AASB 1060 General Purpose Financial Statements Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities 206-213: Transition to Simplified Disclosures: explain how the move from the previous framework affected position, performance and cash flows; a returning entity explains why it stopped and resumed and whether AASB 1 or AASB 108 applies (an entity resuming Tier 2 under AASB 1053 paragraph 19B(e) gives only the stop and resume reasons); first statements reconcile equity at the transition date and at the latest prior period end and profit for the latest period, separating error corrections from policy changes; a public sector not-for-profit entity with information deficiencies discloses them, its rectification strategy and the Standards not complied with

What does 206-213 require?

An entity applying AASB 1 on first-time adoption gives these disclosures (one applying AASB 108 instead gives the policy change disclosures); AASB 1053 decides which Standard applies. The entity explains how moving from its previous reporting framework to Simplified Disclosures affected its reported position, performance and cash flows. An entity that previously applied Australian Accounting Standards or IFRSs (AASB 1 paragraph 4A) discloses why it stopped, why it is resuming, and whether it applied AASB 1 or applied Simplified Disclosures retrospectively under AASB 108; an entity merely resuming Tier 2 under AASB 1053 paragraph 19B(e) gives only the first two of these. The first Simplified Disclosures statements include a description of every accounting policy change, reconciliations of equity under the previous framework to equity under Simplified Disclosures at the date of transition and at the end of the latest period in the most recent previous annual statements, and a reconciliation of the latest period's profit or loss; errors discovered under the previous framework are distinguished from policy changes where practicable. An entity that presented no previous financial statements says so. A public sector not-for-profit entity facing extreme difficulty from information deficiencies that forced non-compliance with previous GAAP may treat AASB 1 paragraph 3 as satisfied provided it discloses the deficiencies and its rectification strategy, lists the Standards not complied with, and states explicit and unreserved compliance with every other Standard.