Register / AASB 18 Presentation and Disclosure in Financial Statements / AASB 18 paragraph Aus123.1
Decide whether management-defined performance measures are in scope
The entity is not required to identify or disclose management-defined performance measures. An entity that elects the relief does not apply paragraphs 117 to 125 or the guidance in paragraphs B113 to B142.
Why the paragraph exists
The relief removes a whole disclosure note, so the election has a visible effect on the notes and on the audit file.
In practice
List the measures the board and the annual report use, then decide whether any is a management-defined performance measure. The relief removes the note for an electing public sector entity, but it does not remove a measure the board still publishes elsewhere.
If the relief is elected, remove the note from the disclosure checklist as well as from the draft. A checklist that still asks for it will bring it back next year.
The mistake to avoid
The common mistake is to elect the relief and still publish a performance measure without the AASB 18 discipline.
Who it binds
A not-for-profit public sector entity that is not a higher education provider.
What to do before the date
- Confirm the entity falls in this group: NFP public sector.
- Put the requirement into the financial statements preparation plan: decide whether management-defined performance measures are in scope.
- Open a workpaper for the first evidence item: The accounting policy decision on management-defined performance measures.
Evidence an auditor will ask for
Dates
| Date | What it means | Applies to |
|---|---|---|
| 2027-12-31 | The instrument commences for this paragraph | NFP public sector |
| 2028-01-01 | First annual periods beginning on or after this date apply the Standard | NFP public sector |
Commencement and application are separate tests.
Cross-references
- AASB 18 paragraphs 117 to 125 and B113 to B142
Record note
An entity that does not elect the relief keeps the full management-defined performance measures requirements.
Questions
What does AASB 18 paragraph Aus123.1 require in practice?
List the measures the board and the annual report use, then decide whether any is a management-defined performance measure. The relief removes the note for an electing public sector entity, but it does not remove a measure the board still publishes elsewhere.
What is the common mistake under AASB 18 paragraph Aus123.1?
The common mistake is to elect the relief and still publish a performance measure without the AASB 18 discipline.
What evidence should be kept?
At least: The accounting policy decision on management-defined performance measures.; The note list showing whether a management-defined performance measures note is present. 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 Aus123.1. Record retrieved 2026-10-20.