By Victor Uson
Several for-profit private sector entities will be required to prepare their 30 June 2022 financial statements under Tier 2 general purpose financial statements. The Australian Accounting Standards Board (AASB) approved AASB 2020-2 Amendments to Australian Accounting Standards – Removal of Special Purpose Financial Statements for Certain For-Profit Private Sector Entities in March 2018. This means that these for-private sector entities will no longer be allowed to prepare and lodge special purpose financial statements moving forward.
The AASB cited differences between the Statement of Accounting Concepts (SAC) 1 Definition of the Reporting Entity, increase in large proprietary thresholds target reporting requirements to entities with economic significance, and the following reasons for the change:
What does it mean for my entity?
For-profit private sector financial statements will be significantly impacted by AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Entities. This includes potentially pivoting systems, procedures and practices used in preparing financial statements. Before implementing these changes, entities will need to:
Which entities will be impacted by AASB 1060?
The following for-profit entities will be impacted:
These entities will need to consider assessing the impact of AASB 1060 and engage with their relevant stakeholders.
The AASB have published useful fact sheets on the following:
An Important Message
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