Register / AASB 18 Presentation and Disclosure in Financial Statements / AASB 18 paragraph Aus9.1
Read the user tests through a not-for-profit lens
When a not-for-profit entity applies the objective and user references in AASB 18, it reads the phrases about future net cash inflows and stewardship in line with the common information needs of not-for-profit report users set out in the Conceptual Framework. The test is not an investor return test.
Why the paragraph exists
This is the paragraph that changes the reading of the whole standard for a not-for-profit. A board paper that justifies presentation choices by investor return language is answering the wrong question.
In practice
A board paper that justifies a presentation choice by reference to investor returns is answering the wrong test. Rewrite the objective section so the resource providers, service recipients and oversight bodies are the named users, and say what each needs to know.
The judgement is usually made once and reused. Put the wording in the accounting manual so a new preparer does not revert to the for-profit language in the next cycle.
The mistake to avoid
The common mistake is to keep the investor wording in the policy note while changing nothing in the actual presentation decisions.
Who it binds
A not-for-profit entity preparing Tier 1 general purpose financial statements.
What to do before the date
- Confirm the entity falls in this group: NFP private sector, NFP public sector and NFP higher education provider.
- Put the requirement into the financial statements preparation plan: read the user tests through a not-for-profit lens.
- Open a workpaper for the first evidence item: A note in the financial statements preparation file recording which user needs were applied and where the Conceptual Framework description was used.
Evidence an auditor will ask for
Dates
| Date | What it means | Applies to |
|---|---|---|
| 2027-12-31 | The instrument commences for this paragraph | NFP private, NFP public sector, NFP higher education |
| 2028-01-01 | First annual periods beginning on or after this date apply the Standard | NFP private, NFP public sector, NFP higher education |
Commencement and application are separate tests.
Cross-references
- AASB 18 paragraphs 9 and B5
- AASB 18 paragraph AusB5.1
- Conceptual Framework for Financial Reporting
Record note
The paragraph is an interpretive instruction, not a new disclosure. The evidence is therefore a prepared judgement, not a new note.
Questions
What does AASB 18 paragraph Aus9.1 require in practice?
A board paper that justifies a presentation choice by reference to investor returns is answering the wrong test. Rewrite the objective section so the resource providers, service recipients and oversight bodies are the named users, and say what each needs to know.
What is the common mistake under AASB 18 paragraph Aus9.1?
The common mistake is to keep the investor wording in the policy note while changing nothing in the actual presentation decisions.
What evidence should be kept?
At least: A note in the financial statements preparation file recording which user needs were applied and where the Conceptual Framework description was used.; The presentation policy paper or accounting position paper that names the resource providers, recipients of goods and services and oversight parties considered. 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 Aus9.1. Record retrieved 2026-10-20.