AASB 1 - First-time Adoption of Australian Accounting Standards - May 2009
Explanation of transition to Australian Explanation of transition to Australian Accounting Standards
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Explanation of transition to Australian Accounting Standards
23 An entity shall explain how the transition from previous GAAP to Australian Accounting Standards affected its reported financial position, financial performance and cash flows.
23A An entity that has applied Australian Accounting Standards or IFRSs in a previous period, as described in paragraph 4A, shall disclose:
(a) the reason it stopped applying Australian Accounting Standards or IFRSs; and
(b) the reason it is resuming or commencing the application of Australian Accounting Standards.
23B When an entity, in accordance with paragraph 4A, does not elect to apply AASB 1, the entity shall explain the reasons for electing to apply Australian Accounting Standards as if it had never stopped applying Australian Accounting Standards or IFRSs.