Document ID: chunk:federal_register_of_legislation:F2022C00554:body:0:p62
Version: federal_register_of_legislation:F2022C00554
Segment Type: other
Provision Reference: 
Character Range: 198713–201900

contracts, leases, and sale and privatisation arrangements). The Board also clarified the treatment of previously unrecognised intangible service concession assets and the application guidance regarding public services, for example.

     BC13            The proposed requirements were then finalised in June 2017 in the form of a Pre-Ballot Draft of the Standard. This version, which typically is distributed only to Board members, was also circulated to the respondents to the Fatal-Flaw Review version that had provided substantive comments. Further comments were received from those respondents and were considered by the Board in finalising the Standard. As a result of those comments, for example, the definition of 'service concession arrangement' was extended to refer to the operator being responsible for at least some of the management of the public services provided through the service concession asset, which had featured in the application guidance and in some of the implementation guidance examples. References to land under roads as service concession assets were also added, and the accounting for upgrades and the replacement of major components of service concession assets clarified.

Scope
     BC14            The Board considered various types of arrangements involving public and private sector entities and deliberated whether the Standard should be consistent with IPSAS 32 by applying only to not-for-profit public sector entities.

     BC15            The Board decided that ED 261 should propose application to all public sector entities, rather than being limited to not-for-profit public sector entities, consistent with the Board's policy of transaction neutrality, as applied to public sector grantors of service concession arrangements. The Board noted that this scope would be wider than that of IPSAS 32 as International Public Sector Accounting Standards do not apply to for-profit entities.

     BC16            The Board considered the constituents' feedback on ED 261 and additional outreach, in particular some constituents' concerns that a for-profit grantor applying this Standard may not be able to state that its financial statements comply with International Financial Reporting Standards (IFRS Standards) issued by the International Accounting Standards Board (IASB) (see paragraphs BC124–BC127 for a comparison with IFRS Standards). The Board also noted the constituents' feedback that although they prefer a for-profit entity to be able to state compliance with IFRS Standards when applying this Standard, transaction neutrality across the entire public sector is more important in this instance. The Board therefore reaffirmed its view that the Standard should apply to all public sector entities, whether for-profit or not-for-profit. The Board concluded that this was an appropriate, limited exception to its general policy that compliance with Australian Accounting Standards by for-profit entities would result in compliance with IFRS Standards. The Board noted this approach would reduce or eliminate any incentive for structuring service concession arrangements through for-profit public sector grantors.

Terminology
     BC17