Document ID: chunk:federal_register_of_legislation:F2023L00010:body:0:p22
Version: federal_register_of_legislation:F2023L00010
Segment Type: other
Provision Reference: 
Character Range: 58510–61649

to users of financial statements of not-for-profit public sector entities current values based on mixed measurement bases, which would reduce the comparability and understandability of the totals reported.
BC19            At the date of issue of this Standard, the IPSASB was continuing to develop a Measurement Standard and related amendments to its Conceptual Framework based on its proposals in ED 76 and ED 77.

Stakeholder feedback on AASB ED 320
BC20            The Board considered the comments received on ITC 45 and continued developing guidance to assist not-for-profit public sector entities to apply the principles of AASB 13 more consistently in measuring their non-financial assets not held primarily for their ability to generate net cash inflows, in addressing the stakeholders' requests noted in paragraph BC7.
BC21            The Board issued Exposure Draft ED 320 Fair Value Measurement of Non-Financial Assets of Not-for-Profit Public Sector Entities in March 2022 to propose adding authoritative implementation guidance on how to apply the following principles in measuring the fair value of a non-financial asset not held primarily for its ability to generate net cash inflows:
(a)                    the market participant assumptions to use;
(b)                   the circumstances in which the asset's current use is presumed to be its highest and best use;
(c)                    the 'financially feasible use' aspect of highest and best use (AASB 13 paragraph 28(c)); and
(d)                   how to measure the current replacement cost of such a non-financial asset, including the nature of component costs to include in that amount, the factors to consider in identifying economic obsolescence, and whether current replacement cost should be measured assuming the asset's replacement occurs in its existing location.
BC22            Another key purpose of developing additional guidance is to enable application of AASB 13 in a more cost-effective manner by clarifying its application, including clarifying the extent to which preparers of financial statements need to search for information in the absence of observable market inputs.
BC23            ED 320 was exposed for 90 days, and the Board conducted three virtual roundtables to elicit feedback on the proposals. The Board received sixteen written submissions and observed that:
(a)                    other than one respondent who disagreed with most aspects of the ED 320 proposals, generally, stakeholders supported modifying AASB 13 (to varying degrees) to assist not-for-profit public sector entities in applying the principles noted in paragraph BC21; but
(b)                   significant refinements would be needed in the drafting of the modifications to address potential application issues.
BC24            The Board considered the feedback on ED 320 and revised the drafting of the modifications. The Board developed a Fatal-Flaw Review draft version of the Standard to identify any unintended consequences of the revisions made to the proposed modifications.

Stakeholder feedback on the Fatal-Flaw Review draft version
BC25            In