Document ID: chunk:federal_register_of_legislation:F2023C00190:reg:3:p3
Version: federal_register_of_legislation:F2023C00190
Segment Type: reg
Provision Reference: reg 3 (pt 3/3)
Character Range: 83923–88486

not comply with AASB 16 Leases; and

          (e)                    in accounting for revenue, revenue was recognised based on the transfer of risks and rewards or the percentage of completion method in accordance with AASB 118 Revenue,[2] which does not comply with AASB 15 Revenue from Contracts with Customers.

Application of the consolidation and equity accounting requirements

     IG27             In relation to paragraph 9C(d) of this Standard, information about the accounting for subsidiaries and investments in associates and joint ventures is fundamental for a user's understanding of the scope of the financial statements.

     IG28             Exemptions from consolidation of subsidiaries are provided in AASB 10, paragraphs 4(a)-Aus4.2, including when the entity is a wholly-owned subsidiary, its debt or equity instruments are not traded in or to be issued in a public market and its ultimate parent produces consolidated financial statements that are available for public use and comply with accounting standards.  Those charged with governance preparing special purpose financial statements might have other reasons for non-consolidation of some or all of an entity's subsidiaries, and paragraph 9C(d) requires these reasons to be disclosed (see Example 2).

Illustrative examples

     IG29             The following illustrative examples are provided:

Scenario/Example                                                                                                        1           2  3    4
Reporting Framework                                                                                                     Trust deed              
Other document                                                                                                                     
Subsidiaries                                                                                                            Yes           
No                                                                                                                                         
Consolidated                                                                                                            Yes                n/a  n/a
No                                                                                                                                  
Associates / Joint Ventures                                                                                             Yes         
No                                                                                                                                        
Equity accounted                                                                                                        Yes           n/a  n/a  n/a
No
Material accounting policies comply with all recognition and measurement requirements (excluding AASB 10 and AASB 128)  Yes           
No                                                                                                                                         
Financial statements overall comply with all recognition and measurement requirements (excluding AASB 10 and AASB 128)  Yes           
No                                                                                                                                         

     IG30             There are additional illustrative examples in paragraphs IG13 and IG14 of this Standard that may be useful, notwithstanding that they have been prepared for not-for-profit private sector entities.

     IG31             The following examples illustrate how an entity might apply some of the disclosure requirements in paragraph 9C of this Standard, on the basis of the limited facts presented.  Although some aspects of the examples might be present in actual fact patterns, all relevant facts and circumstances of a particular fact pattern need to be evaluated when applying the Standard.

#  Example                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Illustrative disclosure