Document ID: chunk:federal_register_of_legislation:F2023C00394:body:0:p34
Version: federal_register_of_legislation:F2023C00394
Segment Type: other
Provision Reference: 
Character Range: 89421–92397

BC25 The Board considered whether amendment was necessary to AASB 124, for example, to paragraphs 5 and 27, to add a public sector perspective to the Standard.  The Board decided that amendment was not necessary in this regard and that the addition of limited implementation guidance in respect of not-for-profit public sector entities would provide a sufficient public sector perspective to the Standard.
BC26 For example, the Board considered whether an alternative definition (to that in Appendix A of AASB 3 Business Combinations) for the term 'business' in paragraph 5 of AASB 124 was necessary.  The Board decided that an alternative definition is not required, which is consistent with its decision when it reissued AASB 3 in March 2008.  In the Board's view, the term 'business' can be read broadly.  In particular, the phrase "lower costs or other economic benefits directly to investors or other owners, members or participants" in the definition of 'business' in AASB 3 is broad and can be applied by not-for-profit public sector entities.

Extending the disclosures of key management personnel of public sector entities
BC27 In finalising the amendments, the Board considered requests from some public sector constituents for additional disclosures (such as salary banding disclosures) for key management personnel in the public sector.  Some constituents also queried whether additional disclosures similar to those required by section 300A of the Corporations Act 2001 of key management personnel of listed companies should be required in respect of key management personnel of government business enterprises, based on the view that for-profit government business enterprises should be regarded as at least as publicly accountable as such entities.
BC28 The Board follows a policy of transaction neutrality in the requirements in Standards.  Therefore, the Board decided not to require any compensation or other related party disclosures for key management personnel of public sector entities in addition to those specified of key management personnel of private sector entities, including in instances where a not for profit public sector entity has availed itself of the relief in paragraph 17A of AASB 124.  The Board was not convinced that there was a not for profit sector specific reason to impose disclosures that exceed the requirements for for-profit entities.

Reduced disclosure requirements
BC29 The Board considered whether amendment was required to the reduced disclosure requirements specified in paragraph Aus1.11 for application by not-for-profit public sector entities, and decided that no amendment was necessary in this regard.  Accordingly, the reduced disclosure requirements set out in AASB 124 that apply to Tier 2 not-for-profit public sector entities are the same as those applying to other Tier 2 entities.

Application date and transitional provisions
BC30 The Board considered the application date and transitional provisions of the