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:.



Comments due to AASB by

Comments due to IASB by

ED 290 Reference to the Conceptual Framework

Proposed amendments to AASB 3

Proposes to:

  • Update the old conceptual framework reference to the new Conceptual Framework for Financial Reporting (issued March 2018)
  • Add an exception to the recognition principle for liabilities and contingent liabilities within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets and IFRIC 21 Levies
  • Make the IFRS 3 requirements for contingent assets more explicit.

20 August 2019

27 September 2019

ED 292 Amendments to AASB 17

Proposes targeted amendments to AASB 17 Insurance Contracts relating to the following topics:

  • Scope exclusions - credit card contracts and loan contracts that meet the definition of an insurance contract
  • Expected recovery of insurance acquisition cash flows
  • Contractual service margin attributable to investment-return service and investment-related service
  • Reinsurance contracts held - recovery of losses on underlying insurance contracts
  • Presentation in the statement of financial position
  • Applicability of the risk mitigation option
  • Transition modifications and reliefs, and
  • Minor amendments.

Also proposes to defer the effective date of AASB 17 by one year to annual reporting periods beginning on or after 1 January 2022, and to extend the AASB 9 Financial Instruments temporary exemption in AASB 4 Insurance Contracts by one year.

30 August 2019

25 September 2019

ED 294 Deferred Tax related to Assets and Liabilities arising from a Single Transaction

Proposed amendments to AASB 112

Proposes a narrow-scope amendment to the initial recognition exemption in AASB 112 Income Taxes so that it would not apply to equal and offsetting temporary differences (and equal and opposite deferred tax assets and liabilities) for items such as ROU assets and lease liabilities, and assets and liabilities arising from recognising decommissioning provisions.

18 October 2019

14 November 2019

ED 295 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities

Proposes a new Tier 2 disclosure framework for GPFS to replace RDR based on disclosures in IFRS for SMEs. The proposed framework will be referred to as Simplified Disclosures and will be included as a separate standard rather than by greying out unnecessary disclosures within the body of each Australian Accounting Standard.

15 November 2019


ED 296 Disclosure of Accounting Policies

Proposed amendments to AASB 101 and AASB Practice Statement 2

The proposals have been drafted to assist preparers in applying the concept of ‘materiality’ when making accounting policy disclosures. Under the proposals:

  • Only ‘material’ accounting policies are disclosed (rather than the current ‘significant’ requirement)
  • Policies relating to immaterial transactions are not disclosed
  • Not all policies relating to material transactions are themselves material, and therefore may not need to be disclosed
  • Additional guidance is added to assist in determining if a policy needs to be disclosed.

28 October 2019

29 November 2019

ED 297 Removal of Special Purpose Financial Statements for Certain For-Profit Private Sector Entities

Proposes to remove the ability of the following types of for-profit private sector entities from  being able to prepare special purpose financial statement from 2021:

  • Those where legislation requires  financial statements to be prepared in accordance with Australian Accounting Standards or ‘accounting standards’, and
  • Those where constitutions or other documents (e.g. lending agreements) require financial statements to be prepared in accordance with Australian Accounting Standards, provided that document was created or amended on or after 1 July 2020.

15 November 2019



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