Document ID: chunk:federal_register_of_legislation:F2021C00884:reg:44:p1
Version: federal_register_of_legislation:F2021C00884
Segment Type: reg
Provision Reference: reg 44 (pt 1/15)
Character Range: 23782–27101

44                    amended       AASB 2011-8 [102]
44-47                 deleted       AASB 1058 [page 25]
54-57 (and preamble)  amended       AASB 1058 [page 26]
60-68                 deleted       AASB 1058 [page 25]
Appendix B            deleted       AASB 1058 [page 25]
                      added         AASB 1060 [page 66]

Basis for Conclusions

This Basis for Conclusions accompanies, but is not part of, AASB 1004.

Introduction
BC1               This Basis for Conclusions summarises the Board's considerations in revising AASB 1004 Contributions in the context of the Board's short-term review of the requirements in AAS 27 Financial Reporting by Local Governments, AAS 29 Financial Reporting by Government Departments and AAS 31 Financial Reporting by Governments.

Background
BC2             The Board considered it timely to review the requirements in AASs 27, 29 and 31, in particular to:
          (a) review the extent to which local governments, government departments and governments should continue to be subject to requirements that differ from requirements applicable to other not-for-profit entities and for-profit entities contained in Australian Accounting Standards.  The Board concluded that differences should be removed, where appropriate and timely, to improve the overall quality of financial reporting;

          (b) bring requirements applicable to local governments, government departments and governments up-to-date with contemporary accounting thought;

          (c) consider the implications of the outcomes of its project on the harmonisation of Generally Accepted Accounting Principles (GAAP) and Government Finance Statistics (GFS), in particular, on the requirements in AAS 31;

          (d) decide whether the encouragements in AASs 27, 29 and 31 should be made mandatory or removed; and

          (e) remove uncertainty in the application of cross-references to other Australian Accounting Standards and the override provisions in AASs 27, 29 and 31 that made the requirements in AASs 27, 29 and 31 take precedence over other requirements.

BC3               The Board considered the following alternative mechanisms for implementing the approach of updating and improving the requirements for local governments, government departments and governments:
(a)                    review the requirements in AASs 27, 29 and 31 and, where appropriate:
(i)                     amend other Australian Accounting Standards to pick up any issues that are addressed in AASs 27, 29 and 31 that are not adequately addressed in the latest Australian Accounting Standards and have them apply to local governments, government departments and governments; or
(ii)                   create public sector specific topic-based Standards; and consequently withdraw AASs 27, 29 and 31; or
(b)                   review AASs 27, 29 and 31 and re-issue them in light of the latest Australian Accounting Standards, retaining/amending where necessary any issues that are addressed in AASs 27, 29 and 31 that are not adequately addressed in the latest Australian Accounting Standards.
BC4               The Board chose alternative (a) given the improvements in the quality of financial reporting by local governments, government departments and governments since AASs 27, 29 and 31 were first