Finalisation of ED 328 proposalsFinalisation of ED 328 proposals

Finalisation of ED 328 proposals

1. Following the consultation period and after considering the comments received, the Board decided to proceed with issuing this Standard, with minimal changes from the proposals in ED 328. The Board noted the disclosures would need to be made only where material to the entity.

Feedback from respondents on ED 328 and international alignment

1. The Board received one formal comment letter on ED 328. The feedback received indicated that, in general, the stakeholder was supportive of the proposals. However, the stakeholder provided additional feedback.
2. The stakeholder suggested that the disclosure objective in proposed paragraph 119A in ED 328 was unnecessary. The stakeholder observed that the IASB has not generally included disclosure objectives in the IFRS for SMEs Accounting Standard and, therefore, the Board generally has also not previously included disclosure objectives in AASB 1060. It also observed that not including disclosure objectives is consistent with the approach proposed by the IASB in its Subsidiaries without Public Accountability: Disclosures project.
3. The Board noted that the IASB has tentatively decided not to include the disclosure objective in its proposed amendments to add supplier finance arrangement disclosures to the IFRS for SMEs Accounting Standard.
4. The Board considered this feedback and decided that, for consistency with the IASB’s tentative approach, it would not add the disclosure objective proposed in ED 328 to this Standard. As AASB 1060 was developed based on the requirements in the IFRS for SMEs Accounting Standard, the Board considered that following the IASB’s tentative approach was appropriate. However, the Board noted its intention to monitor future IASB decisions about supplier finance arrangement disclosures in the IFRS for SMEs Accounting Standard and consider whether further amendments are required to AASB 1060 at that time.
5. In considering the IASB’s tentative approach and proposed amendments to the IFRS for SMEs Accounting Standard and the forthcoming Subsidiaries without Public Accountability: Disclosures Standard, the Board observed that the IASB is not proposing to include:
   1. transition relief in the IFRS for SMEs Accounting Standard. The IASB does not consider transition relief necessary as it expects to issue the amendments at least two years before their application date. (The IASB has not yet considered whether transition relief may be required in the Subsidiaries without Public Accountability: Disclosures Standard.) The Board, however, considered that it is necessary to add transition relief to AASB 1060 given the short time frame between the issue of these amendments and their application date. Consequently, the transition reliefs proposed in ED 328 are included in paragraph 119C of this Standard; and