ED 295 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities proposes replacing the current Reduced Disclosure Requirements (RDR) in the Australian Accounting Standards (AAS) with a new, separate disclosure standard (the Simplified Disclosure Standard) that would apply to all entities that report under Tier 2 of the differential reporting framework set out in AASB 1053 Application of Tiers of Australian Accounting Standards. The Simplified Disclosure Standard has been developed based on the IFRS for SMEs disclosures, adapted for differences in recognition and measurement (R&M) requirements between AAS and IFRS for SMEs, and to accommodate not-for-profit (NFP) specific circumstances.
The proposals in ED 295 are being made in conjunction with the forthcoming Exposure Draft on the proposed removal of special purpose financial statements (SPFS). They will reduce the disclosures required under current RDR and will therefore reduce the cost for entities that have to transition from SPFS to general purpose financial statements if the AASB’s proposal to remove SPFS is implemented.
To view the AASB Exposure Draft in full, and to provide comments, click here.