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