Australian Accounting Alert on transition to A-IFRSs
10 Jun 2005
Deloitte (Australia) has published an Australian Accounting Alert covering a new Australian interpretation, Compliance with AASB 1 – SPFRs and Small Proprietary Companies (PDF 40k).
AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting Standards should be applied when an entity prepares its first financial report using A-IFRSs. Many entities in Australia are not required to prepare a financial report (for example, small proprietary companies), and those that do prepare a financial report are often permitted to prepare a
special purpose financial report (SPFR) on the basis that the entity is not a reporting entity. However, over time an entity's circumstances may change, requiring compliance with A-IFRSs. For these entities, the question arises as to when they should comply with the transitional provisions of AASB 1. This Accounting Alert addresses:
- preparation of a SPFR under the Corporations Act
- change in status from a small proprietary company to a large proprietary company