New special purpose financial statements (SPFS) disclosures take effect

By Cutcher & Neale Accounting and Financial Services - March 25, 2021

Under AASB 2019-4 Amendments to Australian Accounting Standards – Disclosure in Special Purpose Financial Statements of Not-for-Profit Private Sector Entities on Compliance with Recognition and Measurement Requirements, new disclosure requirements take effect for the first time for financial years ending 31 December.

NFPs will need to make new disclosures about their compliance with recognition and measurement requirements in Australian Accounting Standards.

They apply to:

  • Charities registered with the ACNC with an annual revenue of $250,000 or more preparing specialpurpose financial statements, and

  • NFPs lodging SPFSs with the Australian Securities & Investments Commission under the Corporations Act 2001 (for example, companies limited by guarantee).

Your SPFSs will need to disclose:
  • Why the decision was made to prepare an SPFS

  • For each material accounting policy that does not comply with the recognition and measurement requirements, an indication of where it does not comply, or that the assessment has not been made

  • The overall compliance of your SPFS with the recognition and measurement requirements of accounting standards (except for consolidation and equity accounting), or whether this assessment has not been made, and

  • How the consolidation-and-equity accounting requirements have been applied.

AASB 2019-4 makes amendments to AASB 1054 Australian Additional Disclosures.

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