Document ID: chunk:federal_register_of_legislation:F2024C00046:body:0:p63
Version: federal_register_of_legislation:F2024C00046
Segment Type: other
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Character Range: 163475–166413

to certain disclosures specified by the Standard.
BC6 The Board issued Exposure Draft ED 262 Fair Value Disclosures of Not-for-Profit Public Sector Entities in May 2015.  ED 262 exposed for public comment the Board's proposals to relieve not-for-profit public sector entities from certain disclosures specified by AASB 13, including the Board's rationale for its proposals.  Following the consultation period, and after considering constituent comments received on the Exposure Draft, the Board decided to proceed with its proposals to make amendments to AASB 13 to relieve not-for-profit public sector entities from disclosing, for assets within the scope of AASB 116 that are primarily held for their current service potential rather than to generate future net cash inflows:
(a) for recurring and non-recurring fair value measurements categorised within Level 3 of the fair value hierarchy, quantitative information about the significant unobservable inputs used in the fair value measurement;
(b) for recurring fair value measurements categorised within Level 3 of the fair value hierarchy, the amount of the total gains and losses for the period included in profit or loss that is attributable to the change in unrealised gains or losses relating to the assets held at the end of the reporting period, and the line item(s) in profit or loss in which those unrealised gains or losses are recognised; and
(c) for recurring fair value measurements categorised within Level 3 of the fair value hierarchy, a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs if a change in those inputs to a different amount might result in a significantly higher or lower fair value measurement.  Where there are interrelationships between those inputs and other unobservable inputs used in the fair value measurement, the disclosure of a description of those interrelationships and of how they might magnify or mitigate the effect of changes in the unobservable inputs on the fair value measurement will also not be required.
BC7 The Board intends to revisit the relief pending the outcome of related current Board projects, including its projects on the review of the Reduced Disclosure Regime (Tier 2), Australian Reporting Framework, and Conceptual Framework, to assess the extent to which outcomes from those projects address the factors that led to the Board's decisions noted above.  The Board acknowledged that constituents also had other concerns with applying AASB 13, including various measurement concerns.  The Board noted that these issues were beyond the scope of the current narrow-scope project, but would be considered as part of a broader future Board project.

Significant issues

Property, plant and equipment held by not-for-profit public sector entities
BC8 The Board discussed the prevailing practice in the Australian not-for-profit public sector, compared to other sectors,