What is the overall approach for transitioning to the new standards?
The accounting standards for private enterprises are a simplified basis of accounting for private enterprises developed based on the specific financial reporting needs of this sector. Financial statement users place high importance on consistent application of accounting policies to comparative information. Accordingly, the general approach is to apply the standards on a retrospective basis. This means that the financial statements for the current year and comparative period must comply with the accounting standards for private enterprises. The AcSB recognizes that retrospective restatement may not meet a cost-benefit test for some items. To facilitate private enterprises in adopting accounting standards for private enterprises, the Accounting Standards Board has provided relief in certain areas. This relief is contained in First-time Adoption, paragraphs 1500.09-.25.
