Register / AASB 1039 Concise Financial Reports / AASB 1039 paragraph 21
Align the concise report reconciliation wording
The wording of the concise report note exemption now matches the amended destination. An entity using the direct method need not include in the concise report a reconciliation to either profit measure, depending on which one applies to it.
Why the paragraph exists
The wording change looks editorial, but it decides which reconciliation the concise report may leave out.
In practice
Read the concise report note exemption against the amended paragraph, not against last year's template. The destination profit figure changed, and the exemption wording moved with it.
Where the concise report is prepared by a group team, give them the amended wording and the entity group that applies. A for-profit subsidiary may be on the earlier track.
The mistake to avoid
The common mistake is to leave the old wording because the concise report is treated as a marketing document.
Who it binds
An entity that prepares a concise financial report under AASB 1039.
What to do before the date
- Confirm the entity falls in this group: For-profit entity, NFP private sector, NFP public sector, NFP higher education provider and Superannuation entity.
- Put the requirement into the financial statements preparation plan: align the concise report reconciliation wording.
- Open a workpaper for the first evidence item: The concise financial report with the reconciliation wording checked against the amended paragraph.
Evidence an auditor will ask for
Dates
| Date | What it means | Applies to |
|---|---|---|
| 2026-12-31 | Commences for for-profit entities other than superannuation entities applying AASB 1056 | for-profit |
| 2027-12-31 | Commences for not-for-profit entities and superannuation entities applying AASB 1056 | NFP entities and superannuation |
| 2027-01-01 | Annual periods beginning on or after this date for for-profit entities other than superannuation entities | for-profit |
| 2028-01-01 | Annual periods beginning on or after this date for not-for-profit entities and superannuation entities | NFP entities and superannuation |
Commencement and application are separate tests.
Cross-references
- AASB 1054 paragraph 16
- AASB 2026-4 paragraph 21
Record note
This is the only AASB 1039 paragraph amended. The rest of the concise report requirements are unchanged.
Questions
What does AASB 1039 paragraph 21 require in practice?
Read the concise report note exemption against the amended paragraph, not against last year's template. The destination profit figure changed, and the exemption wording moved with it.
What is the common mistake under AASB 1039 paragraph 21?
The common mistake is to leave the old wording because the concise report is treated as a marketing document.
What evidence should be kept?
At least: The concise financial report with the reconciliation wording checked against the amended paragraph. The kit carries each one as a row with an owner column to complete.
Source
This page is our statement of the paragraph, cited so you can check it. Read F2026L01162 on legislation.gov.au.
Source pointer: AASB 1039 paragraph 21. Record retrieved 2026-10-20.