Home / Answers / Which entities are outside AASB 2026-4?
Which entities are outside AASB 2026-4?
Tier 2 and special purpose reporters, most for-profit entities, and higher education providers for the public sector reliefs. The instrument is narrower than its title suggests.
Is a Tier 2 reporter caught?
No. The instrument is relevant only to entities preparing Tier 1 general purpose financial statements. The AASB is running a separate project on AASB 18 for Tier 2, and this instrument does not answer it.
Is a for-profit company caught?
Only by the narrow track. The AASB 1039 and AASB 1054 amendments apply to for-profit entities, other than a superannuation entity applying AASB 1056, for annual periods beginning on or after 1 January 2027. The main AASB 18 and AASB 107 changes are not aimed at a for-profit reporter.
Is a higher education provider caught?
A public sector higher education provider is in scope for the AASB 18 effective date, but it cannot use the paragraph Aus47.2 category relief, the paragraph Aus78.2 expense relief or the paragraph Aus123.1 performance measures relief. Those paragraphs exclude it in terms.
Is a private sector not-for-profit caught?
Yes, for the AASB 18 presentation and disclosure changes and the AASB 107 changes, on the 1 January 2028 application date. It does not get the public sector elections.
What about a government?
A government applying AASB 1049 is in scope. Paragraphs Aus23.2 and AusB8.2 require all relevant AASB 1049 line items in the primary statements.
What about an entity outside Australia?
An entity that is not applying the Australian standards is outside the instrument. The instrument reaches entities through AASB 1057, so the application analysis starts there.
The paragraphs behind this answer
- AASB 18 paragraph Aus47.2: Decide whether to use the public sector category relief
- AASB 18 paragraph Aus78.2: Choose nature or function for public sector expenses, and say so
- AASB 18 paragraph Aus123.1: Decide whether management-defined performance measures are in scope
- AASB 1039 paragraph 21: Align the concise report reconciliation wording
- AASB 1054 paragraph 16: Reconcile net operating cash flow to the right profit figure
- AASB 2026-2 paragraph 31: Restore the Australian defined terms subheading
- AASB 2026-4 paragraphs 1 to 3: Confirm the instrument applies to the entity and the period
Questions
We are Tier 2, do we do nothing?
For this instrument, yes. Keep the AASB 1060 project in view, because it is separate and is not answered here.
Does a for-profit subsidiary of a group need to do anything?
Only if the AASB 1039 or AASB 1054 amendment reaches it, for a period beginning on or after 1 January 2027. The free check will say so.
Is a public sector higher education provider exempt?
Not from the instrument. It is excluded from three public sector reliefs, so it applies more of AASB 18, not less.