Some relief is finally on its way! The Australian Accounting Standards Board (AASB) recently issued two standards that will reduce the disclosure requirements for certain entities preparing “general purpose financial statements” (financial statements that comply with all Australian Accounting Standards).
The overall aim is to move all entities towards the preparation of general purpose financial reports in order to increase consistency and transparency whilst maintaining the relevance of these reports by reducing unnecessary disclosures.
An entity’s ability to take advantage of reduced disclosure requirements depends upon the tier it belongs to within the standards.
The two new standards issued are:
AASB 1053: Application of Tiers of Australian Accounting Standards and
AASB 2010-2: Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements.