Document ID: chunk:federal_register_of_legislation:F2021C00884:reg:44:p2
Version: federal_register_of_legislation:F2021C00884
Segment Type: reg
Provision Reference: reg 44 (pt 2/15)
Character Range: 26818–29711

are not adequately addressed in the latest Australian Accounting Standards.
BC4               The Board chose alternative (a) given the improvements in the quality of financial reporting by local governments, government departments and governments since AASs 27, 29 and 31 were first issued.
BC5               Where the Board identified that the material in AASs 27, 29 and 31 could be improved within time and resource constraints, improvements have been made.  Much of the material in AASs 27, 29 and 31 has been retained substantively unamended.  Improvements will be progressed in due course in line with the AASB's Public Sector Policy Paper Australian Accounting Standards and Public Sector Entities.
BC6               The first stage of the short-term review of the requirements in AASs 27, 29 and 31 was the preparation of a paragraph-by-paragraph analysis of each of AASs 27, 29 and 31, listing each paragraph of each Standard alongside corresponding Standards or other pronouncements that would apply to local governments, government departments or governments in the absence of AASs 27, 29 and 31.  The Board's conclusions and rationale for the treatment of each paragraph in the context of the review were also provided in the analysis.  The Board's primary focus was on dealing with the requirements from the three Standards in such a way as to not leave a vacuum.
BC7               Each paragraph from AASs 27, 29 and 31 was classified as being:
(a)                    no longer needed or adequately dealt with in other Standards;
(b)                   more appropriately dealt with in other Standards; or
(c)                    not adequately and/or appropriately dealt with in other Standards and therefore should be retained or improved and incorporated into other Standards.
     The paragraph-by-paragraph analyses considered by the AASB in developing the Exposure Draft ED 156 Proposals Arising from the Short-term Review of the Requirements in AAS 27, AAS 29 and AAS 31 that gave rise to this Standard are available on the AASB website.  They support, but do not form part of, this Basis for Conclusions.
BC8               In reviewing the paragraphs, the Board noted that some material in AASs 27, 29 and 31 would, under the current style of writing Standards, be located in a separate Basis for Conclusions.  Given the short-term nature of the review of AASs 27, 29 and 31, the Board concluded that explanations of technical issues that both originated in and are being relocated from AASs 27, 29 and 31 should, when appropriate, be located in the body of the Standard to which they are relocated.
BC9               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