The Australian Accounting Standards Board (AASB) has released Discussion Paper “Development of simplified accounting requirements (Tier 3 Not-for-Profit Private Sector Entities)” which is open for comment up to 31 March 2023.
The Discussion Paper proposes developing a stand-alone accounting standard containing the accounting requirements for smaller not-for-profit private sector entities. At the same time, the AASB will also consider removing the ability of not-for-profit private sector entities to prepare special purpose financial statements in the future.
The consultation provides an opportunity for interested stakeholders to help shape the financial reporting framework. We encourage all not-for-profit stakeholders to get involved by:
- completing the online survey here
- attending a planned virtual outreach session from October 2022 to March 2023. See registration details here: Upcoming Events (aasb.gov.au)
- making a written submission via 'Open for comment documents' here: Open for Comment (aasb.gov.au)
- reaching out to the AASB directly at standard@aasb.gov.au.
If you are not keen to read the full 122 page Discussion Paper, there is also:
- A 12-page snapshot providing an overview here: Tier 3 Snapshot (aasb.gov.au)
- A YouTube recording of the proposed changes here: AASB staff education session: Development of Simplified Accounting Requirements -Tier 3 NFP Entities - YouTube
We eagerly await the outcomes of the consultation period and the potential simplification measures arising for the Not-for-Profit Private Sector.
If you have any questions regarding the above, please contact Director of Corporate Assurance Alex Hardy on (02) 8262 8700 or ahardy@prosperity.com.au.
