Document ID: chunk:federal_register_of_legislation:F2025C00172:body:0:p78
Version: federal_register_of_legislation:F2025C00172
Segment Type: other
Provision Reference: 
Character Range: 203435–206395

power to appoint members of the statutory authority's governing council to the Department head;

    * the appointment of the authority's chief executive by the governing council does not require Ministerial approval;

    * the State Government has delegated the power to approve the major decisions to the Department head; and

    * assessments of the Department's performance encompass the performance of the statutory authority.

In this example, the scope of the decision-making authority held by the Department has increased significantly as a result of the delegations by the State Government to the Department head.  As the Department acts as a principal under the delegations, the Department has the current ability to direct the relevant activities of the authority so as to achieve the health service objectives of the Department.  As the Department also has the ability to use its power over the authority to affect the nature and amount of the Department's returns, the Department controls the statutory authority.

The Department would consolidate the statutory authority into its consolidated financial statements.  The Department's consolidated financial statements would then be consolidated into the whole of government financial statements.

Australian application guidance
This Australian application guidance accompanies, but is not part of AASB 10.

Exemption from presenting consolidated financial statements
AG1 The following table summarises the circumstances in which the exemption from presenting consolidated financial statements set out in paragraphs 4-Aus4.2 of this Standard may be available to a parent entity.  The exemption is available only if the requirements of those paragraphs are satisfied.  For example, the exemption is not available to a parent entity if it is a disclosing entity.

Same type of entity – same tier
Ultimate or Intermediate Parent  FP – Tier 1  FP – Tier 2  NFP – Tier 1  NFP – Tier 2
Parent                           FP – Tier 1  FP – Tier 2  NFP – Tier 1  NFP – Tier 2
Exemption                        Available*   Available    Available     Available

Same type of entity – different tier
Ultimate or Intermediate Parent       FP – Tier 1  FP – Tier 2    NFP – Tier 1  NFP – Tier 2
Parent                                FP – Tier 2  FP – Tier 1    NFP – Tier 2  NFP – Tier 1
Exemption                             Available*   Not available  Available     Not available

Different type of entity – same tier
Ultimate or Intermediate Parent       FP – Tier 1   FP – Tier 2   NFP – Tier 1    NFP – Tier 2
Parent                                NFP – Tier 1  NFP – Tier 2  FP – Tier 1     FP – Tier 2
Exemption                             Available*    Available     Not available^  Available

Different type of entity – different tier
Ultimate or Intermediate Parent            FP – Tier 1   FP – Tier 2    NFP – Tier 1  NFP – Tier 2
Parent                                     NFP – Tier 2  NFP