New disclosure requirements for NFPs preparing special purpose financial statements (SPFS) take effect for financial years ending on or after 30 June 2020.
You will need to make new disclosures about your compliance with the recognition and measurement (R&M) requirements in Australian Accounting Standards (AAS) if you are a:
- charity registered with the Australian Charities and Not-for-profits Commission with an annual revenue of $250,000 or more and you prepare SPFS
- NFP lodging SPFS with the Australian Securities & Investments Commission under the Corporations Act 2001 (for example companies limited by guarantee).
In brief, from 30 June 2020, your SPFS will need to disclose:
- why the decision was made to prepare SPFS
- for each material accounting policy that does not comply with the R&M requirements, an indication of where it does not comply or that the assessment has not been made
- the overall compliance of your SPFS with the R&M requirements of AAS (except for consolidation and equity accounting), or whether this assessment has not been made
- how the consolidation and equity accounting requirements have been applied.
To view the Amendment to AASB 1054, click here.
To view the guide provided by the AASB, click here.