Accounting Standard AASB 2022-2 Amendments to Australian Accounting Standards – Extending Transition Relief under AASB 1 (Cth)

AASB Standard AASB 2022-2 May 2022

Amendments to Australian Accounting Standards – Extending Transition Relief under AASB 1 [AASB 1 & AASB 1053]

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ISSN 1036-4803

Contents

PREFACE ACCOUNTING STANDARD AASB 2022-2 Amendments to Australian Accounting Standards – Extending Transition Relief under AASB 1

from paragraph OBJECTIVE 1 APPLICATION 2 AMENDMENTS TO AASB 1 5 AMENDMENTS TO AASB 1053 6 COMMENCEMENT OF THE LEGISLATIVE INSTRUMENT 7

BASIS FOR CONCLUSIONS

Australian Accounting Standard AASB 2022-2 Amendments to Australian Accounting Standards – Extending Transition Relief under AASB 1 is set out in paragraphs 1 – 7. All the paragraphs have equal authority.

Preface

Standards amended by AASB 2022-2 This Standard makes amendments to AASB 1 First-time Adoption of Australian Accounting Standards (July 2015) and AASB 1053 Application of Tiers of Australian Accounting Standards (June 2010).

Main features of this Standard

Main requirements This Standard amends: (a) AASB 1 – to allow: (i) a subsidiary preparing general purpose financial statements for the first time to apply the optional exemption in paragraph D16(a) and measure its assets and liabilities at the carrying amounts that would be included in the parent's consolidated financial statements where the parent has already adopted either Australian Accounting Standards or International Financial Reporting Standards (IFRS Standards or IFRSs); and (ii) an entity that becomes a first-time adopter of Australian Accounting Standards in its consolidated financial statements later than its subsidiary (or associate or joint venture) to use the amounts included in the subsidiary's (or associate's or joint venture's) separate financial statements where the subsidiary (or associate or joint venture) has already adopted either Australian Accounting Standards or IFRSs; and (b) AASB 1053 – to allow for-profit private sector entities transitioning from unconsolidated Tier 2 – Reduced Disclosure Requirements general purpose financial statements to consolidated Tier 2 – Simplified Disclosures general purpose financial statements to apply AASB 1 when preparing consolidated financial statements for the first time.