AASB StandardAASB 2026-6October 2026
The notes shall:disclose present information about the basis of preparation of the financial statements (see paragraphs 9–15) and the specific accounting policies used, in accordance with paragraphs 95–97;disclose the information required by this Standard that is not presented elsewhere in the financial statements; andprovide information that is not presented elsewhere in the financial statements but is relevant to an understanding of any of them.[Based on IFRS for SMEs Accounting Standard paragraph 8.2 and AASB 18 paragraph 113]An entity shall, as far as practicable, present the notes in a systematic manner (see paragraph B112). An entity shall cross-reference each item in the financial statements to any related information in the notes. [Based on IFRS for SMEs Accounting Standard paragraph 8.3 and AASB 18 paragraph 114]93 [Deleted] Examples of systematic ordering or grouping of the notes include:(a) giving prominence to the areas of its activities that the entity considers to be most relevant to an understanding of its financial performance and financial position, such as grouping together information about particular operating activities;(b) grouping together information about items measured similarly such as assets measured at fair value; or(c) following the order of the line items in the statement(s) of profit or loss and other comprehensive income and the statement of financial position, such as:(i) statement of compliance with Australian Accounting Standards – Simplified Disclosures (see paragraph 10);(ii) material accounting policy information (see paragraph 95);(iii) supporting information for items presented in the statements of financial position and in the statement(s) of profit or loss and other comprehensive income, and in the statements of changes in equity and of cash flows, in the order in which each statement and each line item is presented; and(iv) other disclosures, including:(1) contingent liabilities (see paragraph 154) and unrecognised contractual commitments; and(2) non-financial disclosures.[Based on IFRS for SMEs Standard paragraph 8.4]An entity may disclose present notes providing information about the basis of preparation of the financial statements and specific accounting policies as a separate section of the financial statements. [Based on AASB 18 paragraph 115]Defined termsAppendix A is amended as follows:Presentation of the financial statementsAccounting policies are defined in paragraph 5 of AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, and the term is used in this Standard with the same meaning.Aggregation is the adding together of assets, liabilities, equity, income, expenses or cash flows that share characteristics and are included in the same classification.Classification is the sorting of assets, liabilities, equity, income, expenses and cash flows based on shared characteristics.Disaggregation is the separation of an item into component parts that have characteristics that are not shared.General purpose financial reports are reports that provide financial information about a reporting entity that is useful to primary users in making decisions relating to providing resources to the entity. Those decisions involve decisions about:(a) buying, selling or holding equity and debt instruments;(b) providing or settling loans and other forms of credit; or(c) exercising rights to vote on, or otherwise influence, the entity’s management’s actions that affect the use of the entity’s economic resources.General purpose financial reports include – but are not restricted to – an entity’s general purpose financial statements and sustainability-related financial disclosures.General purpose financial statements (referred to as ‘financial statements’) are those intended to meet the needs of users who are not in a position to require an entity to prepare reports tailored to their particular information needs.General purpose financial statements are a particular form of general purpose financial reports that provide information about the reporting entity’s assets, liabilities, equity, income and expenses.Higher education provider is a body approved under Division 16 of the Higher Education Support Act 2003.Impracticable Applying a requirement is impracticable when the entity cannot apply it after making every reasonable effort to do so.IFRS Accounting Standards International Financial Reporting Standards (IFRSs) are accounting Sstandards and Interpretations issued by the International Accounting Standards Board (IASB). They comprise:(a) International Financial Reporting Standards;(b) International Accounting Standards;(c) IFRIC Interpretations; and(d) SIC Interpretations.45IFRS Accounting Standards were previously known as International Financial Reporting Standards, IFRS, IFRSs and IFRS Standards.45 Definition of IFRSs amended after the name changes introduced by the revised Constitution of the IFRS Foundation in 2010.Material information: Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity (see paragraphs B1–B5).Materiality depends on the nature or magnitude of information, or both. An entity assesses whether information, either individually or in combination with other information, is material in the context of its financial statements taken as a whole.Information is obscured if it is communicated in a way that would have a similar effect for primary users of financial statements to omitting or misstating that information. The following are examples of circumstances that may result in material information being obscured:(a) information regarding a material item, transaction or other event is disclosed in the financial statements but the language used is vague or unclear;(b) information regarding a material item, transaction or other event is scattered throughout the financial statements;(c) dissimilar items, transactions or other events are inappropriately aggregated;(d) similar items, transactions or other events are inappropriately disaggregated; and(e) the understandability of the financial statements is reduced as a result of material information being hidden by immaterial information to the extent that a primary user is unable to determine what information is material.Assessing whether information could reasonably be expected to influence decisions made by the primary users of a specific reporting entity’s general purpose financial statements requires an entity to consider the characteristics of those users while also considering the entity’s own circumstances.Many existing and potential investors, lenders and other creditors cannot require reporting entities to provide information directly to them and must rely on general purpose financial statements for much of the financial information they need. Consequently, they are the primary users to whom general purpose financial statements are directed. Financial statements are prepared for users who have a reasonable knowledge of business and economic activities and who review and analyse the information diligently. At times, even well-informed and diligent users may need to seek the aid of an adviser to understand information about complex economic phenomena.Notes contain information in financial statements provided in addition to that presented in the primary financial statements. statement of financial position, statement(s) of profit or loss and other comprehensive income, separate income statement (if presented), statement of changes in equity and statement of cash flows. Notes provide narrative descriptions or disaggregations of items presented in those statements and information about items that do not qualify for recognition in those statements.Operating profit or loss is the total of all income and expenses classified in the operating category.Other comprehensive income comprises items of income and expense (including reclassification adjustments) that are not recognised outside in profit or loss as required or permitted by other Australian Accounting Standards (see paragraph B87).The components of other comprehensive income include:(a) changes in revaluation surplus (see AASB 116 Property, Plant and Equipment and AASB 138 Intangible Assets);(b) remeasurements of defined benefit plans (see AASB 119 Employee Benefits);(c) gains and losses arising from translating the financial statements of a foreign operation (see AASB 121 The Effects of Changes in Foreign Exchange Rates);(d) gains and losses from investments in equity instruments designated at fair value through other comprehensive income in accordance with paragraph 5.7.5 of AASB 9 Financial Instruments;(da) gains and losses on financial assets measured at fair value through other comprehensive income in accordance with paragraph 4.1.2A of AASB 9;(e) the effective portion of gains and losses on hedging instruments in a cash flow hedge and the gains and losses on hedging instruments that hedge investments in equity instruments measured at fair value through other comprehensive income in accordance with paragraph 5.7.5 of AASB 9 (see Chapter 6 of AASB 9);(f) for particular liabilities designated as at fair value through profit or loss, the amount of the change in fair value that is attributable to changes in the liability’s credit risk (see paragraph 5.7.7 of AASB 9);(g) changes in the value of the time value of options when separating the intrinsic value and time value of an option contract and designating as the hedging instrument only the changes in the intrinsic value (see Chapter 6 of AASB 9);(h) changes in the value of the forward elements of forward contracts when separating the forward element and spot element of a forward contract and designating as the hedging instrument only the changes in the spot element, and changes in the value of the foreign currency basis spread of a financial instrument when excluding it from the designation of that financial instrument as the hedging instrument (see Chapter 6 of AASB 9);(i) insurance finance income and expenses from contracts issued within the scope of AASB 17 Insurance Contracts excluded from profit or loss when total insurance finance income or expenses is disaggregated to include in profit or loss an amount determined by a systematic allocation applying paragraph 88(b) of AASB 17, or by an amount that eliminates accounting mismatches with the finance income or expenses arising on the underlying items, applying paragraph 89(b) of AASB 17; and(j) finance income and expenses from reinsurance contracts held excluded from profit or loss when total reinsurance finance income or expenses is disaggregated to include in profit or loss an amount determined by a systematic allocation applying paragraph 88(b) of AASB 17.Owners are holders of claims instruments classified as equity.Primary financial statements are the statement(s) of financial performance, the statement of financial position, the statement of changes in equity and the statement of cash flows.Profit or loss is the total of income less expenses included in the statement of profit or loss., excluding the components of other comprehensive income.Profit or loss before financing and income taxes is the total of operating profit or loss and all income and expenses classified in the investing category.Reclassification adjustments are amounts reclassified to profit or loss in the current reporting period that were included recognised in other comprehensive income in the current or previous prior periods.Total comprehensive income is the change in equity during a reporting period resulting from transactions and other events, other than those changes resulting from transactions with owners in their capacity as owners.Total comprehensive income comprises all components of ‘profit or loss’ and of ‘other comprehensive income’.Useful structured summary is a structured summary provided in a primary financial statement of a reporting entity’s recognised assets, liabilities, equity, income, expenses and cash flows that is useful for:(a) obtaining an understandable overview of the entity’s recognised assets, liabilities, equity, income, expenses and cash flows;(b) making comparisons between entities, and between reporting periods for the same entity; and(c) identifying items or areas about which users of financial statements may wish to seek additional information in the notes.Statement of Cash Flows cash flows…Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents and the receipt of interest and dividends as described in paragraphs 84A–84D.Notwithstanding the definition of ‘investing activities’, a not-for-profit public sector entity that is not a higher education provider is permitted by paragraph 84E to classify the receipt of interest and dividends as operating activities rather than investing activities.…Related party disclosures…Government, in the context of related party disclosures, refers to government, government agencies and similar bodies whether local, national or international.Effective date and transitionAppendix B is changed to Appendix C and the title amended, paragraph B1 is renumbered to C1 and paragraphs C2–C4 and a heading before paragraph C2 are added as follows:
B16 Financial statements result from entities processing large numbers of transactions and other events. These transactions and other events give rise to assets, liabilities, equity, income, expenses and cash flows.B17 To apply the requirements in paragraph 21, an entity shall aggregate items based on shared characteristics (that is, aggregate items that have similar characteristics) and disaggregate items based on characteristics that are not shared (that is, disaggregate items that have dissimilar characteristics). In doing so, an entity shall:(a) identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events;(b) classify and aggregate assets, liabilities, equity, income, expenses and cash flows into items based on their characteristics (for example, their nature, their function, their measurement basis or another characteristic) so as to result in the presentation in the primary financial statements of line items and disclosure in the notes of items that have at least one similar characteristic; and(c) disaggregate items based on dissimilar characteristics:(i) in the primary financial statements, as necessary to provide useful structured summaries (as described in paragraph 30C); and(ii) in the notes, as necessary to provide material information (as described in paragraph 30D).B18 An entity may apply the steps in paragraphs B17(a)–B17(c) in varying order to apply the principles of aggregation and disaggregation in paragraph 21.Basis of aggregation and disaggregationB19 Paragraphs B16–B18 explain that an entity uses its judgement to aggregate and disaggregate assets, liabilities, equity, income, expenses and cash flows from individual transactions and other events based on similar and dissimilar characteristics. Paragraphs B78 and B110 set out examples of characteristics an entity considers in making its judgements.B20 The more similar the characteristics of assets, liabilities, equity, income, expenses and cash flows are, the more likely it is that aggregating them will fulfil the role of the primary financial statements (that is, to provide useful structured summaries as described in paragraph 30C) or the notes (that is, to provide material information as described in paragraph 30D). The more dissimilar the characteristics of assets, liabilities, equity, income, expenses and cash flows are, the more likely it is that disaggregating the items will fulfil the roles of the primary financial statements or the notes.B21 The items aggregated and presented as line items in the primary financial statements shall have at least one similar characteristic other than meeting the definition of assets, liabilities, equity, income, expenses or cash flows. However, because the role of the primary financial statements is to provide useful structured summaries, the line items in the primary financial statements are also likely to aggregate items that have sufficiently dissimilar characteristics that information about the disaggregated items is material.B22 Applying paragraph 21, an entity shall disaggregate items that have dissimilar characteristics when the resulting information is material. A single dissimilar characteristic could result in information about disaggregated items being material.B23 For example, an entity might present in the statement of financial position financial assets that comprise equity investments and debt investments separately from non-financial assets. The financial assets have dissimilar characteristics because they have different measurement bases – some are measured at fair value through profit or loss and others at amortised cost. The entity might therefore determine that to provide a useful structured summary it is necessary to present line items that disaggregate the financial assets based on those measurement bases. That disaggregation results in a line item comprising equity investments and debt investments measured at fair value through profit or loss and a line item comprising debt investments measured at amortised cost. Because equity investments are dissimilar to debt investments in that each exposes the entity to different risks, the entity would assess whether further disaggregation in the statement of financial position of financial assets measured at fair value through profit or loss into equity investments and debt investments is needed to provide a useful structured summary. If not, and if the resulting information were material, the entity would need to disclose in the notes the equity investments separately from the debt investments. In addition if, for example, the equity investments had other dissimilar characteristics, the entity would be required to disaggregate further those equity investments in the notes if the resulting information were material.Description of itemsB24 Paragraph 22A requires an entity to label and describe items presented or disclosed in a way that faithfully represents the characteristics of the item. Such items will often be aggregations of items arising from individual transactions or other events and could vary in whether they are aggregations of items for which information is material and items for which information is immaterial. Specifically, in either the primary financial statements or in the notes:(a) an item for which information is material could be aggregated with other items for which information is also material – an entity might provide such an aggregation to summarise information but would also be required to disclose information about each item;(b) an item for which information is material could be aggregated with items for which information is not material – an entity would be required to provide information about disaggregated items only if immaterial information obscured the material information; or(c) an item for which information is not material could be aggregated with other items for which information is not material – an entity might provide such an aggregation to complete a list of items and would not be required to disclose information about disaggregated items, subject to paragraph B26(b).B25 An entity shall label items presented or disclosed as ‘other’ only if it cannot find a more informative label. Examples of how an entity might find a more informative label are:(a) if an item for which information is material is aggregated with items for which information is not material, finding a label that describes the item for which information is material; and(b) if items for which information is not material are aggregated:(i) aggregating items that share similar characteristics and describing them in a way that faithfully represents the similar characteristics; or(ii) aggregating items with other items that do not share similar characteristics and describing them in a way that faithfully represents the dissimilar characteristics of the items.B26 If an entity cannot find a more informative label than ‘other’:(a) for any aggregation – the entity shall use a label that describes the aggregated item as precisely as possible, for example, ‘other operating expenses’ or ‘other finance expenses’.(b) for an aggregation comprising only items for which information is not material – the entity shall consider whether the aggregated amount is sufficiently large that users of financial statements might reasonably question whether it includes items for which information could be material. If so, information to resolve that question is material information. Accordingly, in such cases, the entity shall disclose further information about the amount – for example:(i) an explanation that no items for which information would be material are included in the amount; or(ii) an explanation that the amount comprises several items for which information would not be material, with an indication of the nature and amount of the largest item.
B96 Some current liabilities, such as trade payables and some accruals for employee and other operating costs, are part of the working capital used in an entity’s normal operating cycle. An entity classifies such items as current liabilities even if they are due to be settled more than 12 months after the reporting period. The same normal operating cycle applies to the classification of the entity’s assets and liabilities. When the entity’s normal operating cycle is not clearly identifiable, it is assumed to be 12 months.Held primarily for the purpose of trading (see paragraph 40(b)) or due to be settled within 12 months (see paragraph 40(c))B97 Other current liabilities are not settled as part of the normal operating cycle, but are due for settlement within 12 months after the reporting period or held primarily for the purpose of trading. Examples are some financial liabilities that meet the definition of held for trading in AASB 9, bank overdrafts, and the current portion of non-current financial liabilities, dividends payable, income taxes and other non-trade payables. Financial liabilities that provide financing on a long-term basis (that is, are not part of the working capital used in the entity’s normal operating cycle) and are not due for settlement within 12 months after the reporting period are non-current liabilities, subject to paragraphs B99–B103.B98 An entity classifies its financial liabilities as current when they are due to be settled within 12 months after the reporting period, even if:(a) the original term was for a period longer than 12 months; and(b) an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the reporting period and before the financial statements are authorised for issue.Right to defer settlement for at least 12 months (paragraph 40(d))B99 An entity’s right to defer settlement of a liability for at least 12 months after the reporting period must have substance and, as illustrated in paragraphs B100–B103, must exist at the end of the reporting period.B100 An entity’s right to defer settlement of a liability arising from a loan arrangement for at least 12 months after the reporting period may be subject to the entity complying with conditions specified in that loan arrangement (hereafter referred to as ‘covenants’). For the purposes of applying paragraph 40(d), such covenants:(a) affect whether that right exists at the end of the reporting period – as illustrated in paragraphs B102–B103 – if an entity is required to comply with the covenant on or before the end of the reporting period. Such a covenant affects whether the right exists at the end of the reporting period even if compliance with the covenant is assessed only after the reporting period (for example, a covenant based on the entity’s financial position at the end of the reporting period but assessed for compliance only after the reporting period).(b) do not affect whether that right exists at the end of the reporting period if an entity is required to comply with the covenant only after the reporting period (for example, a covenant based on the entity’s financial position six months after the end of the reporting period).B101 If an entity has the right, at the end of the reporting period, to roll over an obligation for at least 12 months after the reporting period under an existing loan facility, it classifies the obligation as non-current, even if it would otherwise be due within a shorter period. If the entity has no such right, the entity does not consider the potential to refinance the obligation and classifies the obligation as current.B102 When an entity breaches a covenant of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand, it classifies the liability as current, even if the lender agreed, after the reporting period and before the authorisation of the financial statements for issue, not to demand payment as a consequence of the breach. The entity classifies the liability as current because, at the end of the reporting period, it does not have the right to defer its settlement for at least 12 months after that date.B103 However, an entity classifies the liability as non-current if the lender agreed by the end of the reporting period to provide a period of grace ending at least 12 months after the reporting period, within which the entity can rectify the breach and during which the lender cannot demand immediate repayment.B104 Classification of a liability is unaffected by the likelihood that the entity will exercise its right to defer settlement of the liability for at least 12 months after the reporting period. If a liability meets the criteria in paragraphs 40–41 for classification as non-current, it is classified as non-current even if management intends or expects the entity to settle the liability within 12 months after the reporting period, or even if the entity settles the liability between the end of the reporting period and the date the financial statements are authorised for issue. However, in either of those circumstances, the entity may need to disclose information about the timing of settlement to enable users of financial statements to understand the impact of the liability on the entity’s financial position (see paragraphs 6C(c) of AASB 108 and B105(d)).B105 If the following events occur between the end of the reporting period and the date the financial statements are authorised for issue, those events are disclosed as non-adjusting events in accordance with AASB 110 Events after the Reporting Period:(a) refinancing on a long-term basis of a liability classified as current (see paragraph B98);(b) rectification of a breach of a long-term loan arrangement classified as current (see paragraph B102);(c) the granting by the lender of a period of grace to rectify a breach of a long-term loan arrangement classified as current (see paragraph B103); and(d) settlement of a liability classified as non-current (see paragraph B104).B106 [Not included]Settlement (paragraphs 40(a), 40(c) and 40(d))B107 For the purpose of classifying a liability as current or non-current, settlement refers to a transfer to the counterparty that results in the extinguishment of the liability. The transfer could be of:(a) cash or other economic resources – for example, goods or services; or(b) the entity’s own equity instruments, unless paragraph B108 applies.B108 Terms of a liability that could, at the option of the counterparty, result in its settlement by the transfer of the entity’s own equity instruments do not affect its classification as current or non-current if, applying AASB 132 Financial Instruments: Presentation, the entity classifies the option as an equity instrument, recognising it separately from the liability as an equity component of a compound financial instrument.
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