Reduced Disclosure Requirements (RDR) Developments

The AASB have made accounting standard layout changes, so that paragraphs identifying disclosure concessions under the Australian Reduced Disclosure Requirements (RDR) have been moved to a separate appendix in each Standard, along with any specific RDR paragraphs.

For convenience, the requirements with which Tier 2 entities are not required to comply continue to be shaded in the pronouncements in order to highlight the disclosure concessions. The AASB is currently exploring whether (and if so, how) it is necessary to change its current principles for determining RDR disclosures. The AASB expects to expose proposals in this regard for comment in 2017.

Many not-for-profit organisations that are ‘reporting entities’ elect to utilise the RDR (Tier 2) format within their financial statements.

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