Our CaseWare content expert, Carmen Ridley (www.afrs.com.au) has provided a detailed side-by-side Financials RDR vs SDS comparison of accounts and highlight changes that are required. In this lengthy document, Carmen reviews both Reduced Disclosure Regime [RDR] financial statements vs a Simplified Disclosure Standard [SDS]) statements for a Not For Profit (NFP) entity.
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A similar document for a large Pty Ltd entity has also been completed, located at this link.
This is a fairly detailed document.
Using Financials that were generated by our desktop Financials IFRS product in both RDR & SDS for the same fictitious entity, Carmen illustrates what changes are required between each of these different standards. For each area, Carmen notes areas for which there is ‘no change’ or highlights where the changes should occur. In a number of instances, Carmen provides examples of what these could look like.
As Carmen specifies in this Financials RDR vs SDS comparison:
30 June 2021 is the last June reporting period for reduced disclosure (RDR) financial statements. All entities currently preparing RDR financial statements will need to change their reporting framework for annual reporting periods beginning on or after 1 July 2021.
Tier 2 general purpose financial reporting is now specified in AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities, however there are a number of changes between RDR and the new simplified disclosure regime at a fundamental level.
- AASB 1060 is a standalone standard which contains all the presentation and disclosure requirements under Tier 2, therefore entities will no longer be required to focus on shaded sentences in the AAS standards to identify their required disclosures.
- AASB 1060 was developed using IFRS for SME as a base standard and therefore the number of disclosures is lower, where RDR was developed using a top down approach to reduce the full IFRS disclosures.
- AASB 1060 is structured into sections which contain all the relevant requirements for a particular topic.
Caseware ACNC Company is a not-for-profit entity.
STOP PRESS! RDR vs SDS comparison “For Profit” version highlighting the changes that might arise in the NFP reporting requirements has also been completed. Click on this link to get the version detailed for Caseware Large Pty Ltd (a for-profit entity).
Enter your details below to access the NFP version document.
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Webinar – Importance of Decluttering in Financials (Presenter: Carmen Ridley)