Register / AASB 18 Presentation and Disclosure in Financial Statements / AASB 18 paragraph Aus47.2
Decide whether to use the public sector category relief
The entity need not put income and expenses into the AASB 18 activity categories. An entity that elects the relief does not apply the listed paragraphs and guidance, and reads operating expense references as the expenses shown in the statement. The election is an accounting policy choice, so it has to be made and applied consistently.
Why the paragraph exists
The relief is available, not automatic. An entity that says nothing has not elected it, and an entity that elects it must be able to show the choice.
In practice
The relief is limited. Only a public sector entity outside the higher education sector can elect it. Check the entity status before the board minutes the election, because a provider that takes it has taken a relief it cannot use.
Record the election, the period it starts and the person who made it. The election can be changed only under the policy change requirements, so the first minute matters.
The mistake to avoid
The common mistake is to assume the relief applies because the entity is not-for-profit, without checking the public sector and higher education conditions.
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 to use the public sector category relief.
- Open a workpaper for the first evidence item: A signed accounting policy decision that states whether the relief is elected and from which period.
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 47 to 74 and B29 to B77
- AASB 18 paragraph Aus11.1
- AASB 107 paragraph Aus20.1
Record note
A higher education provider cannot use this relief, because the paragraph excludes it.
Questions
What does AASB 18 paragraph Aus47.2 require in practice?
The relief is limited. Only a public sector entity outside the higher education sector can elect it. Check the entity status before the board minutes the election, because a provider that takes it has taken a relief it cannot use.
What is the common mistake under AASB 18 paragraph Aus47.2?
The common mistake is to assume the relief applies because the entity is not-for-profit, without checking the public sector and higher education conditions.
What evidence should be kept?
At least: A signed accounting policy decision that states whether the relief is elected and from which period.; The statement format and the switch-off checklist for the elected route. 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 Aus47.2. Record retrieved 2026-10-20.