Document ID: chunk:federal_register_of_legislation:F2023C00188:reg:7:p74
Version: federal_register_of_legislation:F2023C00188
Segment Type: reg
Provision Reference: reg 7 (pt 74/91)
Character Range: 209920–212910

of information about volunteer services be reconsidered by the Board.

BC111        The Board considered how to progress its consideration of the accounting for volunteer services, having regard to the feedback received.  The Board noted further consideration and due process would be required before it could finalise any broad changes to the current accounting requirements in this regard.  Accordingly, the Board decided, as a short-term solution, to finalise the recognition and measurement proposals largely unamended from those exposed.  (See also paragraphs BC123–BC124 below.)

BC112        The Board expects to consider the accounting requirements for volunteer services as part of a separate future project.

Receipts of inventory

BC113        ED 260 proposed that an assessment of whether a transfer of inventory for no consideration is material for recognition should be made at a transaction level, and need not be reassessed at another unit of account, such as at a portfolio of similar transactions.  The Board considered such a treatment would be likely to achieve a better balance of costs and benefits having regard to the extent of transfers of goods for no consideration to charities.

BC114        The Board sought specific feedback from constituents as to its proposed approach to the recognition and measurement of inventories donated other than as part of a contract with a customer.  Most expressed support for the proposal to assess materiality of a donation of inventory at the transaction level rather than at a portfolio level.

BC115        In its redeliberations, the Board observed that it had presented its discussion on materiality in ED 260 both within the general principles for recognition and within specific requirements pertaining to donated inventory.  The Board confirmed it had not intended to propose that materiality should only be assessed at a transaction level for all transactions (for example, volunteer services or small grants of non-financial assets), as evidenced by its specific question pertaining to inventory and requirements of volunteer services.

BC116        The Board considered whether further due process is necessary if the final pronouncement limited the proposal that materiality need only be assessed at the transaction level, rather than also at a portfolio level, only to donations of inventory, rather than all inflows of assets.  The Board decided that no further due process is necessary, as not finalising its proposals in that regard would, in the main, maintain the current status quo.  In addition, the Board decided to express the relief in this regard as a practical expedient, rather than a requirement.

BC117        AASB 101 defines materiality as "omissions or misstatements of items are material if they could, individually or collectively, influence the economic decisions that users make on the basis of the financial statements".  The Board observed that materiality is commonly understood as applying