Document ID: chunk:federal_register_of_legislation:F2024C00046:body:0:p62
Version: federal_register_of_legislation:F2024C00046
Segment Type: other
Provision Reference: 
Character Range: 160696–163741

periods beginning on or after 1 January 2013.  In 2014, the Board received feedback about AASB 13 from not-for-profit public sector entities following their implementation of the Standard, including feedback about some of the specified disclosures.  These constituents were concerned that the costs of presenting the disclosures specified by the Standard, including potential disclosure overload for users of not-for-profit public sector general purpose financial statements, exceeded their benefits.  The Board noted that it had considered similar issues in 2011 when making AASB 13, and had decided that no amendment to AASB 13 was necessary.  However, following the feedback received, the Board decided, as a narrow scope project, to revisit whether some disclosure relief should be made available to not-for-profit public sector entities.
BC3 The Board undertook targeted outreach in late 2014 to further understand which disclosures were of concern to not-for-profit public sector entities, in particular, local governments, and the reasons for their concern.  The Board's outreach activity included feedback from government entities, valuation experts and auditors.  The Board received mixed feedback as to whether disclosure relief was necessary at this time.
BC4 In December 2014, the Board decided to limit its consideration of disclosure relief to:
(a) assets within the scope of AASB 116 Property, Plant and Equipment that are primarily held for their current service potential (for example, roads and water supply infrastructure) rather than to generate future net cash inflows; and
(b) disclosures in AASB 13 that apply solely to fair value measurements categorised within Level 3 in the fair value hierarchy.  These disclosures help meet the objective noted in paragraph 91(b) of the Standard of providing users with information as to how fair value measurements using significant unobservable inputs affected profit or loss or other comprehensive income for the period, by requiring disclosure of information about the relative subjectivity of the fair value measurement.
BC5 The Board concluded that the feedback received did not suggest that a wider project scope was necessary to address matters raised about fair value disclosures (see also paragraphs BC7, BC18 and BC19).  In April 2015, the Board evaluated these disclosures against its Process for Modifying IFRSs for PBE/NFP ('Process').  The Process allows for departures from the requirements of the equivalent International Financial Reporting Standard (IFRS) where not-for-profit specific reasons for the departure exist.  The Board concluded that, for the interim, in relation to these assets, it is appropriate to depart from its policy of transaction neutrality for cost-benefit reasons in relation to certain disclosures specified by the Standard.
BC6 The Board issued Exposure Draft ED 262 Fair Value Disclosures of Not-for-Profit Public Sector Entities in May 2015.  ED 262 exposed for public comment the Board's proposals to relieve not-for-profit public sector