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Reduced Disclosure Requirements

The AASB is continuing its efforts to rationalise financial reporting in Australia through its Differential Reporting project.

In June 2010,  the AASB issued Standards  establishing a differential reporting framework consisting of two tiers of reporting requirements for preparing general purpose financial statements (GPFSs):

(a) Tier 1: Australian Accounting Standards; and

(b) Tier 2: Australian Accounting Standards – Reduced Disclosure Requirements (RDR).

Compared with Tier 1, Tier 2 significantly reduces the disclosure burden and the costs of preparing and auditing GPFSs for most entities, whether for-profit or not-for-profit in the private and public sectors.

The AASB is now undertaking research to assess the implications of earlier proposals relating to clarifying the meaning of GPFSs and changing the application focus of Standards from reporting entity to GPFSs.  The AASB is considering the potential impact of these proposals on entities that currently prepare special purpose financial statements.

In this section of the website, you will find links to information regarding all aspects of the Differential Reporting project, including:

  • Project updates on the progress of the Differential Reporting Project
  • Tier 2 work program setting out the estimated times for the release of Tier 2 Supplements to Tier1 Exposure Drafts/ Standards
  • Tier 2 requirements including Standards establishing Tier 2 and compiled RDR versions of Australian Accounting Standards for early adopters
  • An explanation of the principles used to determine Tier 2 disclosure requirements
  • An archive of consultative documents, submissions, media releases and other material relating to the Differential Reporting project