Aligning the Simplified Disclosure Standard; AASB 1060, with the sector Tier 1 requirements

In June 2026, the AASB issued an Exposure Draft ED 341 Updating AASB 1060 to Align the Classification and Presentation Requirements with AASB 18 (ED 341) on aligning the classification and presentation requirements in AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities (AASB 1060) with AASB 18 Presentation and Disclosure in Financial Statements (AASB 18).

Our submission to the AASB made the following key points:

1. In line with the views in our submission on special purpose reporting reforms and simplified disclosure requirements (ITC 56), feedback from our stakeholders continues to indicate that both preparers and users value consistency between Tier 1 (full disclosures) and Tier 2 presentation requirements. This is to promote the comparability of the financial statements of all types and entity sizes.
2. We support the approach to aligning AASB 1060 with AASB 18, and the proposed amendments to AASB 1060, set out in ED 341. We also appreciate the AASB’s efforts to fast track these proposals so that Tier 2 entities can adopt them as soon as possible.
3. Finally, we also support consistency of presentation requirements within sectors and so agree that if the AASB decides to provide concessions from the AASB 18 requirements to Tier 1 entities in the not-for-profit (NFP) public and private sectors, then the same concessions should also be available to Tier 2 entities in those sectors.