3This Standard applies to annual reporting periods beginning on or after 1 July 2013.

3 This Standard applies to annual reporting periods beginning on or after 1 July 2013. \[Note: For application dates of paragraphs changed or added by an amending Standard, see Compilation Details.\] 4 This Standard may be applied to annual reporting periods beginning on or after 1 July 2009 but before 1 July 2013. When an entity applies this Standard to such an annual reporting period it shall disclose that fact. 5 When an entity elects to early adopt this Standard for an annual reporting period beginning on or after 1 July 2009 but before 1 July 2013 and prepares Tier 2 general purpose financial statements, it shall also adopt the relevant Standards that specify Tier 2 reporting requirements. 6 \[Deleted by the AASB\] Tiers of Reporting Requirements 7 Australian Accounting Standards consist of two Tiers of reporting requirements for preparing general purpose financial statements: (a) Tier 1: Australian Accounting Standards; and (b) Tier 2: Australian Accounting Standards – Simplified Disclosures. 8 Tier 1 incorporates International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) and include requirements that are specific to Australian entities. 9 Tier 2 comprises the recognition and measurement requirements of Tier 1 (including consolidation and the equity method of accounting) but substantially reduced disclosure requirements. Except for the presentation of a third statement of financial position under Tier 1[\[1\]](#_ftn1) and the option of not presenting a statement of changes in equity[\[2\]](#_ftn2), the presentation requirements under Tier 1 and Tier 2 are the same. Tier 2 disclosure requirements are set out in AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities. 10 Each Australian Accounting Standard specifies the entities to which it applies and, where necessary, sets out disclosure requirements from which Tier 2 entities are exempt. Application of Australian Accounting Standards under the Differential Reporting Framework Application of Tier 1 Reporting Requirements 11 The following types of entities shall prepare general purpose financial statements that comply with Tier 1 reporting requirements: (a) for-profit private sector entities that have public accountability and are required by legislation to prepare financial statements that comply with either Australian Accounting Standards or accounting standards; and (b) the Australian Government and State, Territory and Local Governments. 12 Subject to AASB 1049, GGSs of the Australian Government and State and Territory Governments shall apply Tier 1 reporting requirements. Application of Tier 2 Reporting Requirements 13 Tier 2 reporting requirements shall, as a minimum, apply to the general purpose financial statements of the following types of entities: (a) for-profit private sector entities that do not have public accountability; (b) not-for-profit private sector entities; and (c) public sector entities, whether for-profit or not-for-profit, other than the Australian Government and State, Territory and Local Governments. These types of entities may elect to apply Tier 1 reporting requirements in preparing general purpose financial statements.