The requirement to move to Simplified Disclosures for years ending 30 June 2022 does not apply to not-for-profit entities (NFPs) because the Australian Accounting Standards Board (AASB) currently has a separate project under way to revisit the financial reporting framework for NFPs.
Consequently, there is a lack of urgency for these entities to change to Simplified Disclosures unless they are currently preparing Tier 2 general purpose financial statements (Reduced Disclosures). This is because Reduced Disclosures as a financial reporting option will be withdrawn once Simplified Disclosures becomes effective from 1 July 2021.
Recently published AASB 2021-1 Amendments to Australian Accounting Standards – Transition to Tier 2: Simplified Disclosures for Not-for-Profit Entities now contains amended transitional requirements so that NFPs will get optional relief from presenting comparative information in the notes if they did not previously disclose the comparable information in their most recent previous financial statements (i.e. comparative information for new disclosures).
It is important to note that the following other transitional exemptions (optional relief) available to for-profit entities cannot be used by NFPs adopting Simplified Disclosures for the first time:
Available on first time adoption
Relief from restating comparatives
Before 1 July 2021
Relief from distinguishing errors from changes in accounting policies
Before 1 July 2022