Document ID: chunk:federal_register_of_legislation:F2025C00172:body:0:p97
Version: federal_register_of_legislation:F2025C00172
Segment Type: other
Provision Reference: 
Character Range: 255855–258788

stated that a government will usually control statutory authorities that it has established through legislation.  This circumstance has been addressed through paragraph IG7 in respect of whether the government has power over an entity established through legislation.  Power is just one of the control criteria.
BC26 Restrictions on the allocation of funds between activities and the existence of separate administrations are listed in paragraph Aus17.7 as factors that may affect the ability of an entity to deploy resources and should be considered in determining the existence of a group in the public sector.  The ability to deploy resources is relevant to assessing whether an investor has power over an investee (see paragraph IG5).  Restrictions on the ability to deploy resources may reflect barriers that prevent the holder of rights from exercising them.  Examples of barriers are listed in paragraph B23, including operational barriers and legal or regulatory requirements.
BC27 Paragraph Aus17.8 noted that for a government to control an entity, it must have the power to require the entity's assets to be deployed towards achieving the government's objectives, and listed various actions that the government might be able to direct in respect of the controlled entity's assets.  Whether these circumstances result in the government controlling the entity under AASB 10 would depend on whether the government has power to direct the relevant activities of the entity.  The actions listed are broadly consistent with the activities listed in paragraph B11 that can be relevant activities of an investee, depending on the circumstances of the investee.
BC28 Paragraph Aus17.9 outlined a range of circumstances in which a government does not control another entity, such as an entity dependent on government funding but able to decide whether to accept resources from the government and how to use the resources (paragraphs Aus17.9(a) and (c)).  These examples are no longer needed as paragraphs IG11 and IG12 concerning economic dependence and paragraph IG20 in respect of congruent objectives adequately address the issues.
BC29 Paragraph Aus17.9(b) stated that a government acting as the trustee of a trust would not control the trust as it would not be able to deploy the resources of the trust for its own benefit.  In contrast, the implementation guidance includes an example of a trust that is controlled through the trustee (paragraph IG22).  Under AASB 10, the investor's returns from a trust may be indirect non-financial returns, which the former guidance did not acknowledge.
BC30 Regulatory powers were addressed in paragraph Aus17.9(d) as not giving rise to control of regulated entities.  Paragraph IG16 states that regulatory powers may represent either substantive rights (which could result in control of regulated entities) or protective rights (which would not result in control).  Examples of protective