Document ID: chunk:federal_register_of_legislation:F2025C00172:body:0:p103
Version: federal_register_of_legislation:F2025C00172
Segment Type: other
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Character Range: 272241–275221

and social objectives.  However, the political and social barriers (see paragraph IG13) to passing such legislation mean that the government realistically would not have the ability to exercise such power, and thus the power would not represent substantive rights.

ACNC requirements
BC51 Some respondents to ED 238 commented that, in determining the application of AASB 10 to not-for-profit entities, the Board should have regard to the financial reporting requirements of the Australian Charities and Not-for-profits Commission (ACNC).
BC52 The Board considered the requirements for annual financial reports under the Australian Charities and Not-for-profits Commission Act 2012 (ACNC Act) and the Australian Charities and Not-for-profits Commission Regulation 2013 (ACNC Regulation), in particular Subdivisions 60-C 'Annual financial reports' and 60-G 'Collective and joint reporting' of the ACNC Act and Subdivisions 60-B 'Requirements for annual financial reports (core rules)' and 60-C 'Requirements for annual financial reports (special rules)' of the ACNC Regulation.  For example, under joint reporting, two or more registered entities may be permitted to prepare and lodge a single financial report, which might or might not be consistent with the AASB 10 requirements for consolidated financial statements.  Collective reporting would not be consistent with AASB 10.
BC53 The Board also noted that section 60.30 of the ACNC Regulation requires a registered entity to prepare a special purpose financial statement, if it is not required to and does not propose to prepare a general purpose financial statement.  The Board's focus in setting accounting standards is on general purpose financial statements rather than special purpose financial statements.
BC54 The Board acknowledges that regulators might impose financial reporting requirements that differ from AASB Standards for their own regulatory purposes.  The Board noted that the ACNC requirements would be expected to coincide with AASB Accounting Standards in most cases.  However, the ACNC may permit registered entities to depart from AASB 10 in limited circumstances.  The Board decided that it would not be appropriate for its requirements for general purpose financial statements to reflect those limited circumstances.

[1] Paragraph C7 of AASB 10 Consolidated Financial Statements states "If an entity applies this Standard but does not yet apply AASB 9, any reference in this Standard to AASB 9 shall be read as a reference to AASB 139 Financial Instruments: Recognition and Measurement."
[2]  AASB Policy Statement Policies and Processes March 2011, paragraph 7
[3]  AASB 101 paragraph 17(c) requires an entity to provide additional disclosures when compliance with the specific requirements in Australian Accounting Standards is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance.