Document ID: chunk:federal_register_of_legislation:F2023L00010:body:0:p51
Version: federal_register_of_legislation:F2023L00010
Segment Type: other
Provision Reference: 
Character Range: 136710–139619

example would be measured at nil), but include a disclosure note explaining why the asset is being used in a manner that differs from its highest and best use, in accordance with paragraph 93(i) of AASB 13.
BC118        The Board noted that paragraph 31(a)(iii) of AASB 13 states that: "assumptions about the highest and best use of a non-financial asset shall be consistent for all the assets (for which highest and best use is relevant) of the group of assets or the group of assets and liabilities within which the asset would be used." In relation to the question from the group of stakeholders noted in paragraph BC113, the Board noted a view that, consistent with paragraph 31(a)(iii) of AASB 13, it would be inappropriate for land and its improvements to have two different highest and best use assumptions if they are used in combination to maximise value to market participants.
BC119        The Board also noted that paragraph 17 of AASB 101 Presentation of Financial Statements states that to achieve a fair presentation of financial statements, an entity is required 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." The Board noted a view that, if an entity considers the current value of those improvements based on their current use and periodic depreciation is important to users of financial statements, it would consider whether it should disclose this information to comply with paragraph 17 of AASB 101.

Market participant assumptions about a non-financial asset not held primarily for its ability to generate net cash inflows (paragraphs F2–F7)

Market participants for the subject asset
BC120        Consistent with IFRS 13, when measuring the fair value of an asset under AASB 13, the objective is to estimate an exit price from the perspective of a market participant for the asset at the measurement date. Therefore, fair value assumes that a market participant's assumptions when pricing an asset are identifiable.
BC121        Some stakeholders expressed the view that, in some cases, a market participant for a non-financial asset of a not-for-profit public sector entity not held primarily for its ability to generate net cash inflows is not readily identifiable. This is because the services provided by such an asset sometimes are unique; and therefore, they argued that:
(a)                    there would not be a private sector entity, another government or another not-for-profit public sector entity that would provide such services; and, in turn,
(b)                   there would not be another identifiable market participant for many assets held by not-for-profit public sector entities. Therefore, the market selling price