2A This Statement does not apply in relation to reporting periods beginning on or after 1 January 2020 July 2021 to:
(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) 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; and

(c) other for-profit entities (private sector or public sector) that elect to prepare general purpose financial statements apply the consequential amendments to other pronouncements set out in AASB 2019‑1 Amendments to Australian Accounting Standards – References to the Conceptual Framework.

2B If an entity identified in paragraph 2A elects to apply the Conceptual Framework for Financial Reporting to an annual reporting period prior to its mandatory application for the entity beginning before 1 January 2020, the entity shall not apply this Statement to that period.

Amendments to AASB 1 Amendments to AASB 1

Amendments to AASB 1

Paragraph Aus12.1 is added.

Aus12.1 Entities that elect to apply AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities to periods beginning before 1 July 2021 (ie early application) may also elect to apply the short-term exemptions from restating comparative information set out in AASB 1053 Application of Tiers of Australian Accounting Standards Appendix E, where applicable. For entities that apply that relief, references to the ‘date of transition to Australian Accounting Standards’ in this Standard shall mean the beginning of the first Australian-Accounting-Standards reporting period.

Amendments to AASB 10 Amendments to AASB 10

Amendments to AASB 10

Paragraph Aus4.2 is amended.

Scope Scope

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Aus4.2 Notwithstanding paragraphs 4(a) and Aus4.1, the ultimate Australian parent shall present consolidated financial statements that consolidate its investments in subsidiaries in accordance with this Standard when the ultimate Australian parent is required by legislation to prepare financial statements that comply with either Australian Accounting Standards or accounting standards, except if the ultimate Australian parent is required, in accordance with paragraph 31 of this Standard, to measure all of its subsidiaries at fair value through profit or loss.

Amendments to AASB 1048 Amendments to AASB 1048

Amendments to AASB 1048

Paragraphs 10 and AusCF10 are amended.

Conceptual framework Conceptual framework

Conceptual framework

10 Each reference to the Conceptual Framework for Financial Reporting (or Conceptual Framework) in other Australian Accounting Standards (including Interpretations) is taken to be a reference to the relevant pronouncement listed in Table 3 below. Each row in Table 3 is to be treated as a separate provision of this Standard.

AusCF10 Notwithstanding paragraph 10, in respect of AusCF entities, each reference to the Framework for the Preparation and Presentation of Financial Statements (or Framework) in other Australian Accounting Standards (including Interpretations) is taken to be a reference to the relevant pronouncement listed in Table 3 below. Each row in Table 3 is to be treated as a separate provision of this Standard.

Amendments to AASB 1053 Amendments to AASB 1053

Amendments to AASB 1053

Paragraph 2 is deleted. Paragraphs 11, 18A and 18B are amended. Paragraph 18D is added.

Application Application

2 \[Deleted by the AASB\] This Standard applies to1:
(b) general purpose financial statements of each reporting entity;
(d) financial statements of General Government Sectors (GGSs) prepared in accordance with AASB 1049 Whole of Government and General Government Sector Financial Reporting; and
(e) for-profit private sector entities that have public accountability and are required by legislation to comply with Australian Accounting Standards.
1 This application paragraph does not amend the application paragraphs of other Standards that are restricted to reporting entities.
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Application of Tier 1 Reporting Requirem Application of Tier 1 Reporting Requirements

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.

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First-time Adoption of Australian Accoun First-time Adoption of Australian Accounting Standards

First-time Adoption of Australian Accounting Standards

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18A When applying Tier 2 reporting requirements for the first time, an entity that prepared its most recent previous financial statements in the form of special purpose financial statements:
(a) without applying, or only selectively applying, applicable recognition and measurement requirements of Australian Accounting Standards, including, if a parent entity, without presenting consolidated financial statements prepared in accordance with AASB 10 Consolidated Financial Statements (unless exempt), shall apply either:
(ii) Tier 2 reporting requirements directly using the requirements in AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors; and
(b) without presenting consolidated financial statements, on the basis that neither the parent nor the group was a reporting entity (as defined in AASB 1057), shall apply either:
(ii) Tier 2 reporting requirements directly using the requirements in AASB 108; and
(bc) applying all applicable recognition and measurement requirements of Australian Accounting Standards, including, if a parent entity, presenting consolidated financial statements prepared in accordance with AASB 10 (unless exempt), shall not apply AASB 1.
18B An entity applying paragraph 18A(bc) continues applying the applicable recognition and measurement requirements of Australian Accounting Standards, whether it had previously initially applied recognition and measurement requirements consistent with AASB 1 or a predecessor to AASB 108, whichever was applicable at the time.
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18D Paragraph 18A(a) addresses where an entity has not applied, or only selectively applied, applicable recognition and measurement requirements, rather than whether the entity had made an explicit and unreserved statement of compliance with such requirements. As such, if an entity becomes aware it had claimed compliance with applicable recognition and measurement requirements of Australian Accounting Standards in error in its most recent previous special purpose financial statements, the entity applies paragraph 18A(a).

In Appendix C, Chart 1: First-time Adoption of Tier 1 or Tier 2 Reporting Requirements (paragraphs 18−18B) is replaced with the following.

Chart 1: First-time Adoption of Tier 1 or Tier 2 Reporting Requirements (paragraphs 18−18D)
![Chart 1: First-time Adoption of Tier 1 or Tier 2 Reporting Requirements (paragraphs 18−18D)](image.002.png)

View image in the official source

Appendix E is added.

Appendix E

Short-term exemptions for entities applying Tier 2 – Simplified Disclosures for periods beginning before 1 July 2022

This appendix is an integral part of AASB 1053

E1 This appendix sets out optional short-term exemptions for for-profit private sector entities applying AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities to periods beginning before 1 July 2022, as follows:

(a) relief from distinguishing the correction of errors and changes in accounting policy, for periods beginning before 1 July 2022 (see paragraph E3);

(b) relief from providing comparative information not previously disclosed in the notes, for periods beginning before 1 July 2021 (see paragraph E4); and

(c) relief from restating comparative information, for periods beginning before 1 July 2021 (see paragraphs E5–E7).

E2 If an entity applies one or more of the exemptions set out in this appendix, it shall disclose that fact.

Relief from distinguishing the correction of errors and changes in accounting policy

E3 For periods beginning before 1 July 2022, notwithstanding AASB 1060 paragraph 211 (for entities applying AASB 1 First-time Adoption of Australian Accounting Standards to the period) and AASB 1060 paragraph 110 (for entities applying AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors instead of AASB 1), an entity applying paragraph 18A(a) or (b) need not distinguish the correction of errors and changes in accounting policies if the entity becomes aware of errors made in its most recent previous special purpose financial statements.

Relief from presenting comparative information not previously disclosed in the notes

E4 Notwithstanding AASB 1060 paragraph 20, entities that elect to apply AASB 1060 to periods beginning before 1 July 2021 (ie early application) need not present comparative information in the notes if the entity did not disclose the comparable information in its most recent previous financial statements.

Relief from restating comparative information for certain for-profit private sector entities

E5 Paragraphs E6–E7 apply to a for-profit private sector entity that elects to apply AASB 1060 to periods beginning before 1 July 2021 (ie early application) and also applies AASB 1 in preparing its first Australian-Accounting-Standards financial statements (Tier 2) for the period.

E6 Notwithstanding AASB 1 paragraph 7, comparative information need not be restated in the entity’s first Australian-Accounting-Standards financial statements (Tier 2). Under this approach, references to the ‘date of transition to Australian Accounting Standards’ in AASB 1 shall mean the beginning of the first Australian-Accounting-Standards reporting period. Consequently, consistent with AASB 1 paragraph 11, the entity shall recognise adjustments arising from any differences between the carrying amounts in its previous special purpose financial statements and its opening carrying amounts based on the retrospective application of Australian Accounting Standards directly in retained earnings (or, if appropriate, another category of equity) at the beginning of the first Australian-Accounting-Standards reporting period.

E7 An entity that elects to not restate comparative information in its first Australian-Accounting-Standards financial statements (Tier 2) in accordance with paragraph E6 need not provide the reconciliations required by AASB 1060 paragraphs 210(b) and (c). The entity shall:

(a) present two statements of financial position, two statements of profit or loss and other comprehensive income, two separate statements of profit or loss (if presented), two statements of cash flows and two statements of changes in equity and related notes, as follows:

(i) the statements and related notes as at the end of the first Australian-Accounting-Standards reporting period, compliant with Australian Accounting Standards; and

(ii) the statements and related notes presented in its most recent previous special purpose financial statements (not necessarily compliant with Australian Accounting Standards);

(b) disclose a reconciliation of its equity presented in its most recent previous special purpose financial statements to its equity determined in accordance with Australian Accounting Standards – Simplified Disclosures at the date of transition to Australian Accounting Standards – Simplified Disclosures;

(c) disclose a description of the main adjustments that would have been required to make the comparative statement of profit or loss and other comprehensive income and separate statement of profit or loss (if presented) compliant with Australian Accounting Standards. The entity need not quantify those adjustments; and

(d) prominently label the comparative information that is not compliant with Australian Accounting Standards as such.

Amendments to AASB 1057 Amendments to AASB 1057

Amendments to AASB 1057

Paragraphs 2, 5, 6–7, 9, 10, 12, 18, 20, 22–24 and 26 and the Appendix are amended. Paragraph 8 is deleted.

Application of this Standard Application of this Standard

Application of this Standard

2 This Standard applies to:
(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; and
(e) 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
(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.
\* References in this Standard to ‘legislation’ mean legislation of a government in Australia.

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Application of Australian Accounting Sta Application of Australian Accounting Standards

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;
(c) each entity that elects to prepare financial statements that are, or are held out to be, general purpose financial statements; and
(d) 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
(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.
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6 AASB 8 Operating Segments and AASB 120 Accounting for Government Grants and Disclosure of Government Assistance applies to apply as set out in paragraph 5, provided the entity is a for-profit entity.
(a) each 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;
(c) financial statements of a for-profit entity that are, or are held out to be, general purpose financial statements; and
(d) for-profit private sector entities that have public accountability and are required by legislation to comply with Australian Accounting Standards.

6A AASB 17 Insurance Contracts applies as set out in paragraph 5,
(a) each 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 reporting entity; and
except when the entity is:
(da) a superannuation entity applying AASB 1056; or
(eb) a not-for-profit public sector entity.
7 AASB 101 Presentation of Financial Statements, AASB 107 Statement of Cash Flows, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, AASB 1048 Interpretation of Standards and AASB 1054 Australian Additional Disclosures 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; and
(d) 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
(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 \[Deleted by the AASB\] AASB 120 Accounting for Government Grants and Disclosure of Government Assistance applies to:
(a) each 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;
(c) financial statements of a for-profit entity that are, or are held out to be, general purpose financial statements; and
(d) for-profit private sector entities that have public accountability and are required by legislation to comply with Australian Accounting Standards.

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 have public accountability and 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 other not-for-profit entity that is a reporting entity; and
(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.

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12 AASB 1038 Life Insurance Contracts applies to:
(a) a life insurer; or
(b) the parent in a group that includes a life insurer;

when the entity is a not-for-profit public sector entity that:

(c) is a reporting entity and prepares general purpose financial statements; or
(d) prepares financial statements that are, or are held out to be, general purpose financial statements; or.
(f) is a for-profit private sector entity that has public accountability and is required by legislation to comply with Australian Accounting Standards.

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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; and
(e) 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
(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.

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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 of a superannuation entity that are held out to be general purpose financial statements; and
(c) for-profit private sector superannuation 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
(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.

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Application of Australian Interpretation Application of Australian Interpretations

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 Corporations Act and 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; and
(d) 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
(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 to: as set out in paragraph 22, provided the entity is a for-profit entity.
(a) each 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;
(c) financial statements of a for-profit entity that are, or are held out to be, general purpose financial statements; and
(d) for-profit private sector entities that have public accountability and are required by legislation to comply with Australian Accounting Standards.