Document ID: chunk:federal_register_of_legislation:F2022C00496:body:0:p12
Version: federal_register_of_legislation:F2022C00496
Segment Type: other
Provision Reference: 
Character Range: 29023–31921

Transition
Aus42.1 Not-for-profit entities shall apply paragraph Aus9.1 and measure inventories held for distribution at cost, adjusted when applicable for any loss of service potential, on a prospective basis from the beginning of the annual period to which this Standard is first applied.
Aus42.2 Under paragraph Aus42.1, not-for-profit entities shall make any necessary adjustment to the opening balance of inventories held for distribution, previously carried at the lower of cost and current replacement cost, against opening retained earnings for the current annual period.  Accordingly, comparative information is not adjusted.

Commencement of the legislative instrument
Aus42.3 [Repealed]

Withdrawal of AASB pronouncements
Aus42.4 This Standard repeals AASB 102 Inventories issued in July 2004. Despite the repeal, after the time this Standard starts to apply under section 334 of the Corporations Act (either generally or in relation to an individual entity), the repealed Standard continues to apply in relation to any period ending before that time as if the repeal had not occurred.
[Note: When this Standard applies under section 334 of the Corporations Act (either generally or in relation to an individual entity), it supersedes the application of the repealed Standard.]

Appendix A
Australian defined terms
This appendix is an integral part of AASB 102.
Aus6.1 The following terms are also used in this Standard with the meanings specified.
A not-for-profit entity is an entity whose principal objective is not the generation of profit.  A not-for-profit entity can be a single entity or a group of entities comprising the parent entity and each of the entities that it controls.
In respect of not-for-profit entities, current replacement cost is the cost the entity would incur to acquire the asset at the end of the reporting period.
In respect of not-for-profit entities, inventories held for distribution are assets:
(a) held for distribution at no or nominal consideration in the ordinary course of operations;
(b) in the process of production for distribution at no or nominal consideration in the ordinary course of operations; or
(c) in the form of materials or supplies to be consumed in the production process or in the rendering of services at no or nominal consideration.[1]
Aus8.1 A not-for-profit entity may hold inventories whose future economic benefits or service potential are not directly related to their ability to generate net cash inflows.  These types of inventories may arise when an entity has determined to distribute certain goods at no charge or for a nominal amount.  In these cases, the future economic benefits or service potential of the inventory for financial reporting purposes is reflected by the amount the entity would need to pay to acquire the economic benefits or service potential if this was necessary to achieve the objectives of the