Register / AASB 18 Presentation and Disclosure in Financial Statements / AASB 18 paragraph Aus11.1
Use a defined label with a different meaning only on a faithful basis
The entity may put a label defined in AASB 18 on a total or subtotal that does not meet the defined meaning, including the operating profit or loss label, provided the label faithfully represents what the amount contains. The permission does not remove the faithful representation test in paragraphs 43 and 74.
Why the paragraph exists
Superannuation and some public sector statements do not have the AASB 18 categories, so a familiar label may not carry the defined meaning. The paragraph permits the label, not a misleading label.
In practice
A fund may label a subtotal 'operating profit' because the board reads it that way. The label is permitted only if the note says what the amount contains and the amount is faithfully represented, because the Appendix A definition is not imported by habit.
Build the label register early. It is much harder to reconstruct after the statements are drafted and the board pack has used the label for a year.
The mistake to avoid
The common mistake is to treat the paragraph as a licence to keep an old label without the explanatory note.
Who it binds
A superannuation entity that applies AASB 1056. Also a public sector not-for-profit, other than a higher education provider, that has elected the paragraph Aus47.2 relief.
What to do before the date
- Confirm the entity falls in this group: Superannuation entity and NFP public sector.
- Put the requirement into the financial statements preparation plan: use a defined label with a different meaning only on a faithful basis.
- Open a workpaper for the first evidence item: A label register that lists each AASB 18 defined label used, the amount it labels and the reason the label is faithful.
Evidence an auditor will ask for
Dates
| Date | What it means | Applies to |
|---|---|---|
| 2027-12-31 | The instrument commences for this paragraph | superannuation, NFP public sector |
| 2028-01-01 | First annual periods beginning on or after this date apply the Standard | superannuation, NFP public sector |
Commencement and application are separate tests.
Cross-references
- AASB 18 paragraphs 43, 74 and Appendix A
- AASB 18 paragraph Aus47.2
Record note
The permission is conditional on the faithful representation test. An entity cannot elect it for convenience.
Questions
What does AASB 18 paragraph Aus11.1 require in practice?
A fund may label a subtotal 'operating profit' because the board reads it that way. The label is permitted only if the note says what the amount contains and the amount is faithfully represented, because the Appendix A definition is not imported by habit.
What is the common mistake under AASB 18 paragraph Aus11.1?
The common mistake is to treat the paragraph as a licence to keep an old label without the explanatory note.
What evidence should be kept?
At least: A label register that lists each AASB 18 defined label used, the amount it labels and the reason the label is faithful.; The note or accounting policy wording that explains any label whose meaning differs from the Appendix A definition. 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 18 paragraph Aus11.1. Record retrieved 2026-10-20.