You can choose to comply with either Australian accounting standards, international accounting standards, or certain overseas standards.
Complying with Australian accounting standards for Australian permanent establishments
Under the Income Tax Assessment Act 1997 (subsection 820-960(1A)) Australian permanent establishments (PEs) who choose this subsection to prepare their statements of financial performance and financial position must fully comply with Australian accounting standards. The Commissioner may decide (under subsection 820-960(4)) that an entity, or entities within a class of entities, do not need to comply with all or any part of the standards.
Following is the list of standards that PEs who choose to use Australian accounting standards:
- must fully comply with
- must comply with, except for the disclosure and comparative information requirements, or
- do not need to comply with
when preparing statements of financial performance and financial position.
Accounting standards that PEs must fully comply with
The Commissioner considers these accounting standards are the foundations for the preparation of statements of financial performance and statements of financial position as they prescribe the basic reporting requirements.
AASB 1001 Accounting Policies |
AASB 1004 Revenue |
AASB 1018 Statement of Financial Performance |
AASB 1020 and AASB 1020B Tax Effect Accounting |
AASB 1031 Materiality |
AASB 1040 Statement of Financial Position |
AASB 1042 Discontinuing Operations |
Accounting standards that PEs must comply with, except for the requirements concerning disclosures and comparative information
PEs must comply with the following accounting standards, except for the disclosures and comparative information requirements, because the Commissioner considers such disclosures and comparative information are not necessary as they do not prescribe any measurement or recognition.
AASB 1002 Events Occurring After Reporting Date |
AASB 1006 Interests in Joint Ventures |
AASB 1008 Leases |
AASB 1009 Construction Contracts |
AASB 1010 Recoverable Amount of Non-Current Assets |
AASB 1011 Research and Development Costs |
AASB 1012 Foreign Currency Translation |
AASB 1013 Goodwill |
AASB 1014 Set-Off and Extinguishment of Debt |
AASB 1015 Acquisition of Assets |
AASB 1016 Accounting for Investments in Associates |
AASB 1019 Inventories |
AASB 1021 Depreciation |
AASB 1022 Accounting for Extractive Industries |
AASB 1023 Financial Reporting of General Insurance Activities |
AASB 1028 Employee Benefits |
AASB 1033 Presentation and Disclosure of Financial Instruments |
AASB 1034 Information to be Disclosed in Financial Reports |
AASB 1036 Borrowing Costs |
AASB 1037 Self Generating and Regenerating Assets |
AASB 1038 Life Insurance Business |
AASB 1041 Revaluation of Non-current Assets |
AASB 1044 Provisions, Contingent Liabilities and Contingent Assets |
Accounting standards that PEs do not need to comply with
PEs are not required to comply with the following standards because the Commissioner considers these standards deal mainly with disclosure, and in general do not prescribe any recognition or measurement.
AASB 1005 Segment Reporting |
AASB 1017 Related Party Disclosure |
AASB 1024 Consolidated Accounts |
AASB 1025 Application of the Reporting Entity Concept and Other Amendments |
AASB 1026 Statement of Cash Flows |
AASB 1027 Earnings Per Share |
AASB 1029 Interim Financial Reporting |
AASB 1030 Application of Accounting Standards to Financial Accounts |
AASB 1032 Specific Disclosure by Financial Institutions |
AASB 1035 Amendments to AASB 1034 |
AASB 1039 Concise Financial Reports |
AASB 1043 Changes to application of AASB 1042 |
AASB 1045 Land Under Roads |
AASB 1046 Director and Executive Disclosures by Disclosing Entities |
AASB 1047 Disclosing the Impacts of Adopting Australian Equivalents to International Financial Reporting Standards |