The professional bodies joint submission has recommended that the AASB does not proceed with its proposals to require mandatory minimum disclosures about compliance with accounting standards in the special purpose financial reports of many for profit entities. We are of the view that the proposals in this ED add an additional unnecessary, and costly, layer of complexity to the effective achievement of financial reporting framework reform in the for-profit sector.
Rather than pursuing the implementation of these proposals, we believe the Board’s resources can be better utilised in:
- educating key stakeholders about the requirements and impacts of the new for-profit (FP) financial reporting framework being introduced by AASB 2020-2 Amendments to Australian Accounting Standards – Removal of Special Purpose Financial Statements for Certain For-Profit Private Sector Entities and providing resources and other educational material that will support its effective adoption.
- continuing to consult with, and prepare, not-for-profit (NFP) entities for the changes to their financial reporting framework anticipated from that phase of the reform project.