Document ID: chunk:federal_register_of_legislation:F2023L00010:body:0:p91
Version: federal_register_of_legislation:F2023L00010
Segment Type: other
Provision Reference: 
Character Range: 245064–248210

review of relevant documentation (eg legal and other), the association determines that the fiduciary responsibility to meet the donor's restriction would not be transferred to market participants if the association sold the asset"; and
(b)                   that example did not include consideration of the zoning of the land and the likelihood that the zoning would change as stated in paragraph 140.5 of International Valuation Standard IVS 104 Bases of Value.
BC259        The Board considered that financial statement preparers, auditors and valuers need to apply judgement, based on the circumstances of each asset, in determining whether a restriction imposed on an asset would transfer to market participants. Therefore, the Board decided not to add that IASB example to AASB 13.

Other measurement issues
BC260        Some stakeholders asked the Board to provide guidance regarding the following:
(a)                    treatment of changes in an asset's estimated remaining service potential;
(b)                   treatment of damage of an asset;
(c)                    allocating the fair value of groups of assets measured under the income approach to component assets;
(d)                   treatment of deferred maintenance expenditure; and
(e)                    unit of account for an infrastructure asset.
BC261        The Board noted that none of the issues in paragraph BC260 represents a justifiable circumstance under the AASB Not-for-Profit Entity Standard-Setting Framework that would require not-for-profit-specific modifications or guidance. This is because:
(a)                    those issues are not specific to not-for-profit entities and the IASB did not provide any further guidance on those issues; and
(b)                   there does not appear to be any gap or other flaw in existing pronouncements that would cause financial statements of not-for-profit public sector entities to inadequately reflect the objectives and qualitative characteristics of financial reporting or not reflect economic reality.
BC262        The Board considered that some of those issues relate to detailed valuation assessments, and specific guidance on them should not be included in Australian Accounting Standards. The Board also considered that the treatment of many of the issues would depend on facts and circumstances, and the role of principles-based Standards does not include providing detailed guidance about the various outcomes that can arise.

Effective date and application

Prospective application
BC263        In accordance with paragraph 7.9.2 of the AASB Due Process Framework for Setting Standards, the Board decided that the modifications to AASB 13 made by this Standard should be applied prospectively for annual periods beginning on or after 1 January 2024.
BC264        The Board noted that the existing Standard was initially required to be applied prospectively, consistent with IFRS 13 Fair Value Measurement. As stated in paragraph BC229 of the Basis for Conclusions on IFRS 13, "… the IASB concluded that a change in the methods used to measure fair value would be inseparable from a change in the fair