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AASB amends consolidation requirements for Australian entities

  • AASB (Australian Accounting Standards Board) (lt blue) Image

21 Jul 2011

The Australian Accounting Standards Board (AASB) has issued two Amending Standards, AASB 2011-5 'Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation' and AASB 2011-6 'Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation – Reduced Disclosure Requirements'.

The Australian Accounting Standards Board (AASB) has issued two Amending Standards, AASB 2011-5 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation and AASB 2011-6 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation – Reduced Disclosure Requirements.

The new standards extend relief from consolidation, the equity method and proportionate consolidation to not-for-profit entities and 'Tier 2' entities (which apply Australia's 'Reduced Disclosure Requirements', or 'RDR') in particular circumstances. The AASB considers the issue of the Standards to continue the deregulation of general purpose financial reporting introduced through AASB 1053 Application of Tiers of Australian Accounting Standards in 2010 and expects 'Tier 2' entities to be the main beneficiaries of the relief provided.

AASB 2011-5 applies to annual reporting periods beginning on or after 1 July 2011, but may be early adopted (provided certain conditions are met). AASB 2011-6 applies to annual reporting periods beginning on or after 1 July 2013, and may also be early adopted (provided AASB 1053 is also applied).

Click for AASB announcement (link to AASB website).

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