that which was used to develop Australia’s new Tier 2 Simplified Disclosure Standard (AASB 1060), the narrow scope of the international project makes many of the outcomes in this ED unsuitable for application to the much wider group of entities that currently apply, or are about to begin applying, AASB 1060 in Australia.
Therefore, our submission recommends that the AASB delay application of this ED until such time as the implementation of AASB 1060 is complete and a review of its effectiveness can be undertaken.
By that time framework reform in the NFP sector will also be further progressed, meaning that the nature and scope of entities that are required to prepare a Tier 2 GPFR should be clearer, so more able to readily identify the place of these proposals in the Australian framework.
In making those decisions, the submission also recognises that there is ultimately a need to standardise the approach to a reduced disclosure regime for IFRS, both internationally and trans-Tasman, which will need to be addressed. The NZASB has announced that it does not currently intend to include a standard based on IASB ED 2021/7 in its framework.
IASB ED 2021/7 closes for comment on 31 January and CA ANZ and CPA Australia will be preparing a separate joint submission. Comments for possible inclusion should be emailed to [email protected].
IASB proposes reduce disclosure regime
IASB ED 2021/7Read more