Document ID: chunk:federal_register_of_legislation:F2023C00394:body:0:p33
Version: federal_register_of_legislation:F2023C00394
Segment Type: other
Provision Reference: 
Character Range: 86721–89656

number of intra-government transactions.  In extending the Standard to apply to not-for-profit public sector entities, the Board considered the extent of transactions for which disclosure may be necessary to comply with paragraph 26 of the Standard.
BC21 In its considerations, the Board had regard to the IASB's reasons for including the partial exemption, being to resolve concerns raised when the Standard was applied in environments where government control is pervasive.  The Board noted that the IASB had indicated that it did not intend to require the entity to identify every government-related entity or to quantify in detail every transaction with such entities, as such a requirement would negate the exemption (see paragraph BC43 of IAS 24).
BC22 The Board noted that it shared the IASB's view communicated in paragraph BC45 of IAS 24.  Paragraph BC45 of IAS 24 states:
BC45 The Board noted that this requirement should not be too onerous for the reporting entity because:
(a) individually significant transactions should be a small subset, by number, of total related party transactions;
(b) the reporting entity should know what those transactions are; and
(c) reporting such items on an exceptional basis takes into account cost-benefit considerations.
Nevertheless, the Board decided to add implementation guidance to the Standard to respond to constituent concerns about the extent of disclosure required by paragraph 26.

Other issues

Applicability to the general government sector
BC23 Respondents to the Exposure Draft sought clarification as to whether related party disclosures would be required in general purpose financial statements of entities in the general government sector (GGS).  The Board noted the requirements in AASB 1049 Whole of Government and General Government Sector Financial Reporting for GGS and whole of government financial statements to be made available at the same time and, if presented separately, to be cross-referenced to each other.  The Board also noted that there may be considerable overlap between the related party disclosures for the GGS and whole of government financial statements, and that exempting GGS entities from the scope of the Standard may reduce complexity and duplication of disclosures.
BC24 The Board noted that the issue of related party disclosures by subsidiary entities is also relevant to for-profit entities, and considered that related party disclosures for the GGS entity need not be the same as the disclosures for the whole-of-government or other public sector entities.  Accordingly, the Board decided that GGS financial statements should not be exempt from complying with the Standard.

Public sector perspective
BC25 The Board considered whether amendment was necessary to AASB 124, for example, to paragraphs 5 and 27, to add a public sector perspective to the Standard.  The Board decided that amendment was not necessary in this regard and that