Document ID: chunk:federal_register_of_legislation:F2023L00010:body:0:p26
Version: federal_register_of_legislation:F2023L00010
Segment Type: other
Provision Reference: 
Character Range: 69467–72436

proceed with the modifications to AASB 13.

Comparison with IFRS 13
BC36            The Board observed that not-for-profit public sector entities complying with this Standard might not comply with IFRS 13.
BC37            This Standard makes the following modifications to the requirements of IFRS 13 adopted in AASB 13, which apply only to fair value measurements of non-financial assets of not-for-profit public sector entities not held primarily for their ability to generate net cash inflows:
(a)                    an entity is required to consider whether an asset's highest and best use differs from its current use only when, at the measurement date, it is:
(i)                     classified as held for sale or held for distribution to owners in accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations; or
(ii)                   highly probable that the asset will be used for an alternative purpose to its current use (see paragraphs Aus29.1 and Aus29.2);
(b)                   an asset's use is 'financially feasible' if market participants would be willing to invest in the asset's service capacity, considering both the capability of the asset to be used to provide needed goods or services to beneficiaries and the resulting cost of those goods or services (see paragraph Aus28.1);
(c)                    if both the market selling price of a comparable asset and some market participant data required to measure the fair value of an asset are not observable, the entity is required to use its own assumptions as a starting point in developing unobservable inputs to measure the fair value of the subject asset and adjust those assumptions to the extent that reasonably available information indicates that other market participants would use different data (see paragraphs F5 and F11(b)); and
(d)                   if an asset is measured using the cost approach, the entity is required:
(i)                     to assume that the asset will be replaced in its existing location, even if it would be feasible to replace the asset in a cheaper location at the measurement date (see paragraph F11(a)); and
(ii)                   not to identify economic obsolescence for the asset if the asset contains 'surplus capacity' necessary for stand-by or safety purposes (see paragraph F17).
BC38            IFRS 13 does not specify:
(a)                    that the entity's own data is required to be used as a starting point under certain circumstances. IFRS 13 paragraph 89 states that the entity's own data may be used as a starting point when developing unobservable inputs;
(b)                   any specific criteria for determining when market or other factors suggest that an alternative use of an asset by market participants would be the asset's highest and best use. Consequently, the modification of AASB 13 in paragraphs Aus29.1 and Aus29.2 – specifying that an entity is required to consider whether the asset's highest