Introduced in 2020, AASB 2020-2 brings together a formal roadmap for entities to transition from special purpose financial statements to general purpose financial statements.
It requires entities that historically had not been obligated to comply to now do so. That means these entities – such as those that are not ‘reporting entities’ – must comply with all recognition and measurement requirements of Australian Accounting Standards, in particular around how transactions are recorded in financial statements.
These changes are mandatory for years commencing on or after 1 July 2021 but early adoption with concessions is available. To qualify for concessions, an entity must be transitioning to AAS for the first time, either on a full retrospective basis, or by applying AASB 1 First Time Adoption of Australian Accounting Standards.
How we help
The adoption of Australian Accounting Standards is a process that is complex and only encountered occasionally by accounting professionals. AASB 1 is also a highly complex accounting standard and subject to significant interpretation.
To ensure your transition is successful, we can assist by:
- developing technical white papers
- drafting transition policies
- applying transition requirements
- preparing financial statements that comply with the Australian Accounting Standards.
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