Introduction

The Australian Accounting Standards Board is seeking your input into a proposed new standard.

The AASB has published Exposure Draft ED 335 General Purpose Financial Statements – Not-for-Profit Private Sector Tier 3 Entities in conjunction with Exposure Draft ED 334 Limiting the Ability of Not-for-Profit Entities to Prepare Special Purpose Financial Statements proposing to:


(a) reduce the reporting burden on smaller not-for-profit (NFP) private sector entities where the existing Tier 1 and Tier 2 reporting requirements for preparing general purpose financial statements (GPFS) may be overly complex for application;

(b) remain consistent with other Government red tape reduction initiatives to lessen the financial reporting burden for entities; and

(c) provide Tier 3 financial reporting requirements for those NFP entities* that would be prohibited from preparing special purpose financial statements (SPFS) under the AASB’s proposals that would appropriately balance the needs of financial statement users and the costs of moving from SPFS to GPFS.

The proposals have been developed for application by smaller NFP private sector entities that do not have public accountability** and are not prohibited from applying Tier 3 reporting requirements by legislation, a constituting document or another document, and that are:

(a) required by legislation to prepare financial statements that comply with either Australian Accounting Standards (AAS) or accounting standards; or

(b) required by their constituting document or another document to prepare financial statements that comply with AAS; or

(c) electing to prepare GPFS.

This survey aims to provide stakeholders with a streamlined approach to providing feedback on ED 335. If you prefer not to submit a comment letter to the AASB, please consider completing this survey.

AASB staff have prepared two documents to aid in understanding ED 335. The first is a summary document that provides an overview of the proposals and the extent of simplifications compared to Tier 2 requirements. The second is a key facts document that offers a high-level overview of the ED. It is recommended to review both documents 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.
*A not-for-profit entity is an entity whose principal objective is not the generation of profit. A not-for-profit entity can be a single entity or a group of entities comprising the parent entity and each of the entities it controls. (The term is defined in the Glossary in ED 335, and also in Appendix D of AASB 136 Impairment of Assets.)

**An entity has public accountability if its debt or equity instruments are traded in a public market or it is in the process of issuing such instruments for trading in a public market; or it holds asset in a fiduciary capacity for a broad group of outsiders as one of its primary businesses. (The term is defined in the Glossary in ED 335, and also in Appendix A of AASB 1053 Application of Tiers of Australian Accounting Standards.)
 
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