AASB February Meeting: Important decisions made on ITC 39 Phase 2, Tier 2 Framework and not-for-Profit (NFP) definition and guidance.

During the AASB meeting held on 19th February, the Board decided:

  • ITC 39 Phase 2: to proceed with Phase 2 of ITC 39 to develop a consistent, comparable, transparent and enforceable financial reporting framework for for-profit private sector entities, after considering feedback from users, preparers and other stakeholders on ITC 39. The Board will develop an Exposure Draft proposing  to remove the ability for entities to self-assess and prepare SPFS, and require entities to prepare some form of GPFS;
  • Tier 2 GPFS framework: as part of Phase 2 of ITC 39, to propose replacing the current ‘RDR’ Tier 2 with a framework which would continue to apply full recognition and measurement requirements in AAS (including consolidation and equity accounting), but require disclosures based on the disclosures of IFRS for SMEs. The Board will propose containing all disclosures for the framework in a single Standard; and
  • Not-for-Profit (NFP) definition and guidance:  to issue an Exposure Draft proposing to replace the current definition of ‘NFP entity’ with the definition (and related guidance) of ‘public benefit entity’ proposed in New Zealand, but retaining the term not-for-profit.

To view the full AASB Action Alert, click here.

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