Document ID: chunk:federal_register_of_legislation:F2025C00172:body:0:p92
Version: federal_register_of_legislation:F2025C00172
Segment Type: other
Provision Reference: 
Character Range: 242482–245361

applying AASB 10 (which replaces AASB 127, in part) in a not-for-profit context.  Based on the research findings and the nature of many of the issues identified, the Board concluded that the principles in AASB 10 could be applied in a not-for-profit context, albeit using professional judgement, and that certain aspects of those principles and the terminology adopted warranted specific implementation guidance for not-for-profit entities.
BC4 In addition, the Board noted that some of the issues identified through the research are fundamental to the notion of control and therefore beyond the scope of AASB 10.  These issues include:
(a) the nature of government departments as reporting entities;
(b) the role that disclosure of disaggregated information in whole of government financial reports might play in providing relevant information to users; and
(c) control of assets.
BC5 The Board concluded that, because they are beyond the scope of AASB 10 and would not impede the application of AASB 10 by not-for-profit entities, these issues do not need to be addressed prior to clarifying for not-for-profit entities the application of the notion of control in AASB 10.  The Board noted that this approach is consistent with its policy of transaction neutrality.  Accordingly, the Board decided to progress its Control in the Not-for-Profit Public and Private Sectors project in stages.  The first stage, completed by the issue of this Standard, is intended to clarify the application of AASB 10 (and AASB 12) in a not-for-profit context.  It is expected that later stages will address the associated fundamental issues noted above.
BC6 The Board also noted the current project of the International Public Sector Accounting Standards Board (IPSASB) to update its consolidation, joint ventures and associates Standards for the issuance of IFRS 10 Consolidated Financial Statements and its related IFRSs.  The IPSASB published its Exposure Drafts in October 2013, but the AASB decided to finalise the implementation guidance for AASB 10 and AASB 12, having considered the decisions of the IPSASB as it developed its Exposure Drafts.
BC7 Since the implementation guidance does not change or depart from the principles in AASB 10, the types of harmonisation differences between AASB 10 and the ABS GFS Manual are not affected by the guidance.  Accordingly, pre-existing GAAP/GFS differences were not addressed in ED 238.
BC8 The remainder of this Basis for Conclusions outlines the basis for the Board's decisions relating to the first stage of the project.

Significant issues

Nature and location of guidance relating to AASB 10
BC9 The Board considered whether the implementation guidance to be added to AASB 10 should be integrated into the body of that Standard as Aus paragraphs.  The Board decided that, in general, consistent with a principles-based approach to drafting