basis for conclusions

This Basis for Conclusions accompanies, but is not part of, AASB 101.

The Australian Accounting Standards Board’s reasons for deciding to have the same requirements as IAS 1 Presentation of Financial Statements in AASB 101 Presentation of Financial Statements in respect of for-profit entities are noted below.

The AASB concluded that, in order to obtain the full benefits of the Australian adoption of International Financial Reporting Standards, it is important that Australian Accounting Standards include the same requirements as IFRSs in respect of for-profit entities.

The AASB considers that any Australian differences from IFRSs have the potential to result in different outcomes from those that could be achieved under IFRSs.

In making its decision, the AASB noted that there are inevitably certain costs associated with the removal of Australian differences. For example, the level of comparability in financial reporting in Australia may be diminished by the removal of the encouragements to use certain financial statement formats that were outlined by the AASB in an Appendix to the previous version of this Standard. Nevertheless, the AASB is satisfied that the principle of having the same requirements as IFRSs for for-profit entities is in Australia’s best interest and that any associated costs will be exceeded by the potential benefits of consistency between Australian financial reporting requirements and financial reporting under IFRSs elsewhere in the world.