The Australian Accounting Standards
Board (AASB) has proposed to introduce a differential reporting
framework that would reduce disclosure requirements for many

Exposure draft 192 Revised Differential
Reporting Framework would introduce a second tier of requirements,

  • Publicly accountable, for-profit private
    entities would continue to have to apply full IFRS;
  • Non-publicly accountable, for-profit private
    entities and private, not-for-profit entities would be able to
    apply the reduced disclosure regime (RDR); and,
  • Public sector entities, except federal, state
    and territory governments, local governments and universities,
    would also be able to apply the RDR if the relevant regulator

Last year, the AASB released a consultation
suggesting the introduction of either the RDR or IFRS for SMEs.

AASB chairman Kevin Stevenson said the RDR
should substantially reduce the cost of preparing and auditing
general-purpose financial reports for the great majority of

“The proposals are designed to provide relief
while avoiding costly retraining, transitional and migration costs.
The existing handbook, with which people are familiar, will clearly
show which disclosures are not required of tier-two entities,”
Stevenson said.

Comments on the exposure draft are due by 23