{"id":"F2021L00471","name":"Accounting Standard AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting Estimates","slug":"accounting-standard-aasb-2021-2-amendments-to-australian-accounting-standards-disclosure-of-accounti","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":101709,"registerId":"commonwealth-F2021L00471-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Obtaining a copy of this Accounting Stan","sectionType":"part","heading":"Obtaining a copy of this Accounting Standard","content":"# Obtaining a copy of this Accounting Standard\n\nThis Standard is available on the AASB website: www.aasb.gov.au.\n\nAustralian Accounting Standards Board\n\nPO Box 204\n\nCollins Street West\n\nVictoria 8007\n\nAUSTRALIA\n\nPhone: (03) 9617 7600\n\nE-mail: standard@aasb.gov.au\n\nWebsite: www.aasb.gov.au","sortOrder":0},{"sectionNumber":"Other enquiries","sectionType":"part","heading":"Other enquiries","content":"# Other enquiries\n\nPhone: (03) 9617 7600\n\nE-mail: standard@aasb.gov.au\n\nCOPYRIGHT\n\n© Commonwealth of Australia 2021\n\nThis AASB Standard contains IFRS Foundation copyright material. Reproduction within Australia in unaltered form (retaining this notice) is permitted for personal and non\\-commercial use subject to the inclusion of an acknowledgment of the source. Requests and enquiries concerning reproduction and rights for commercial purposes within Australia should be addressed to The National Director, Australian Accounting Standards Board, PO Box 204, Collins Street West, Victoria 8007.\n\nAll existing rights in this material are reserved outside Australia. Reproduction outside Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use only. Further information and requests for authorisation to reproduce for commercial purposes outside Australia should be addressed to the IFRS Foundation at www.ifrs.org.\n\nISSN 1036-4803","sortOrder":1},{"sectionNumber":"Contents","sectionType":"part","heading":"Contents","content":"# Contents\n\nPreface\n\nAccounting Standard\n\nAASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting Estimates\n\nfrom page\n\nObjective 5\n\nApplication 5\n\nAmendments to AASB 101 5\n\nAmendments to AASB 108 8\n\nAMENDMENTS TO OTHER AASB STANDARDS AND PUBLICATIONS 9\n\nAmendments to AASB 7 9\n\nAmendments to AASB 134 11\n\nAmendments to AASB Practice Statement 2 11\n\nCOMMENCEMENT OF THE LEGISLATIVE INSTRUMENT 17\n\naVailable on the AASB website\n\nIASB Implementation guidance – Amendments\n\nIASB Bases for Conclusions – Amendments\n\nAustralian Accounting Standard AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting Estimates is set out on pages 5 – 17. All the paragraphs have equal authority.","sortOrder":2},{"sectionNumber":"Preface","sectionType":"part","heading":"Preface","content":"# Preface\n\n## Standards amended by AASB 2021-2\n\nThis Standard makes amendments to the following Australian Accounting Standards:\n\n(a) AASB 7 Financial Instruments: Disclosures (August 2015);\n\n(b) AASB 101 Presentation of Financial Statements (July 2015);\n\n(c) AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors (August 2015); and\n\n(d) AASB 134 Interim Financial Reporting (August 2015).\n\nThe Standard also makes amendments to AASB Practice Statement 2 Making Materiality Judgements (December 2017).\n\nThese amendments arise from the issuance by the International Accounting Standards Board (IASB) in February 2021 of the following International Financial Reporting Standards:\n\n(a) Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2); and\n\n(b) Definition of Accounting Estimates (Amendments to IAS 8).\n\n## Main features of this Standard\n\nMain requirements\n\nThis Standard amends:\n\n(a) AASB 7, to clarify that information about measurement bases for financial instruments is expected to be material to an entity’s financial statements;\n\n(b) AASB 101, to require entities to disclose their material accounting policy information rather than their significant accounting policies;\n\n(c) AASB 108, to clarify how entities should distinguish changes in accounting policies and changes in accounting estimates;\n\n(d) AASB 134, to identify material accounting policy information as a component of a complete set of financial statements; and\n\n(e) AASB Practice Statement 2, to provide guidance on how to apply the concept of materiality to accounting policy disclosures.\n\nApplication date\n\nThis Standard applies to annual periods beginning on or after 1 January 2023. The amendments to individual Standards may be applied early, separately from the amendments to the other Standards, where feasible.","sortOrder":3},{"sectionNumber":"Standards amended by AASB 2021-2","sectionType":"part","heading":"Standards amended by AASB 2021-2","content":"## Standards amended by AASB 2021-2\n\nThis Standard makes amendments to the following Australian Accounting Standards:\n\n(a) AASB 7 Financial Instruments: Disclosures (August 2015);\n\n(b) AASB 101 Presentation of Financial Statements (July 2015);\n\n(c) AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors (August 2015); and\n\n(d) AASB 134 Interim Financial Reporting (August 2015).\n\nThe Standard also makes amendments to AASB Practice Statement 2 Making Materiality Judgements (December 2017).\n\nThese amendments arise from the issuance by the International Accounting Standards Board (IASB) in February 2021 of the following International Financial Reporting Standards:\n\n(a) Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2); and\n\n(b) Definition of Accounting Estimates (Amendments to IAS 8).","sortOrder":4},{"sectionNumber":"Main features of this Standard","sectionType":"part","heading":"Main features of this Standard","content":"## Main features of this Standard\n\nMain requirements\n\nThis Standard amends:\n\n(a) AASB 7, to clarify that information about measurement bases for financial instruments is expected to be material to an entity’s financial statements;\n\n(b) AASB 101, to require entities to disclose their material accounting policy information rather than their significant accounting policies;\n\n(c) AASB 108, to clarify how entities should distinguish changes in accounting policies and changes in accounting estimates;\n\n(d) AASB 134, to identify material accounting policy information as a component of a complete set of financial statements; and\n\n(e) AASB Practice Statement 2, to provide guidance on how to apply the concept of materiality to accounting policy disclosures.\n\nApplication date\n\nThis Standard applies to annual periods beginning on or after 1 January 2023. The amendments to individual Standards may be applied early, separately from the amendments to the other Standards, where feasible.","sortOrder":5},{"sectionNumber":"Accounting Standard AASB 2021-2","sectionType":"part","heading":"Accounting Standard AASB 2021-2","content":"# Accounting Standard AASB 2021-2\n\nThe Australian Accounting Standards Board makes Accounting Standard AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting Estimates under section 334 of the Corporations Act 2001.\n\n|                     | Keith Kendall |\n| ------------------- | ------------- |\n| Dated 30 March 2021 | Chair – AASB  |","sortOrder":6},{"sectionNumber":"Objective","sectionType":"part","heading":"Objective","content":"## Objective\n\nThis Standard amends:\n\n(a) AASB 7 Financial Instruments: Disclosures (August 2015);\n\n(b) AASB 101 Presentation of Financial Statements (July 2015);\n\n(c) AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors (August 2015);\n\n(d) AASB 134 Interim Financial Reporting (August 2015); and\n\n(e) AASB Practice Statement 2 Making Materiality Judgements (December 2017);\n\nas a consequence of the issuance by the International Accounting Standards Board in February 2021 of the following International Financial Reporting Standards:\n\n(f) Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2); and\n\n(g) Definition of Accounting Estimates (Amendments to IAS 8).","sortOrder":8},{"sectionNumber":"Application","sectionType":"part","heading":"Application","content":"## Application\n\nThe amendments set out in this Standard apply to entities and financial statements in accordance with the application of the other Standards set out in AASB 1057 Application of Australian Accounting Standards.\n\nThis Standard applies to annual periods beginning on or after 1 January 2023. The amendments to individual Standards may be applied early, separately from the amendments to the other Standards, where feasible.\n\nThis Standard uses underlining, striking out and other typographical material to identify some of the amendments to a Standard, in order to make the amendments more understandable. However, the amendments made by this Standard do not include that underlining, striking out or other typographical material. Ellipses (…) are used to help provide the context within which amendments are made and also to indicate text that is not amended.","sortOrder":9},{"sectionNumber":"Amendments to AASB 101","sectionType":"part","heading":"Amendments to AASB 101","content":"## Amendments to AASB 101\n\n| Paragraphs 7, 10, 114, 117 and 122 are amended. Paragraphs 117A–117E and 139V are added. Paragraphs 118, 119 and 121 are deleted. New text is underlined and deleted text is struck through. |\n| -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n\nDefinitions\n\n    7 The following terms are used in this Standard with the meanings specified:\n    Accounting policies are defined in paragraph 5 of AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, and the term is used in this Standard with the same meaning.\n    ...\n\nFinancial statements\n\n    ...\n\nComplete set of financial statements\n\n    10 A complete set of financial statements comprises:\n    …\n    (e) notes, comprising material significant accounting policy information policies and other explanatory information;\n    …\n\nStructure and content\n\n    ...\n\nNotes\n\nStructure\n\n    ...\n    114 Examples of systematic ordering or grouping of the notes include:\n    …\n    (c) following the order of the line items in the statement(s) of profit or loss and other comprehensive income and the statement of financial position, such as:\n    …\n    (ii) material significant accounting policy information policies applied (see paragraph 117);\n    …\n\nDisclosure of accounting policy information policies\n\n    117 An entity shall disclose material its significant accounting policy information (see paragraph 7). Accounting policy information is material if, when considered together with other information included in an entity’s financial statements, it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements. policies comprising:\n    (a) the measurement basis (or bases) used in preparing the financial statements; and\n    (b) the other accounting policies used that are relevant to an understanding of the financial statements.\n    117A Accounting policy information that relates to immaterial transactions, other events or conditions is immaterial and need not be disclosed. Accounting policy information may nevertheless be material because of the nature of the related transactions, other events or conditions, even if the amounts are immaterial. However, not all accounting policy information relating to material transactions, other events or conditions is itself material.\n    117B Accounting policy information is expected to be material if users of an entity’s financial statements would need it to understand other material information in the financial statements. For example, an entity is likely to consider accounting policy information material to its financial statements if that information relates to material transactions, other events or conditions and:\n    (a) the entity changed its accounting policy during the reporting period and this change resulted in a material change to the information in the financial statements;\n    (b) the entity chose the accounting policy from one or more options permitted by Australian Accounting Standards—such a situation could arise if the entity chose to measure investment property at historical cost rather than fair value;\n    (c) the accounting policy was developed in accordance with AASB 108 in the absence of an Australian Accounting Standard that specifically applies;\n    (d) the accounting policy relates to an area for which an entity is required to make significant judgements or assumptions in applying an accounting policy, and the entity discloses those judgements or assumptions in accordance with paragraphs 122 and 125; or\n    (e) the accounting required for them is complex and users of the entity’s financial statements would otherwise not understand those material transactions, other events or conditions—such a situation could arise if an entity applies more than one Australian Accounting Standard to a class of material transactions.\n    117C Accounting policy information that focuses on how an entity has applied the requirements of the Australian Accounting Standards to its own circumstances provides entity-specific information that is more useful to users of financial statements than standardised information, or information that only duplicates or summarises the requirements of the Standards.\n    117D If an entity discloses immaterial accounting policy information, such information shall not obscure material accounting policy information.\n    117E An entity’s conclusion that accounting policy information is immaterial does not affect the related disclosure requirements set out in other Australian Accounting Standards.\n    118 \\[Deleted\\]It is important for an entity to inform users of the measurement basis or bases used in the financial statements (for example, historical cost, current cost, net realisable value, fair value or recoverable amount) because the basis on which an entity prepares the financial statements significantly affects users’ analysis. When an entity uses more than one measurement basis in the financial statements, for example when particular classes of assets are revalued, it is sufficient to provide an indication of the categories of assets and liabilities to which each measurement basis is applied.\n    119 \\[Deleted\\]In deciding whether a particular accounting policy should be disclosed, management considers whether disclosure would assist users in understanding how transactions, other events and conditions are reflected in reported financial performance and financial position. Each entity considers the nature of its operations and the policies that the users of its financial statements would expect to be disclosed for that type of entity. Disclosure of particular accounting policies is especially useful to users when those policies are selected from alternatives allowed in Australian Accounting Standards. An example is disclosure of whether an entity applies the fair value or cost model to its investment property (see AASB 140 Investment Property). Some Australian Accounting Standards specifically require disclosure of particular accounting policies, including choices made by management between different policies they allow. For example, AASB 116 requires disclosure of the measurement bases used for classes of property, plant and equipment.\n    120 \\[Deleted\\]\n    121 \\[Deleted\\]An accounting policy may be significant because of the nature of the entity’s operations even if amounts for current and prior periods are not material. It is also appropriate to disclose each significant accounting policy that is not specifically required by Australian Accounting Standards but the entity selects and applies in accordance with AASB 108.\n    122 An entity shall disclose, along with material its significant accounting policy information policies or other notes, the judgements, apart from those involving estimations (see paragraph 125), that management has made in the process of applying the entity’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements.\n    ...\n\nTransition and effective date\n\n    ...\n    139V AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting Estimates, issued in March 2021, amended paragraphs 7, 10, 114, 117 and 122, added paragraphs 117A–117E and deleted paragraphs 118, 119 and 121. It also amended AASB Practice Statement 2 Making Materiality Judgements. An entity shall apply the amendments to AASB 101 for annual reporting periods beginning on or after 1 January 2023. Earlier application is permitted. If an entity applies those amendments for an earlier period, it shall disclose that fact.","sortOrder":10},{"sectionNumber":"Amendments to AASB 108","sectionType":"part","heading":"Amendments to AASB 108","content":"## Amendments to AASB 108\n\n| Paragraphs 5, 32, 34, 38 and 48 and the heading above paragraph 32 are amended. Paragraphs 32A–32B, 34A and 54I and the headings above paragraphs 34 and 36 are added. The heading above paragraph 39 is amended to be a sub-heading of the heading added above paragraph 34. Deleted text is struck through and new text is underlined. |\n| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n\nDefinitions\n\n    5 The following terms are used in this Standard with the meanings specified:\n    Accounting estimates are monetary amounts in financial statements that are subject to measurement uncertainty.\n    …\n    A change in accounting estimate is an adjustment of the carrying amount of an asset or a liability, or the amount of the periodic consumption of an asset, that results from the assessment of the present status of, and expected future benefits and obligations associated with, assets and liabilities. Changes in accounting estimates result from new information or new developments and, accordingly, are not corrections of errors.\n    …\n\nAccounting Changes in accounting estimates\n\n    32 An accounting policy may require items in financial statements to be measured in a way that involves measurement uncertainty – that is, the accounting policy may require such items to be measured at monetary amounts that cannot be observed directly and must instead be estimated. In such a case, an entity develops an accounting estimate to achieve the objective set out by the accounting policy. As a result of the uncertainties inherent in business activities, many items in financial statements cannot be measured with precision but can only be estimated. Developing accounting estimates involves the use of judgements or assumptions Estimation involves judgements based on the latest available, reliable information. Examples of accounting estimates include For example, estimates may be required of:\n    (a) a loss allowance for expected credit losses, applying AASB 9 Financial Instruments bad debts;\n    (b) the net realisable value of an item of inventory, applying AASB 102 Inventories inventory obsolescence;\n    (c) the fair value of an asset or liability, applying AASB 13 Fair Value Measurement financial assets or financial liabilities;\n    (d) the depreciation expense for an item of property, plant and equipment, applying AASB 116 the useful lives of, or expected pattern of consumption of the future economic benefits embodied in, depreciable assets; and\n    (e) a provision for warranty obligations, applying AASB 137 Provisions, Contingent Liabilities and Contingent Assets.\n    32A An entity uses measurement techniques and inputs to develop an accounting estimate. Measurement techniques include estimation techniques (for example, techniques used to measure a loss allowance for expected credit losses applying AASB 9) and valuation techniques (for example, techniques used to measure the fair value of an asset or liability applying AASB 13).\n    32B The term ‘estimate’ in Australian Accounting Standards sometimes refers to an estimate that is not an accounting estimate as defined in this Standard. For example, it sometimes refers to an input used in developing accounting estimates.\n    …\n\nChanges in accounting estimates\n\n    34 An entity may need to change an accounting estimate may need revision if changes occur in the circumstances on which the accounting estimate was based or as a result of new information, new developments or more experience. By its nature, a change in an accounting the revision of an estimate does not relate to prior periods and is not the correction of an error.\n    34A The effects on an accounting estimate of a change in an input or a change in a measurement technique are changes in accounting estimates unless they result from the correction of prior period errors.\n    …\n\nApplying changes in accounting estimates\n\n    36 …\n    38 Prospective recognition of the effect of a change in an accounting estimate means that the change is applied to transactions, other events and conditions from the date of that the change in estimate. A change in an accounting estimate may affect only the current period’s profit or loss, or the profit or loss of both the current period and future periods. For example, a change in a loss allowance for expected credit losses the estimate of the amount of bad debts affects only the current period’s profit or loss and therefore is recognised in the current period. However, a change in the estimated useful life of, or the expected pattern of consumption of the future economic benefits embodied in, a depreciable asset affects depreciation expense for the current period and for each future period during the asset’s remaining useful life. In both cases, the effect of the change relating to the current period is recognised as income or expense in the current period. The effect, if any, on future periods is recognised as income or expense in those future periods.\n\nDisclosure\n\nDisclosure\n\n    39 …\n\nErrors\n\n    …\n    48 Corrections of errors are distinguished from changes in accounting estimates. Accounting estimates by their nature are approximations that may need changing revision as additional information becomes known. For example, the gain or loss recognised on the outcome of a contingency is not the correction of an error.\n    …\n\nEffective date and transition\n\n    …\n    54I AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting Estimates, issued in March 2021, amended paragraphs 5, 32, 34, 38 and 48 and added paragraphs 32A, 32B and 34A. An entity shall apply these amendments for annual reporting periods beginning on or after 1 January 2023\\. Earlier application is permitted. An entity shall apply the amendments to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the first annual reporting period in which it applies the amendments.","sortOrder":11},{"sectionNumber":"Amendments to other AASB Standards and p","sectionType":"part","heading":"Amendments to other AASB Standards and publications","content":"## Amendments to other AASB Standards and publications\n\nAmendments to AASB 7\n\n| Paragraphs 21 and B5 are amended. Paragraph 44II is added. New text is underlined and deleted text is struck through. |\n| --------------------------------------------------------------------------------------------------------------------- |\n\nSignificance of financial instruments for financial position and performance\n\n    ...\n\nOther disclosures\n\nAccounting policies\n\n    21 In accordance with paragraph 117 of AASB 101 Presentation of Financial Statements, an entity discloses material its significant accounting policy information policies comprising the measurement basis (or bases) used in preparing the financial statements and the other accounting policies used that are relevant to an understanding of the financial statements. Information about the measurement basis (or bases) for financial instruments used in preparing the financial statements is expected to be material accounting policy information.\n    ...\n\nEffective date and transition\n\n    ...\n    44II AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting Estimates, which amends AASB 101 and AASB Practice Statement 2 Making Materiality Judgements, and was issued in March 2021, amended paragraphs 21 and B5. An entity shall apply that amendment for annual reporting periods beginning on or after 1 January 2023. Earlier application is permitted. If an entity applies the amendment for an earlier period, it shall disclose that fact.\n    ...\n\nAppendix B  \nApplication guidance\n\n    ...\n\nClasses of financial instruments and level of disclosure (paragraph 6)\n\n    ...\n\nOther disclosure – accounting policies (paragraph 21)\n\n    B5 Paragraph 21 requires disclosure of material accounting policy information, which is expected to include information about the measurement basis (or bases) for financial instruments used in preparing the financial statements and the other accounting policies used that are relevant to an understanding of the financial statements. For financial instruments, such disclosure may include:\n    …\n    Paragraph 122 of AASB 101 also requires entities to disclose, along with material its significant accounting policy information policies or other notes, the judgements, apart from those involving estimations, that management has made in the process of applying the entity’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements.\n\nAmendments to AASB 134\n\n| Paragraph 5 is amended and paragraph 60 is added. New text is underlined and deleted text is struck through. |\n| ------------------------------------------------------------------------------------------------------------ |\n\nContent of an interim financial report\n\n    5 AASB 101 defines a complete set of financial statements as including the following components:\n    …\n    (e) notes, material comprising significant accounting policy information policies and other explanatory information;\n    …\n\nEffective date\n\n    ...\n    60 AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting Estimates, which amends AASB 101 and AASB Practice Statement 2 Making Materiality Judgements, and was issued in March 2021, amended paragraph 5. An entity shall apply that amendment for annual reporting periods beginning on or after 1 January 2023. Earlier application is permitted. If an entity applies the amendment for an earlier period, it shall disclose that fact.","sortOrder":12},{"sectionNumber":"Amendments to AASB Practice Statement 2","sectionType":"part","heading":"Amendments to AASB Practice Statement 2","content":"## Amendments to AASB Practice Statement 2\n\n| Paragraphs 88A–88G and their heading, and Examples S and T, are added. Paragraphs 117, 117A, 117B, 117C, 117D and 117E of AASB 101 are added to Appendix B and Appendix AusCF B. For ease of reading, new text is not underlined. |\n| --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n\nSpecific topics\n\n    ...\n\nInformation about accounting policies\n\n    88A Paragraph 117 of AASB 101 requires an entity to disclose material accounting policy information.\n    88B Accounting policy information relating to immaterial transactions, other events or conditions is immaterial and need not be disclosed. Accounting policy information may nevertheless be material because of the nature of the related transactions, other events or conditions, even if the amounts are immaterial. An entity is required to disclose accounting policy information relating to material transactions, other events or conditions if that information is material to the financial statements.\n    88C In assessing whether accounting policy information is material to its financial statements, an entity considers whether users of the entity’s financial statements would need that information to understand other material information in the financial statements. An entity makes this assessment in the same way it assesses other information: by considering qualitative and quantitative factors, as described in paragraphs 44–55. Diagram 2 illustrates how an entity assesses whether accounting policy information is material and, therefore, shall be disclosed.","sortOrder":13},{"sectionNumber":"Commencement of the legislative instrume","sectionType":"part","heading":"Commencement of the legislative instrument","content":"## Commencement of the legislative instrument\n\nFor legal purposes, this legislative instrument commences on 31 December 2022.","sortOrder":14}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The legislation remains focused on its original purpose of updating disclosure requirements for accounting policies and clarifying definitions of accounting estimates. While it amends multiple standards, these amendments are consequential to the core objective of implementing the IASB's February 2021 amendments. The scope has not expanded beyond financial reporting disclosures."},"complexity_factors":["Amendments span 5 separate standards/publications (AASB 7, 101, 108, 134, and Practice Statement 2)","Requires understanding of the 'materiality' concept which is inherently judgement-based and context-specific","Nested conditional logic in paragraphs 117A-117E determining when accounting policy information is material","Cross-references between amended standards (e.g., AASB 7 references AASB 101 paragraph 117)","Distinguishing between changes in accounting policies vs changes in accounting estimates requires careful factual analysis","Transition provisions differ slightly between standards (some permit early application separately, others require disclosure of early adoption)","Deletion of existing paragraphs (118, 119, 121 in AASB 101) requires readers to track what has been removed vs what remains"],"plain_english_summary":"This legislation narrows accounting policy disclosures under Australian Accounting Standards: entities must disclose only material (not merely “significant”) accounting policy information—i.e., items that could reasonably influence users’ decisions. It clarifies policy vs estimate changes, expects measurement info for financial instruments to be material, and updates interim reporting and guidance on applying materiality. It affects all entities preparing Australian financial statements and aims to cut boilerplate, focusing disclosures on what truly matters."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"The amendments align Australian standards with IASB February 2021 amendments and clarify disclosure and definitional treatment; they do not expand or narrow the set of entities subject to AASB requirements. The Standard applies to entities and financial statements per AASB 1057, for annual periods beginning on or after 1 January 2023 (with earlier application permitted) and legally commences 31 December 2022."},"complexity_factors":["Amendments span multiple primary standards and a Practice Statement (AASB 7, 101, 108, 134 and Practice Statement 2), increasing cross‑reference complexity.","Terminology shift from “significant” to “material” accounting policy information (AASB 101 paras 117, 117A–117E) increases reliance on qualitative judgement.","New and clarified definitions for accounting estimates and their development (AASB 108 paras 5, 32, 32A–32B, 34A) require technical application of measurement and valuation techniques.","Explicit inclusion of measurement techniques and inputs (AASB 108 para 32A) creates closer interaction with fair‑value and impairment standards (e.g. AASB 13, AASB 9).","Removal of earlier illustrative guidance (deletions of paras 118, 119 and 121 in AASB 101) changes how preparers justify disclosure decisions.","Added Practice Statement guidance (paras 88A–88G) requires organisations to apply materiality assessment processes to policy disclosures, producing potential entity‑specific variation.","Transitional and effective‑date rules (application from annual periods beginning on or after 1 Jan 2023; commencement 31 Dec 2022; transitional paragraphs 139V, 54I) create implementation timing and disclosure requirements.","Practical compliance burden: preparers must identify, document and defend which policy information is material (AASB 101 para 117C) and avoid immaterial disclosures that obscure material ones (para 117D).","Audit and comparability risk from increased judgement and potential diversity in entity‑specific policy disclosures."],"plain_english_summary":"This instrument amends AASB 7, 101, 108, 134 and AASB Practice Statement 2 to require disclosure of material accounting policy information (replacing the former term “significant”), clarify the definition and measurement of accounting estimates, and require disclosure of measurement bases for financial instruments. It applies to entities preparing Australian financial statements (annual periods from 1 January 2023) and matters because preparers and auditors must exercise more judgement about which policy details are material, adjust note content and presentation, and manage transitional and compliance costs."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/accounting-standard-aasb-2021-2-amendments-to-australian-accounting-standards-disclosure-of-accounti","history":"/api/acts/accounting-standard-aasb-2021-2-amendments-to-australian-accounting-standards-disclosure-of-accounti/history","analysis":"/api/acts/accounting-standard-aasb-2021-2-amendments-to-australian-accounting-standards-disclosure-of-accounti/analysis","conflicts":"/api/acts/accounting-standard-aasb-2021-2-amendments-to-australian-accounting-standards-disclosure-of-accounti/conflicts","importantCases":"/api/acts/accounting-standard-aasb-2021-2-amendments-to-australian-accounting-standards-disclosure-of-accounti/important-cases","documents":"/api/acts/accounting-standard-aasb-2021-2-amendments-to-australian-accounting-standards-disclosure-of-accounti/documents"}}