revised framework for the AASB to determine Tier 2 disclosure requirements as well as proposed disclosure reductions for existing Australian Accounting Standards, which would replace the existing RDR disclosure concessions. The AASB has received a of comments from 14 Australian respondents in response to ED 277 and is addressing the issues raised in conjunction with the New Zealand Accounting Standards Board, which has the same Tier 2 requirements for entities. However, it is relevant to note here that all respondents supported redeveloping and improving the existing Tier 2 requirements (ie more disclosure concessions given). The respondents’ views further support the PIR outcomes that change is needed to the existing Tier 2 concessions for GPFS for eligible entities. The optional basis of eligible entities being able to elect to apply Tier 2 rather than Tier 1 in preparing GPFS continues to be supported. ED 277 respondents also noted that the Tier 2 RDR requirements are a key component of another AASB project, to improve the Australian financial reporting framework, which may resolve the issue of SPFS and result in a greater take-up of Tier 2. Consequently, the AASB is continuing to develop its approach to revising the Tier 2 requirements. Reporting entities The Australian Accounting Standards Board (AASB) makes Australian Accounting Standards, including Interpretations, to be applied by: entities required by the to prepare financial reports; Corporations Act 2001 governments in preparing financial statements for the whole of government and the General Government Sector (GGS); and entities in the private or public for-profit or not-for-profit sectors that are reporting entities or that prepare general purpose financial statements (GPFS). entities’ are required to prepare GPFS that comply with the AASB ‘Reporting Accounting Standards. A reporting entity is defined in AASB 1053 Application of as an entity in respect of which it is Tiers of Australian Accounting Standards reasonable to expect the existence of users who rely on the entity’s GPFS for information that will be useful to them for making and evaluating decisions about the allocation of resources. A reporting entity can be a single entity or a group comprising a parent entity and all of its subsidiaries. Whether an entity is or is not a reporting entity is determined by each entity. Assessing whether an entity is a reporting entity requires significant judgement in many cases. Statement of Accounting Concepts SAC 1 Definition of the Reporting sets out guidance rather than mandatory requirements. SAC 1 identifies the Entity following indicative, primary factors to be considered in determining whether an entity is a reporting entity: the separation of management from holders of economic interests
revised framework for the AASB to determine Tier 2 disclosure requirements as well as proposed disclosure reductions for existing Australian Accounting Standards, which would replace the existing RDR disclosure concessions. The AASB has received a of comments from 14 Australian respondents in response to ED 277 and is addressing the issues raised in conjunction with the New Zealand Accounting Standards Board, which has the same Tier 2 requirements for entities. However, it is relevant to note here that all respondents supported redeveloping and improving the existing Tier 2 requirements (ie more disclosure concessions given). The respondents’ views further support the PIR outcomes that change is needed to the existing Tier 2 concessions for GPFS for eligible entities. The optional basis of eligible entities being able to elect to apply Tier 2 rather than Tier 1 in preparing GPFS continues to be supported. ED 277 respondents also noted that the Tier 2 RDR requirements are a key component of another AASB project, to improve the Australian financial reporting framework, which may resolve the issue of SPFS and result in a greater take-up of Tier 2. Consequently, the AASB is continuing to develop its approach to revising the Tier 2 requirements. Reporting entities The Australian Accounting Standards Board (AASB) makes Australian Accounting Standards, including Interpretations, to be applied by: entities required by the Corporations Act 2001 to prepare financial reports; governments in preparing financial statements for the whole of government and the General Government Sector (GGS); and entities in the private or public for-profit or not-for-profit sectors that are reporting entities or that prepare general purpose financial statements (GPFS). ‘Reporting entities’ are required to prepare GPFS that comply with the AASB Accounting Standards. A reporting entity is defined in AASB 1053 Application of Tiers of Australian Accounting Standards as an entity in respect of which it is reasonable to expect the existence of users who rely on the entity’s GPFS for information that will be useful to them for making and evaluating decisions about the allocation of resources. A reporting entity can be a single entity or a group comprising a parent entity and all of its subsidiaries. Whether an entity is or is not a reporting entity is determined by each entity. Assessing whether an entity is a reporting entity requires significant judgement in many cases. Statement of Accounting Concepts SAC 1 Definition of the Reporting Entity sets out guidance rather than mandatory requirements. SAC 1 identifies the following indicative, primary factors to be considered in determining whether an entity is a reporting entity: the separation of management from holders of economic interests