Document ID: chunk:federal_register_of_legislation:F2023C00389:body:0:p56
Version: federal_register_of_legislation:F2023C00389
Segment Type: other
Provision Reference: 
Character Range: 150106–152927

to a new entity that assumes control over them. The Board noted the potential significant costs and practical difficulties that a fresh start alternative would impose, and therefore concluded that the potential advantages of using the fresh start method for some business combinations among not-for-profit entities would be outweighed by the disadvantages.
BC6 However, the Board noted that the accounting for business combinations may differ depending on whether entities, such as local governments or universities, are commonly controlled. In that regard, the Board confirmed that further work should be undertaken on its longer-term 'control in the public sector' project, which should include consideration of whether local governments or universities within a jurisdiction are subject to common control.
BC7 In the interim, the Board decided to maintain the status quo in respect of accounting for restructures of local governments by substantially incorporating the requirements originally transferred from AAS 27 Financial Reporting by Local Governments to superseded AASB 3 (as amended in December 2007 by AASB 2007-9 Amendments to Australian Accounting Standards arising from the Review of AASs 27, 29 and 31) into revised AASB 3 (March 2008, as amended). The Board noted that the relief carried forward from AAS 27 might be impacted by the progress it makes on its 'control in the public sector' project.
BC8 The Board noted that this approach to restructures of local governments, consistent with its general approach to the short-term review of AASs 27, 29 and 31, is pragmatic and a consequence of the past requirements in AAS 27.
BC9 The Board also considered the amendments made by the New Zealand Financial Reporting Standards Board to revised NZ IFRS 3 Business Combinations (March 2008) in the context of business combinations among not-for-profit entities, including definitions of public benefit entities, business and equity interests. In making its decision, the Board considered the work undertaken to date on Invitation to Comment ITC 14 Not-for-Profit Entity Definition and Guidance, which sought input on using the definition and guidance from NZ IAS 1 Presentation of Financial Statements in Australia. The Board suspended further work on ITC 14 until the development of guidelines that can be used for modifying IFRSs for application by not-for-profit entities. In light of this, the Board decided that no further changes should be made to AASB 3 (March 2008, as amended) in respect of not-for-profit entities.
    [AusCF1]  In respect of AusCF entities, in December 2013 the AASB amended the Framework for the Preparation and Presentation of Financial Statements.
  [1] In paragraphs B56–B62 the term 'share-based payment awards' refers to vested or unvested share-based payment transactions.