Phase Two of the AASB approach for for-profit private sector entities adopting the revised Conceptual Framework for Financial Reporting was achieved last year. The AASB is now turning its attention to not-for-profit (NFP) private sector entities.

As part of the first stage in this NFP process the AASB published a Discussion Paper – Development of Simplified Accounting Requirements (Tier 3 Not-for-Profit Private Sector Entities) (DP) that proposes to extend the application of the Conceptual Framework for Financial Reporting to remove the ability for NFP private sector entities to prepare special purpose financial statements (SPFS).

As part of this project the AASB has a key proposal to develop a stand-alone accounting standard containing the accounting requirements for smaller NFP private sector entities – a third form of GPFS: GPFS-Tier 3 (simplified accounting). For further details of the proposals for Tier 3 reporting requirements refer to 23RU-04 New NFP GPFS – Tier 3 proposed.

The DP notes that as part of the first stage the AASB does not intend to develop proposals for reporting service performance information. This is expected to be a separate project in the second half of 2023.

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