Document ID: chunk:federal_register_of_legislation:F2023C00188:reg:7:p79
Version: federal_register_of_legislation:F2023C00188
Segment Type: reg
Provision Reference: reg 7 (pt 79/91)
Character Range: 223742–226933

it would consider extending the application of the requirements.

BC132        As part of this project, the Board reviewed the specified disclosures of compliance with parliamentary appropriations and other externally-imposed requirements required of government departments which had been included in AASB 1004 (now deleted from that Standard).  The Board decided, in light of changes in public sector financial management arrangements since originally developing these requirements, to propose extending the scope of disclosures in this regard to include other public sector entities that obtain part or all of their spending authority from parliamentary appropriations.

BC133        In reviewing the disclosures, the Board acknowledged constituent concerns that the interaction between two of the specified disclosures was unclear, as the scope of paragraph 64(e) of AASB 1004 was broader than the scope of paragraph 64(d).  The Board decided to clarify its requirements in this regard by proposing in ED 260:

(a)                    not to carry forward the text of paragraph 64(e) into AASB 1058; and

(b)                   to require disclosure of the financial consequences of an unauthorised expenditure.

BC134        Respondents to the ED were generally supportive of the Board's proposals in this regard.  In its redeliberations, the Board noted a concern raised that by extending the application of these disclosure requirements beyond government departments some might interpret the disclosure requirements as applying to for-profit entities in the public sector.  The Board observed that the scope of AASB 1058 is limited to not-for-profit entities and therefore for-profit public sector entities would not be subject to these disclosures.

BC135        The Board discussed a concern whether the proposed disclosure requirements duplicate existing disclosures in AASB 1055 Budgetary Reporting.  The Board reaffirmed its view that these disclosures contain fundamentally different requirements from AASB 1055 and should be retained, as the disclosures are focused on information concerning how appropriations and other advances received have been expended, rather than the more broadly based requirements in AASB 1055 for actual to budget variance analysis (see paragraph BC28 in AASB 1055).

BC136        In addition, as part of its deliberations, the Board discussed whether to relocate disclosures about a government department's compliance with parliamentary appropriations and other externally-imposed requirements from AASB 1004 to AASB 1054 Australian Additional Disclosures, rather than this Standard.  The Board concluded it would be more user-friendly to include these disclosure requirements in AASB 1058 given the nexus between the income of government departments and appropriated amounts.

BC137        Having regard to the feedback received, the Board decided to finalise the disclosure in this regard largely as exposed in ED 260.

Reduced disclosure requirements (Tier 2)

BC138        The Board decided, in light of its current project to review the principles underlying Tier 2 reporting requirements, not to specify any reduction in applicable disclosures in