AASB 1057 - Application of Australian Accounting Standards - July 2015
In ForceCTH
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Commonwealth
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legislative instrument
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This instrument re‑sets which entities must apply Australian Accounting Standards, narrows scope to specified for‑profit private sector entities (and entities bound by constituting documents created or amended on/after 1 July 2021), excludes most not‑for‑profit and public sector entities from this phase, and introduces a two‑phase reform with a Simplified Disclosures Tier (AASB 1060) while keeping full recognition and measurement rules. Affected entities face new consolidation, disclosure and transition requirements; regulators retain discretion over "true and fair" legislative references and entities can elect early adoption with limited relief.
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Current sections
Direct links to the current provisions in AASB 1057 - Application of Australian Accounting Standards - July 2015.
15
2
This Standard applies to:
2 This Standard applies to:
(a) each entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act;
(b) general purpose financial statements of each not-for-profit reporting entity;
(c) each entity that elects to prepare financial statements that are, or are held out to be, general purpose financial statements;
(d) financial statements of General Government Sectors (GGSs) prepared in accordance with AASB 1049 Whole of Government and General Government Sector Financial Reporting;
(e) for-profit private sector entities that are required by legislation[](#_ftn1) to prepare financial statements that comply with either Australian Accounting Standards or accounting standards; and
(f) other for-profit private sector entities that are required only by their constituting document or another document to prepare financial statements that comply with Australian Accounting Standards.
3 This Standard applies to annual periods beginning on or after 1 January 2016.
4 This Standard may be applied to annual periods beginning before 1 January 2016.
5 Unless specified otherwise in paragraphs 5A–21, Australian Accounting Standards apply to:
(a) each not-for-profit entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act and that is a reporting entity;
(b) general purpose financial statements of each other not-for-profit entity that is a reporting entity;
(c) each entity that elects to prepare financial statements that are, or are held out to be, general purpose financial statements;
(d) for-profit private sector entities that are required by legislation to prepare financial statements that comply with either Australian Accounting Standards or accounting standards; and
(e) other for-profit private sector entities that are required only by their constituting document or another document to prepare financial statements that comply with Australian Accounting Standards, provided that the relevant document was created or amended on or after 1 July 2021.
5A
AASB 4 Insurance Contracts applies to:
5A AASB 4 Insurance Contracts applies to:
(a) general purpose financial statements of each public sector reporting entity; and
(b) financial statements of each public sector entity that are, or are held out to be, general purpose financial statements;
in respect of annual periods beginning before 1 July 2026. However, a public sector entity may elect to apply AASB 17 Insurance Contracts instead of AASB 4.
6 AASB 8 Operating Segments and AASB 120 Accounting for Government Grants and Disclosure of Government Assistance apply as set out in paragraph 5, provided the entity is a for-profit entity.
6A
AASB 17 Insurance Contracts applies as set out in paragraph 5, except when the entity is:
6A AASB 17 Insurance Contracts applies as set out in paragraph 5, except when the entity is:
(a) a superannuation entity applying AASB 1056; or
(b) a public sector entity.
However, a public sector entity may elect to apply AASB 17 instead of both AASB 4 and AASB 1023 General Insurance Contracts.
7 Except as specified in paragraph 20C, AASB 101 Presentation of Financial Statements, AASB 107 Statement of Cash Flows, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors and AASB 1048 Interpretation of Standards apply to:
(a) each not-for-profit entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act;
(c) each entity that elects to prepare financial statements that are, or are held out to be, general purpose financial statements;
(d) for-profit private sector entities that are required by legislation to prepare financial statements that comply with either Australian Accounting Standards or accounting standards; and
(e) other for-profit private sector entities that are required only by their constituting document or another document to prepare financial statements that comply with Australian Accounting Standards, provided that the relevant document was created or amended on or after 1 July 2021.
8 [Deleted by the AASB]
9
AASB 133 Earnings per Share applies to:
9 AASB 133 Earnings per Share applies to:
(a) each not-for-profit entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act and that is a reporting entity or discloses earnings per share; and
(b) for-profit private sector entities that are required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act or disclose earnings per share.
10
AASB 134 Interim Financial Reporting applies to:
10 AASB 134 Interim Financial Reporting applies to:
(a) each disclosing entity required to prepare half-year financial reports in accordance with Part 2M.3 of the Corporations Act;
(b) interim financial reports that are general purpose financial statements of each not-for-profit entity that is a reporting entity;
(c) each entity that elects to prepare interim financial reports that are, or are held out to be, general purpose financial statements;
(d) interim financial reports of for-profit private sector entities that are required by legislation to prepare financial statements that comply with either Australian Accounting Standards or accounting standards; and
(e) interim financial reports of other for-profit private sector entities that are required only by their constituting document or another document to prepare financial statements that comply with Australian Accounting Standards, provided that the relevant document was created or amended on or after 1 July 2021.
11 AASB 1004 Contributions applies to general purpose financial statements of local governments, government departments, other government controlled not-for-profit entities and whole of governments.
11A
AASB 1023 General Insurance Contracts applies to:
11A AASB 1023 General Insurance Contracts applies to:
(a) general purpose financial statements of each public sector reporting entity; and
(b) financial statements of each public sector entity that are, or are held out to be, general purpose financial statements;
in respect of annual periods beginning before 1 July 2026. However, a public sector entity may elect to apply AASB 17 Insurance Contracts instead of AASB 1023.
12 \[Deleted\]
13 AASB 1039 Concise Financial Reports applies to a concise financial report prepared by an entity in accordance with paragraph 314(2)(a) in Part 2M.3 of the Corporations Act.
14 AASB 1049 applies to each government’s whole of government general purpose financial statements and GGS financial statements.
15
AASB 1050 Administered Items applies to general purpose financial statements of government departments.
15 AASB 1050 Administered Items applies to general purpose financial statements of government departments.
16 AASB 1051 Land Under Roads applies to general purpose financial statements of local governments, government departments and whole of governments, and financial statements of GGSs.
17 AASB 1052 Disaggregated Disclosures applies to general purpose financial statements of local governments and government departments.
18
AASB 1053 Application of Tiers of Australian Accounting Standards applies to:
18 AASB 1053 Application of Tiers of Australian Accounting Standards applies to:
(a) each not-for-profit entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act;
(c) each entity that elects to prepare financial statements that are, or are held out to be, general purpose financial statements;
(d) financial statements of GGSs prepared in accordance with AASB 1049;
(e) for-profit private sector entities that are required by legislation to prepare financial statements that comply with either Australian Accounting Standards or accounting standards; and
(f) other for-profit private sector entities that are required only by their constituting document or another document to prepare financial statements that comply with Australian Accounting Standards, provided that the relevant document was created or amended on or after 1 July 2021.
18A
AASB 1054 Australian Additional Disclosures applies to:
18A AASB 1054 Australian Additional Disclosures applies to:
(a) each not-for-profit entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act;
(c) each entity that elects to prepare financial statements that are, or are held out to be, general purpose financial statements;
(d) for-profit private sector entities that are required by legislation to prepare financial statements that comply with either Australian Accounting Standards or accounting standards; and
(e) other for-profit private sector entities that are required only by their constituting document or another document to prepare financial statements that comply with Australian Accounting Standards.
19
AASB 1055 Budgetary Reporting applies to:
19 AASB 1055 Budgetary Reporting applies to:
(a) whole of government general purpose financial statements of each government;
(b) financial statements of each government’s GGS;
(c) general purpose financial statements of each not-for-profit reporting entity within the GGS; and
(d) financial statements of each not-for-profit entity within the GGS that are, or are held out to be, general purpose financial statements.
20
AASB 1056 Superannuation Entities applies to:
20 AASB 1056 Superannuation Entities applies to:
(a) general purpose financial statements of each not-for-profit superannuation entity that is a reporting entity;
(b) each superannuation entity that elects to prepare financial statements that are held out to be general purpose financial statements;
(c) for-profit private sector superannuation entities that are required by legislation to prepare financial statements that comply with either Australian Accounting Standards or accounting standards; and
(d) other for-profit private sector superannuation entities that are required only by their constituting document or another document to prepare financial statements that comply with Australian Accounting Standards, provided that the relevant document was created or amended on or after 1 July 2021.
20A
AASB 1058 Income of Not-for-Profit Entities applies to:
20A AASB 1058 Income of Not-for-Profit Entities applies to:
(a) each not-for-profit entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act and that is a reporting entity;
(b) general purpose financial statements of each other not-for-profit entity that is a reporting entity; and
(c) financial statements of a not-for-profit entity that are, or are held out to be, general purpose financial statements.
20B AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities applies as set out in paragraph 5, provided the entity is eligible to apply Tier 2 reporting requirements, as set out in AASB 1053, paragraph 13.
20C
Entities applying AASB 1060 are not required to apply the following Australian Accounting Standards:
20C Entities applying AASB 1060 are not required to apply the following Australian Accounting Standards:
(a) AASB 7 Financial Instruments: Disclosures;
(b) AASB 12 Disclosure of Interests in Other Entities;
(c) AASB 101 Presentation of Financial Statements;
(d) AASB 107 Statement of Cash Flows; and
(e) AASB 124 Related Party Disclosures.
21 \[Deleted\]
Application of Australian Interpretations
22
Unless specified otherwise in paragraphs 23–26, Interpretations apply to:
22 Unless specified otherwise in paragraphs 23–26, Interpretations apply to:
(a) each not-for-profit entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act and that is a reporting entity;
(b) general purpose financial statements of each other not-for-profit entity that is a reporting entity;
(c) each entity that elects to prepare financial statements that are, or are held out to be, general purpose financial statements;
(d) for-profit private sector entities that are required by legislation to prepare financial statements that comply with either Australian Accounting Standards or accounting standards, and
(e) other for-profit private sector entities that are required only by their constituting document or another document to prepare financial statements that comply with Australian Accounting Standards, provided that the relevant document was created or amended on or after 1 July 2021.
23 Interpretation 110 Government Assistance – No Specific Relation to Operating Activities applies as set out in paragraph 22, provided the entity is a for-profit entity.
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Source text: opening excerpt
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
1 AASB 1057 - Application of Australian Accounting Standards - July 2015
Compiled AASB Standard
AASB 1057
Application of Australian Accounting Standards
This compiled Standard applies to annual periods beginning on or after 1 January 2023 but before 1 July 2026. Earlier application is permitted for annual periods beginning before 1 January 2023. It incorporates relevant amendments made up to and including 15 December 2022.
Prepared on 6 February 2023 by the staff of the Australian Accounting Standards Board.
Compilation no. 7
Compilation date: 31 December 2022
Obtaining copies of Accounting Standards
Compiled versions of Standards, original Standards and amending Standards (see Compilation Details) are available on the AASB website: www.aasb.gov.au.
This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission. 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 should be addressed to The Managing Director, Australian Accounting Standards Board, PO Box 204, Collins Street West, Victoria 8007.
Contents
Accounting Standard
AASB 1057 Application of Australian Accounting Standards
Australian Accounting Standard AASB 1057 Application of Australian Accounting Standards (as amended) is set out in paragraphs 1 – 25 and the Appendix. All the paragraphs have equal authority. Paragraphs in bold type state the main principles. Terms defined in the Appendix are in italics the first time they appear in the Standard. AASB 1057 is to be read in the context of other Australian Accounting Standards, including AASB 1048 Interpretation of Standards, which identifies the Australian Accounting Interpretations. In the absence of explicit guidance, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies.
Accounting Standard AASB 1057
The Australian Accounting Standards Board made Accounting Standard AASB 1057 Application of Australian Accounting Standards under section 334 of the Corporations Act 2001 on 24 July 2015.
This compiled version of AASB 1057 applies to annual periods beginning on or after 1 January 2023 but before 1 July 2026. It incorporates relevant amendments contained in other AASB Standards made by the AASB up to and including 15 December 2022 (see Compilation Details).
Accounting Standard AASB 1057
Application of Australian Accounting Standards
Objective
1 The objective of this Standard is to specify the types of entities and financial statements to which Australian Accounting Standards (including Interpretations) apply. The term ‘Australian Accounting Standards’ refers to accounting standards (including Interpretations) made by the AASB. Each reference to an Interpretation refers to that Interpretation as identified in AASB 1048 Interpretation of Standards.
AusCF1 AusCF entities are:
(a) not-for-profit entities; and
(b) for-profit entities that are not applying the Conceptual Framework for Financial Reporting (as identified in AASB 1048 Interpretation of Standards).
For AusCF entities, the term ‘reporting entity’ is defined in this Standard and Statement of Accounting Concepts SAC 1 Definition of the Reporting Entity also applies. For-profit entities applying the Conceptual Framework for Financial Reporting are set out in paragraph Aus1.1 of the Conceptual Framework.
Application of this Standard
2 This Standard applies to:
(a) each entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act;
(b) general purpose financial statements of each not-for-profit reporting entity;
(c) each entity that elects to prepare financial statements that are, or are held out to be, general purpose financial statements;
(d) financial statements of General Government Sectors (GGSs) prepared in accordance with AASB 1049 Whole of Government and General Government Sector Financial Reporting;
(e) for-profit private sector entities that are required by legislation[](#_ftn1) to prepare financial statements that comply with either Australian Accounting Standards or accounting standards; and
(f) other for-profit private sector entities that are required only by their constituting document or another document to prepare financial statements that comply with Australian Accounting Standards.
3 This Standard applies to annual periods beginning on or after 1 January 2016.
4 This Standard may be applied to annual periods beginning before 1 January 2016.
Application of Australian Accounting Standards
5 Unless specified otherwise in paragraphs 5A–21, Australian Accounting Standards apply to:
(a) each not-for-profit entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act and that is a reporting entity;
(b) general purpose financial statements of each other not-for-profit entity that is a reporting entity;
(c) each entity that elects to prepare financial statements that are, or are held out to be, general purpose financial statements;
(d) for-profit private sector entities that are required by legislation to prepare financial statements that comply with either Australian Accounting Standards or accounting standards; and
(e) other for-profit private sector entities that are required only by their constituting document or another document to prepare financial statements that comply with Australian Accounting Standards, provided that the relevant document was created or amended on or after 1 July 2021.
5A AASB 4 Insurance Contracts applies to:
(a) general purpose financial statements of each public sector reporting entity; and
(b) financial statements of each public sector entity that are, or are held out to be, general purpose financial statements;
in respect of annual periods beginning before 1 July 2026. However, a public sector entity may elect to apply AASB 17 Insurance Contracts instead of AASB 4.
6 AASB 8 Operating Segments and AASB 120 Accounting for Government Grants and Disclosure of Government Assistance apply as set out in paragraph 5, provided the entity is a for-profit entity.
6A AASB 17 Insurance Contracts applies as set out in paragraph 5, except when the entity is:
(a) a superannuation entity applying AASB 1056; or
(b) a public sector entity.
However, a public sector entity may elect to apply AASB 17 instead of both AASB 4 and AASB 1023 General Insurance Contracts.
7 Except as specified in paragraph 20C, AASB 101 Presentation of Financial Statements, AASB 107 Statement of Cash Flows, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors and AASB 1048 Interpretation of Standards apply to:
(a) each not-for-profit entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act;
(b) general purpose financial statements of each not-for-profit entity that is a reporting entity;
(c) each entity that elects to prepare financial statements that are, or are held out to be, general purpose financial statements;
(d) for-profit private sector entities that are required by legislation to prepare financial statements that comply with either Australian Accounting Standards or accounting standards; and
(e) other for-profit private sector entities that are required only by their constituting document or another document to prepare financial statements that comply with Australian Accounting Standards, provided that the relevant document was created or amended on or after 1 July 2021.
8 [Deleted by the AASB]
9 AASB 133 Earnings per Share applies to:
(a) each not-for-profit entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act and that is a reporting entity or discloses earnings per share; and
(b) for-profit private sector entities that are required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act or disclose earnings per share.
10 AASB 134 Interim Financial Reporting applies to:
(a) each disclosing entity required to prepare half-year financial reports in accordance with Part 2M.3 of the Corporations Act;
(b) interim financial reports that are general purpose financial statements of each not-for-profit entity that is a reporting entity;
(c) each entity that elects to prepare interim financial reports that are, or are held out to be, general purpose financial statements;
(d) interim financial reports of for-profit private sector entities that are required by legislation to prepare financial statements that comply with either Australian Accounting Standards or accounting standards; and
(e) interim financial reports of other for-profit private sector entities that are required only by their constituting document or another document to prepare financial statements that comply with Australian Accounting Standards, provided that the relevant document was created or amended on or after 1 July 2021.
11 AASB 1004 Contributions applies to general purpose financial statements of local governments, government departments, other government controlled not-for-profit entities and whole of governments.
11A AASB 1023 General Insurance Contracts applies to:
(a) general purpose financial statements of each public sector reporting entity; and
(b) financial statements of each public sector entity that are, or are held out to be, general purpose financial statements;
in respect of annual periods beginning before 1 July 2026. However, a public sector entity may elect to apply AASB 17 Insurance Contracts instead of AASB 1023.
12 \[Deleted\]
13 AASB 1039 Concise Financial Reports applies to a concise financial report prepared by an entity in accordance with paragraph 314(2)(a) in Part 2M.3 of the Corporations Act.
14 AASB 1049 applies to each government’s whole of government general purpose financial statements and GGS financial statements.
15 AASB 1050 Administered Items applies to general purpose financial statements of government departments.
16 AASB 1051 Land Under Roads applies to general purpose financial statements of local governments, government departments and whole of governments, and financial statements of GGSs.
17 AASB 1052 Disaggregated Disclosures applies to general purpose financial statements of local governments and government departments.
18 AASB 1053 Application of Tiers of Australian Accounting Standards applies to:
(a) each not-for-profit entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act;
(b) general purpose financial statements of each not-for-profit entity that is a reporting entity;
(c) each entity that elects to prepare financial statements that are, or are held out to be, general purpose financial statements;
(d) financial statements of GGSs prepared in accordance with AASB 1049;
(e) for-profit private sector entities that are required by legislation to prepare financial statements that comply with either Australian Accounting Standards or accounting standards; and
(f) other for-profit private sector entities that are required only by their constituting document or another document to prepare financial statements that comply with Australian Accounting Standards, provided that the relevant document was created or amended on or after 1 July 2021.
18A AASB 1054 Australian Additional Disclosures applies to:
(a) each not-for-profit entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act;
(b) general purpose financial statements of each not-for-profit entity that is a reporting entity;
(c) each entity that elects to prepare financial statements that are, or are held out to be, general purpose financial statements;
(d) for-profit private sector entities that are required by legislation to prepare financial statements that comply with either Australian Accounting Standards or accounting standards; and
(e) other for-profit private sector entities that are required only by their constituting document or another document to prepare financial statements that comply with Australian Accounting Standards.
19 AASB 1055 Budgetary Reporting applies to:
(a) whole of government general purpose financial statements of each government;
(b) financial statements of each government’s GGS;
(c) general purpose financial statements of each not-for-profit reporting entity within the GGS; and
(d) financial statements of each not-for-profit entity within the GGS that are, or are held out to be, general purpose financial statements.
20 AASB 1056 Superannuation Entities applies to:
(a) general purpose financial statements of each not-for-profit superannuation entity that is a reporting entity;
(b) each superannuation entity that elects to prepare financial statements that are held out to be general purpose financial statements;
(c) for-profit private sector superannuation entities that are required by legislation to prepare financial statements that comply with either Australian Accounting Standards or accounting standards; and
(d) other for-profit private sector superannuation entities that are required only by their constituting document or another document to prepare financial statements that comply with Australian Accounting Standards, provided that the relevant document was created or amended on or after 1 July 2021.
20A AASB 1058 Income of Not-for-Profit Entities applies to:
(a) each not-for-profit entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act and that is a reporting entity;
(b) general purpose financial statements of each other not-for-profit entity that is a reporting entity; and
(c) financial statements of a not-for-profit entity that are, or are held out to be, general purpose financial statements.
20B AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities applies as set out in paragraph 5, provided the entity is eligible to apply Tier 2 reporting requirements, as set out in AASB 1053, paragraph 13.
20C Entities applying AASB 1060 are not required to apply the following Australian Accounting Standards:
(a) AASB 7 Financial Instruments: Disclosures;
(b) AASB 12 Disclosure of Interests in Other Entities;
(c) AASB 101 Presentation of Financial Statements;
(d) AASB 107 Statement of Cash Flows; and
(e) AASB 124 Related Party Disclosures.
21 \[Deleted\]
Application of Australian Interpretations
22 Unless specified otherwise in paragraphs 23–26, Interpretations apply to:
(a) each not-for-profit entity that is required to prepare financial reports in accordance with Part 2M.3 of the
This is an opening excerpt, not the complete document.