AASB ED 335 General Purpose Financial Statements – Not-for-Profit Private Sector Tier 3 Entities

Please click here to view the Submission 'AASB ED 335 General Purpose Financial Statements – Not-for-Profit Private Sector Tier 3 Entities'.

Overview of the Submission:

The Institute of Public Accountants (IPA) welcomes the opportunity to provide comments on the above Exposure Draft (ED).

GENERAL COMMENT
IPA commends the AASB undertaking the project to simplify GPSF for smaller Tier 3 entities in a single stand-alone accounting standard. IPA therefore supports the overall objectives and principles of the draft standard. In particular, we support the proposals to reduce the accounting choices in areas such as:
• Financial instrument simplification (Q16)
• Practical expedient for identifying the highest and best use of non-financial assets (Q19)
• Specific identification of inventory cost of FIFO or weighted average and prohibiting LIFO (Q20(b))
• Expensing borrowing costs (Q31) and
• Modified retrospective approach and when it is impracticable to determine the cumulative effect of applying a new accounting policy (Q15).