In a joint submission CA ANZ and CPA Australia have supported the AASB’s proposals to provide additional transition relief for certain entities that, as part of the AASB’s special purpose reforms, are now required to produce consolidated general purpose financial reports. The new relief will optionally extend the transition relief available under AASB 1 First-time Adoption of Australian Accounting Standards to foreign controlled entities with parents applying not just Australian Accounting Standards (AAS) but also International Financial Reporting Standards (IFRS). This will reduce the transition costs being incurred by these entities without impairing the quality of the financial information they will now be required to prepare and lodge.
The relief will also optionally extend the consolidation transition relief provided in AASB 1053 Application of Tiers of Australian Accounting Standards, regarding the application of AASB 1, to entities transitioning from single entity Tier 2 General Purpose Financial Statements (GPFS) to consolidated Tier 2 GPFS. This is a necessary practical expedient to facilitate transition on a cost benefit basis. It is also consistent with the relief already granted to entities who prepared Special Purpose Financial Statements (SPFS) adopting full AAS recognition and measurement, if they are now required to transition to the preparation of consolidated GPFS.
The submission also supports the proposed effective date of these changes, periods ending on or after 30 June 2022, to ensure alignment with the implementation of AASB 2020-2 Removal of Special Purpose Financial Statements for Certain For-Profit Private Sector Entities.
AASB ED 315
Extending transition relief under AASB 1Read more
Removal of Special Purpose Financial Statements for Certain For-Profit Private Sector EntitiesRead more