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The IASB’s definition of a public account-tability is not based on a size-threshold determination; rather it is the fact that an entity has issued equity or debt securities in a public market and thus has to lodge financial reports to external regulatory organisations or an entity holds assets in a fiduciary capacity for a broad group of outsiders. Furthermore, the criterion (b) of the international definition is basically a matter for each national jurisdiction to decide whether entities without public account-ability should be required to create general purpose financial statements.
In contrast, the currently existing Australian differential reporting regime is based on the ‘reporting entity concept’ which can be understood as the core element of the Australian financial reporting framework...
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