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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 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

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