Accounting Standard Of Australian Accounting Standards

AASB reveal reduce disclosure regime that allows the entities who are not publicly accountable, to reduce disclosers in there financial statements of their company. Australia Accounting Standard Board publish some new accounting standard related to the RDR implementing to review the differential reporting framework. These standards made on 30 June 2010 and implement on or after 1 July 2013. These new standards are:- †¢ AASB 1053 Application of Tiers of Australian Accounting Standards (PDF); and †¢ AASB 2010-2 Amendment to Australian Accounting Standards arising from Reduced Disclosure Requirements. Differential reporting in Australia is incorporated since early 1990s. It is based on the reporting entity concept that is outline in SAC 1†¦show more content†¦(Tier 1) AASB 2010-2 Amendment to Australian Accounting Standards arising from Reduced Disclosure Requirements. (Tier 2) TIER 1:- Tier 1 reporting requirements are applicable for the financial statements of following entities:- a) For that entities who are seeking for profit and have public accountability. b) The Australian Government and State, Territory and Local Government. (AASB 1049) TIER2:- Tier 2 reporting requirements are applicable for the financial statements of following entities:- c) Private sector entities that are seeking for profit and do not have public accountability. d) Not for profit private sector entities. e) Public sector entities both for profit and non-profit entities excluded Australian Government and State, Territory and Local Government. These entities can also apply Tier 1 reporting requirements for financial reporting. RDR can only apply in publicly accountable entities. Under AASB 1053, publicly accountable define as entities whereby the existing and future shareholders who provide the funds to the entity and other external to the entity who make economic decisions but they cannot demand the reports that they need for the particular information. Some examples of ‘publicly accountable’ entities:- 1. When entity’s financial instruments are traded and issue such instruments for trading in a public market (i.e. Listed on a stock exchange) 2. When an organisation hold assets for its customers or