The Australian Accounting Standards Board (AASB) has released AASB 1061 ‘General Purpose Financial Statements – Not-for-Profit Private Sector Tier 3 Entities’, a new standard designed to simplify financial reporting for eligible smaller not-for-profit organisations.
The new standard forms part of broader financial reporting reforms aimed at progressively reducing the use of special purpose financial statements (SPFS), whilst also supporting the transition to general purpose financial statements (GPFS). The new Tier 3 framework is aimed at providing a simpler and more suitable reporting option for smaller not-for-profits.
The standard applies to reporting periods beginning on or after 1 July 2029, with early adoption permitted. Further work is expected to determine which entities will be eligible to use the new framework.
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