Main features of this StandardMain features of this Standard

Main features of this Standard

Main requirements

This Standard amends AASB 1054 and AASB 1057 in relation to for-profit private sector entities that are required only by their constituting document or another document (being a document created before 1 July 2021 and not amended on or after that date) to prepare financial statements that comply with Australian Accounting Standards. The amendments require that when such entities prepare special purpose financial statements that refer to Australian Accounting Standards, the financial statements include disclosures that inform users of the basis upon which those financial statements were prepared.

In particular, the amendments made to AASB 1054 by this Standard require the special purpose financial statements to:

(a) disclose the basis on which the decision to prepare special purpose financial statements was made;

(b) disclose information about the material accounting policies applied in the special purpose financial statements, including information about changes in those policies;

(c) where the entity has interests in other entities – disclose whether or not its subsidiaries and investments in associates or joint ventures have been consolidated or equity accounted in a manner consistent with the requirements set out in AASB 10 Consolidated Financial Statements or AASB 128 Investments in Associates and Joint Ventures, as appropriate. If the entity has not consolidated its subsidiaries or equity accounted its investments in associates or joint ventures consistently with those requirements, also disclose the reasons why;

(d) for each material accounting policy applied and disclosed in the financial statements that does not comply with all the recognition and measurement requirements in Australian Accounting Standards (except for AASB 10 and AASB 128) – disclose an indication of how it does not comply;

(e) disclose whether or not the financial statements overall comply with all the recognition and measurement requirements in Australian Accounting Standards (except for AASB 10 and AASB 128); and

(f) comply with the disclosure requirements in paragraphs 8 and 9 of AASB 1054 regarding the reporting framework and the type of financial statements.

The amendments to AASB 1057 ensure that the for-profit private sector entities addressed in this Standard are made subject to Australian Accounting Standards – explicitly only AASB 1054 (in addition to AASB 1057) – so that the relevant disclosure requirements in AASB 1054 are applicable to their special purpose financial statements that are required to comply with the Standards.

Application date

This Standard applies to annual periods ending on or after 30 June 2022. Earlier application is permitted.