Date posted: 19/08/2019 2 min read

Joint Submission on ED293 - Disclosure in Special Purpose Financial Statements of Compliance with Recognition and Measurement Requirements

CA ANZ / CPA Australia submission recommends the AASB does not proceed with these proposals ahead of completed framework reform

We have jointly recommended that the AASB not progress the proposed amendments to AASB 1054 Australian Additional Disclosures in relation to additional disclosures in special purpose financial statements (SPFS) of compliance with the recognition and measurement (R&M) requirements in Australian Accounting Standards (AAS). 

Our submission argues that they will only serve to complicate the broader discussions and developments that need to occur in the next year and beyond about appropriate user needs-based levels of financial reporting in both the for-profit (FP) and not-for-profit (NFP) sectors. If they are implemented, instead of focussing on contributing to that reform process, many FP stakeholders will instead be focused on potentially short-lived reforms that are likely to be replaced from 2021 while many NFP stakeholders will be focussed on change that may become unnecessary when that reform process is complete. 

The submission also argues that the disclosures are unclear in scope, are complex and inconsistent, and could be difficult for preparers to develop, especially for charities. If backdated as proposed to 1 July 2019 they also give preparers inadequate time to prepare for the change. Finally, it expresses concern that the AASB has yet to publish the research on which these reforms rely.