AASB approves reduced disclosures for AASB 16 Leases and AASB 1058 Income of Not-for-Profit Entities
To coincide with the 1 January 2019 application date for the new leases standard (AASB 16 Leases), and the new income standard, AASB 1058 Income of Not-for-Profit Entities, the Australian Accounting Standards Board recently issued AASB 2018-3 Amendments to Australian Accounting Standards – Reduced Disclosure Requirements to reduce the required disclosures for entities applying the Reduced Disclosure Regime (RDR).
The amendments clarify that disclosures do not necessarily need to be provided in a tabular format. In addition, the following disclosures from the leases standard are not required for entities applying RDR:
- Lease liability maturity analysis presented separately from the maturity analysis for other financial liabilities (paragraph 58)
- Lessee’s extension and termination options (paragraph B50), except that details of the prevalence of options being exercised that were not included in the measurement of lease liabilities must still be disclosed
- Lessee’s residual value guarantees (paragraph B51), except that details of the nature of underlying assets for which guarantees have been provided must also still be disclosed, and
- Lessee’s sale and leaseback transactions (paragraph B52).
The following disclosures regarding income of not-for-profit entities are not required for entities applying RDR:
- Qualitative information about the entity’s dependence on volunteer services it receives (including those not recognised)
- Qualitative information about the entity’s dependence on inventories held but not recognised as assets during the reporting period.
- Explanation of when the entity expects to recognise income from liabilities for unsatisfied performance obligations at the end of the reporting period
- For obligations settled over time, an explanation of why the methods used provide a faithful depiction of the entity’s progress toward satisfying its obligation, and
- Information about externally imposed restrictions that limit or direct the purpose for which resources controlled by the entity may be used.