The AICD made a submission to the Australian Accounting Standards Board (AASB) on the AASB Standard-Setting Frameworks for For-Profit Entities and Not-for-Profit Entities. In this submission we expressed concern that this consultation was premature, given the fundamental changes expected to the broader Australian Financial Reporting Framework. While supporting the term ‘Not-for-profit’, we did not support the definition of a not-for-profit and recommended this be reviewed. Further we did not support the definition provided in the proposal for a ‘for-profit’ entity. We noted in our submission that the AASB currently provided standards for both reporting entities and non-reporting entities, contrary to the position in the proposal. We also suggested that the assumption of ‘transaction neutrality’ and its ‘application’ should be reviewed.
You can read our submission here.