Document ID: chunk:federal_register_of_legislation:F2021C00884:reg:44:p3
Version: federal_register_of_legislation:F2021C00884
Segment Type: reg
Provision Reference: reg 44 (pt 3/15)
Character Range: 29457–32380

The Board decided not to retain the illustrative general purpose financial reports provided in AASs 27, 29 and 31, because their purpose, which was to provide an educational tool in the initial stages of accrual reporting by local governments, government departments and governments is no longer needed.
BC10            The remainder of this Basis for Conclusions focuses on issues specific to contributions.

Contributions

     General approach
BC11            The Board decided to broadly retain the material on contributions from AASs 27, 29 and 31 and locate it in separate sections within AASB 1004 because it was not adequately covered in existing Australian Accounting Standards.
BC12            The Board concluded that, in the short term, minimal changes should be made to the content of the material.  The Board considered that it is appropriate to review the requirements and guidance for contributions as part of a longer-term project as outlined in the AASB's Public Sector Policy Paper.  A review by the Board of non-exchange income, which will incorporate a review of contributions, is in progress at the time of revision of this Standard.
BC13            The Board considered two options for relocating the requirements on contributions into AASB 1004:
(a)                    merging the AASs 27, 29 and 31 paragraphs into the then existing AASB 1004 requirements; or
(b)                   adding the AASs 27, 29 and 31 paragraphs into the existing AASB 1004 as separate sections.
     The paragraphs in AASs 27, 29 and 31 containing guidance about contributions were very detailed and contained a large amount of commentary whereas the then existing guidance in AASB 1004 was significantly less detailed.  The Board concluded that merging the requirements in AASs 27, 29 and 31 with the AASB 1004 requirements would, in effect, require the redrafting of the entire Standard, which is beyond the scope of this project.  The integration approach was also considered more likely to raise controversial revenue recognition issues for all not-for-profit entities that, as noted in paragraph BC12, the Board will deal with as a separate longer-term project applicable to a broader range of entities.
BC14            The Board also considered whether the guidance from AASs 27, 29 and 31 should be merged into a single set of generic requirements or expressed separately for local governments, government departments or governments.  The Board concluded that the three sets of guidance from AASs 27, 29 and 31 were sufficiently similar to be merged to form one set of requirements – noting that such an approach results in some changes for some entities.  One area where this occurs is the disclosure of contributions, where government departments and governments are now required to make disclosures not previously required, because AAS 27 was more onerous than AASs 29 and 31.
BC15            The Board decided