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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.

Simplified Disclosures - Transition options and opportunities
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The new ‘Simplified Disclosures’ Tier 2 financial reporting regime came 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 was 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 and September 2022 to reflect amendments and developments since its original issue.

    Published: September 2022

Contact us

Alison White

Deloitte - Australia
Alison is the leader of the Accounting & Corporate Reporting team in Deloitte’s Audit and Assurance division. She has over 25 years’ audit and accounting advisory experience in Australia, Hong Kong and South Africa, specialising in the resolution of complex accounting issues. Alison served as a member of the Australian Accounting Standards Board (AASB) and has recently completed her six-year term as the deputy chair. She is also a member of the Fair Value and Business Combinations Project Advisory Panels of the AASB. She is also a member of the Deloitte Global Expert Advisory Panel on Leases and the Property Council of Australia’s National Accounting Roundtable. Areas of specialist expertise include leasing and off-balance sheet structures, revenue recognition, impairment of assets, mergers and acquisitions and asset sale transactions.
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Moana Overton

Deloitte - Australia
Moana has over 21 years practical experience with Deloitte in a number of technical accounting related roles, including secondments to the Deloitte IFRS Global Office in London and Accounting Technical in New Zealand. In her current position Partner, Audit & Assurance – Accounting Technical, she provides specialist accounting advice to a variety of clients, specialising in impairment of assets and service concession arrangements, but also has extensive experience in all areas of A-IFRS. Moana was the primary author of AASB Research Report 9 – Perspectives on IAS 36: A Case for Standard Setting Activity (2019).
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