Comments sought on exposure drafts

At BDO, we provide comments locally to the Australian Accounting Standards Board (AASB) and internationally to the International Accounting Standards Board (IASB). We welcome any client comments on exposure drafts that are currently available.

If you would like to provide any comments, please contact Aletta Boshoff, Partner and National Leader, IFRS & Corporate Reporting and National Leader, ESG & Sustainability.

Document	Proposals	Comments due to AASB by	Comments due to IASB by
IASB ED Translation to a Hyperinflationary Presentation Currency – Proposed amendments to IAS 21	Proposes to amend IAS 21 The Effects of Changes in Foreign Exchange Rates to clarify how amounts in the financial statements of an entity whose functional currency is that of a non-hyperinflationary economy, are translated into the presentation currency of an economy that is hyperinflationary. In such cases, the closing rate at the date of the most recent statement of financial position is used to translate all amounts in the financial statements (income, expenses, assets, liabilities and equity).	N/A	22 November 2024
ED 331 Climate-related and Other Uncertainties in the Financial Statements	Proposes adding eight illustrative examples to existing IFRS® Accounting Standards to improve the reporting in the financial statements of climate-related risks and uncertainties. Refer to our article for more information.	4 October 2024	28 November 2024
ED 333 Equity Method of Accounting	Proposes amendments to AASB 128 Investments in Associates and Joint Ventures to answer application questions about how an investor applies the equity method to: Changes in ownership interests on obtaining significant influence Changes in ownership interests while retaining significant influence Recognition of its share of losses Transactions with associates Deferred tax effects on initial recognition related to measuring the fair value of its share of the associate’s identifiable assets and liabilities Contingent consideration The assessment of whether a decline in the fair value of an investment in associate is objective evidence that the net investment might be impaired. Refer to our publication for more information.	22 November 2024	20 January 2025
ED 334 Limiting the Ability of Not-for-Profit Entities to Prepare Special Purpose Financial Statements	Proposes that both private and public sector not-for-profit entities will have to prepare general purpose financial statements if they: Are required by legislation to comply with either Australian Accounting Standards or ‘accounting standards’ Are required only by their constituting document or another document to prepare financial statements that comply with Australian Accounting Standards (but only if the relevant document was created or amended on or after a date to be specified in a final standard), or Elect to prepare GPFS. Refer to our article for more information.	28 February 2025	N/A
ED 335 General Purpose Financial Statements – Not-for-Profit Private Sector Tier 3 Entities	Proposes a Tier 3 financial reporting framework for not-for-profit (NFP) private sector entities. Tier 3 contains simplified recognition, measurement, presentation and disclosures for private sector NFPs which can only be applied if the entity: Does not have public accountability, and Is a Tier 3 entity according to relevant legislation or constituting documents (trust deeds) and other documents. Tier 3 entities can still opt to apply Tier 1 or Tier 2 Simplified Disclosures) if they so wish. Refer to our article for more information.	28 February 2025	N/A