disclosure standard for Tier 2
NEW DISCLOSURE STANDARD FOR TIER 2
Disclosures relevant to Tier 2 entities have been detailed in a new standard – shading will no longer be used to show which disclosures in other standards may be omitted.
AASB 1060
General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities
will apply for financial years beginning on or after 1 July 2020.
It aims to reduce the reporting 'burden' of for-profit and not-for-profit entities using current Tier 2 requirements for preparing general-purpose financial statements. Some existing disclosures have been removed and new disclosures required.
AASB 1060 does not change which entities are permitted to apply Tier 2 reporting requirements nor Tier 2's recognition and measurement requirements, which are the same as for Tier 1 entities.
If you have to step up from special-purpose to general-purpose financial reports you will see an overall increase in disclosures (for example, in related parties, tax and financial instruments), but you will also be able to remove some disclosures because of not having to comply fully with:
- AASB 101 Presentation of Financial Statements
- AASB 107 Statement of Cash Flows
- AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors
- AASB 1048 Interpretation of Standards , and
- AASB 1054 Australian Additional Disclosures .
Early adoption of AASB 1060 is encouraged via special transitional relief (provided in AASB 2020-2) from disclosing certain comparative information in the first year.
