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Simplified Disclosures – Transition options and opportunities
Clarity in financial reporting
Exploring the opportunities available on transition to the Simplified Disclosures financial reporting regime
The new ‘Simplified Disclosures’ Tier 2 financial reporting regime comes into effect from 1 July 2021 (see our earlier publication).
In this publication we explore what this means, and the opportunities available on transition.
In summary:
- The ability of many for-profit entities to prepare special purpose financial statements is removed with effect from 1 July 2021. In addition, a new Tier 2 ‘Simplified Disclosures’ Standard replaces ‘Reduced Disclosure Requirements’ (RDR) from the same date
- The transitional requirements are complex and depend upon various factors
- Many entities will have choices on transition, particularly those moving from stand‑alone special purpose financial statements to consolidated general purpose financial statements
- Entities choosing to early adopt have additional choices and options available
- There can be a substantial amount of effort required to transition to the new framework.
Note: This publication was originally published in March 2021 and updated in March 2022 to reflect amendments and developments since its original issue.
Published: March 2022
Simplified Disclosures – Transition options and opportunities
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