AASB Exposure Draft ED 334 Limiting the Ability of Not-for-Profit Entities to Prepare Special Purpose Financial Statements |
Introduction
The Australian Accounting Standards Board is seeking your input into an exposure draft.
The AASB has published Exposure Draft ED 334 Limiting the Ability of Not-for-Profit Entities to Prepare Special Purpose Financial Statements proposing to remove the ability of certain not-for-profit entities* to prepare special purpose financial statements.
This Exposure Draft proposes to:
(a) extend the applicability of the Conceptual Framework for Financial Reporting from for-profit private sector entities to include also private sector and public sector not-for-profit entities (with some exceptions). The proposals are expected to bring a majority of Australian entities under the aegis of the same conceptual framework documents for guiding and developing accounting policies. As a result, more not-for-profit entities will be required to prepare general purpose financial statements when financial statements are prepared in accordance with a directive that they comply with Australian Accounting Standards;
(b) make consequential amendments to various Australian Accounting Standards and Practice Statement 2 Making Materiality Judgements as a result of the proposals to extend the scope of the Conceptual Framework and Australian Accounting Standards noted above; and
(c) amend AASB 1054 Australian Additional Disclosures to require not-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 to make certain disclosures in their special purpose financial statements, where prepared.
The proposals exposed in this Exposure Draft should be considered in conjunction with the proposals in AASB Exposure Draft ED 335 General Purpose Financial Statements – Not-for-Profit Private Sector Tier 3 Entities. ED 335 also results from the Board’s review of the Australian financial reporting framework for not-for-profit private sector entities. In the main, ED 335 proposes introducing a further reporting tier of general purpose financial statements in recognition of the demographic of certain not-for-profit private sector entities impacted by the proposals in this Exposure Draft.
This survey aims to provide stakeholders with a streamlined approach to providing feedback on ED 334. If you prefer not to submit a comment letter to the AASB, please consider completing this survey.
AASB staff have also prepared a key facts document that provides a high-level overview of the Exposure Draft. This document is suggested for reading before completing the survey.
Stakeholders are invited to complete this survey by 11:59pm, 28 February 2025 AEDT.
It will take approximately 30 minutes to complete all questions. However, not all questions are required to be answered. Responses to the survey can be amended before submission on the same device until 11:59pm, 28 February 2025 AEDT.
Stakeholder feedback plays an important role in any decisions made by the AASB. The AASB regards supportive and non-supportive comments as essential to a balanced review of issues and will consider all submissions made by the abovementioned deadline.
The AASB has published Exposure Draft ED 334 Limiting the Ability of Not-for-Profit Entities to Prepare Special Purpose Financial Statements proposing to remove the ability of certain not-for-profit entities* to prepare special purpose financial statements.
This Exposure Draft proposes to:
(a) extend the applicability of the Conceptual Framework for Financial Reporting from for-profit private sector entities to include also private sector and public sector not-for-profit entities (with some exceptions). The proposals are expected to bring a majority of Australian entities under the aegis of the same conceptual framework documents for guiding and developing accounting policies. As a result, more not-for-profit entities will be required to prepare general purpose financial statements when financial statements are prepared in accordance with a directive that they comply with Australian Accounting Standards;
(b) make consequential amendments to various Australian Accounting Standards and Practice Statement 2 Making Materiality Judgements as a result of the proposals to extend the scope of the Conceptual Framework and Australian Accounting Standards noted above; and
(c) amend AASB 1054 Australian Additional Disclosures to require not-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 to make certain disclosures in their special purpose financial statements, where prepared.
The proposals exposed in this Exposure Draft should be considered in conjunction with the proposals in AASB Exposure Draft ED 335 General Purpose Financial Statements – Not-for-Profit Private Sector Tier 3 Entities. ED 335 also results from the Board’s review of the Australian financial reporting framework for not-for-profit private sector entities. In the main, ED 335 proposes introducing a further reporting tier of general purpose financial statements in recognition of the demographic of certain not-for-profit private sector entities impacted by the proposals in this Exposure Draft.
This survey aims to provide stakeholders with a streamlined approach to providing feedback on ED 334. If you prefer not to submit a comment letter to the AASB, please consider completing this survey.
AASB staff have also prepared a key facts document that provides a high-level overview of the Exposure Draft. This document is suggested for reading before completing the survey.
Stakeholders are invited to complete this survey by 11:59pm, 28 February 2025 AEDT.
It will take approximately 30 minutes to complete all questions. However, not all questions are required to be answered. Responses to the survey can be amended before submission on the same device until 11:59pm, 28 February 2025 AEDT.
Stakeholder feedback plays an important role in any decisions made by the AASB. The AASB regards supportive and non-supportive comments as essential to a balanced review of issues and will consider all submissions made by the abovementioned deadline.