Document ID: chunk:federal_register_of_legislation:F2021C00884:front:0:p2
Version: federal_register_of_legislation:F2021C00884
Segment Type: other
Provision Reference: 
Character Range: 3045–5649

Public Sector Combinations.
Both AASB 1004 and IPSAS 23 require subject transactions that meet the definition of contributions by owners to be recognised as equity transactions.  The definitions of contributions by owners in the Standards are broadly consistent, however IPSAS 23 takes a more substance-over-form approach and does not address symmetry between a transferor and the transferee in relation to contributions by and distributions to owners.
Restructures of administrative arrangements (which require the transfer of a business) would typically meet the definition of an amalgamation under IPSAS 40.  However, IPSAS 40 specifies measurement requirements, whereas AASB 1004 does not.  AASB 1004 also treats the net transfer between the parties as a contribution by owners or distribution to owners, as applicable.

AASB 1004 and IFRS Standards
Not-for-profit entities that comply with the requirements of AASB 1004 may not simultaneously be in compliance with the requirements of IFRS Standards, which do not explicitly define contributions by owners.  However, restructures of administrative arrangements are business combinations under common control, which are excluded from the scope of IFRS 3 Business Combinations.

Accounting Standard AASB 1004

The Australian Accounting Standards Board made Accounting Standard AASB 1004 Contributions under section 334 of the Corporations Act 2001 on 13 December 2007.

This compiled version of AASB 1004 applies to annual reporting periods beginning on or after 1 July 2021.  It incorporates relevant amendments contained in other AASB Standards made by the AASB up to and including 6 March 2020 (see Compilation Details).

Accounting Standard AASB 1004

Contributions

Application
   1‒
5 [Deleted]
     6 The following table identifies which paragraphs are applicable to each type of entity to which this Standard applies:

Type of entity to which the paragraph is applicable              Content of paragraphs                                Para No.
Government departments                                           Parliamentary appropriations                         32
Liabilities of government departments assumed by other entities  39 – 43A
Contributions by owners and distributions to owners              48 – 53
Restructure of administrative arrangements                       54 – 59
Other government controlled not-for-profit entities              Restructure of administrative arrangements           54 – 59
Local governments and whole of governments                       Contributions by owners and distributions to owners  48 – 53