Document ID: chunk:federal_register_of_legislation:F2023C00188:reg:7:p87
Version: federal_register_of_legislation:F2023C00188
Segment Type: reg
Provision Reference: reg 7 (pt 87/91)
Character Range: 245683–248895

constituent concerns about application of the term, the Board decided to invite comment on the defined term "contributions by owners" as part of this project.  The Board did not make a specific proposal regarding the definition of "contributions by owners".  Instead, ED 260 illustrated what a replacement Standard for AASB 1004 would look like without that definition and particular related guidance, and posed related questions including whether a definition of 'contributions by owners' is still necessary, or appropriate.

BC170        In responding to the ED, constituents noted the definition in AASB 1004 can be problematic, identified a need for a definition of contributions by owners and expressed their support for applying the IPSASB definition or using the IPSASB definition as the basis for an Australian definition.  Many respondents considered a definition was necessary to minimise diversity in practice.

BC171        In addition, the majority of respondents to ED 260 responding on this topic supported the withdrawal of Interpretation 1038.

BC172        Having regard to the feedback received, the Board considered whether to:

(a)                    withdraw and not replace the current definition in AASB 1004 and Interpretation 1038;

(b)                   replace the current definition in AASB 1004 with the definition of ownership contributions adopted by the IPSASB, and separately consider whether to retain an amended Interpretation 1038; or

(c)                    address the accounting for contributions by owners as part of a separate project.

BC173        The Board was conscious of the need to finalise its proposals on other aspects of its current project in a timely manner.  The Board considered that developing any amendment to the definition, including ensuring adequate due process, would delay finalisation of its current project.  Accordingly, the Board decided to progress consideration of 'contributions by owners' and the related requirements as part of a separate project.  Consequently, the Board decided to retain, for the interim:

(a)                    the terms 'contributions' and 'contributions by owners' as presently defined in Australian Accounting Standards;

(b)                   the requirements specified in AASB 1004 and AASB Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities with respect to contributions by owners and distributions to owners; and

(c)                    the requirements specified in AASB 1004 with respect to contributions by owners and distributions to owners, including those arising in relation to restructures of administrative arrangements.

GAAP/GFS convergence

BC174        The Board discussed implications of its decisions on GAAP/GFS harmonisation.  The Board noted that differences between Generally Accepted Accounting Principles (GAAP) and Government Finance Statistics (GFS) may arise in relation to the following:

(a)                    timing of recognition of income tax revenue – income tax revenue is recognised under GFS in advance of AASB 1058 (see Appendix C of AASB 9);

(b)                   timing of recognition of property tax revenue – property tax revenue is