Comments sought on exposure drafts

At BDO, we provide comments locally to the Australian Accounting Standards Board (AASB) and internationally to the International Accounting Standards Board (IASB). We welcome any client comments on exposure drafts that are currently available for comment. If you would like to provide any comments please contact Aletta Boshoff at [email protected]mailto:

Document	Proposals	Comments due to AASB by	Comments due to IASB by
ED 298 General Presentation and Disclosures	The ED proposes a new structure for the statement of profit or loss that is more prescriptive and more closely aligns with the presentation in the cash flow statement. Proposals include that income and expenses be classified and included in profit or loss in the following categories: Operating Investing Financing Integral associates and joint ventures Income tax Discontinued operations. In addition, the ED proposes the following new subtotals in the statement of profit or loss: Operating profit Operating profit or loss and income and expenses from integral associates and joint ventures, and Profit or loss before financing and income tax. The prescriptive nature of the proposals is intended to improve comparability between entities and industries by requiring specific items to be included in the various subtotals. The ED also proposes that all management performance measures (same measures used in public announcements), be disclosed and reconciled in a single note to the financial statements.	15 August 2020	30 September 2020
ED 302 Amendments to Australian Accounting Standards – Disclosures in Special Purpose Financial Statements of Certain For-Profit Private Sector	The ED proposes to require disclosure about the extent of compliance with the recognition and measurement requirements of Australian Accounting Standards by certain for-profit private sector entities that: Temporarily prepare special purpose financial statements (SPFS) until they are no longer permitted to do so for annual periods beginning on or after 1 July 2021 (e.g. entities preparing financial statements under Part 2M of the Corporations Act), and Continue to prepare SPFS beyond 30 June 2022. The proposed disclosures are more extensive than what is required by private sector not-for-profit entities (refer AASB 2019-4 Amendments to Australian Accounting Standards – Disclosure in Special Purpose Financial Statements of Not-for-Profit Private Sector Entities on Compliance with Recognition and Measurement Requirements.)	11 September 2020	N/A
Discussion Paper Business Combinations – Disclosures, Goodwill and Impairment	The IASB is carrying out a research project on goodwill and impairment to consider issues identified in the post-implementation review of IFRS 3 Business Combinations including: Disclosing information about acquisitions Testing goodwill for impairment – effectiveness and cost Whether to reintroduce amortisation of goodwill Recognising intangibles separately from goodwill.	2 October 2020	31 December 2020

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