Document ID: chunk:federal_register_of_legislation:F2023C00381:reg:25:p10
Version: federal_register_of_legislation:F2023C00381
Segment Type: reg
Provision Reference: reg 25 (pt 10/47)
Character Range: 45943–48977

International Financial Reporting Interpretations Committee (IFRIC) for its consideration.  However, prior to this, the Board needed to assess the issue against specific criteria, the first of which is whether the issue is widespread and has practical relevance.  As there were only 126 securitisation trusts listed on the ASX (in August 2018), the issue was not considered widespread and therefore would not meet the requirements of the Interpretations and Improvements Model.  The Board also noted that its decision to limit the scope of Phase 1 to entities required by legislation to prepare financial statements would mean that these trusts would be considered as part of Phase 2.

Small internally held registered managed investment schemes (MIS)

     BC25            Some internal registered MIS are currently preparing special purpose financial statements to satisfy the reporting requirements of the Corporations Act 2001 as they have determined in accordance with SAC 1 that there are no external users of their financial statements.  These internal registered MIS only accept investments from other entities within their group, however they are required to be registered under the Corporations Act 2001.  Appendix B of AASB 1053 deems registered MIS to have public accountability.

     BC26            When the Board developed its approach to differential reporting, registered MIS were deemed to be publicly accountable in the Australian context as a means of clarifying the IASB definition of public accountability.  At the time, registered MIS were seen as being the Australian equivalents of mutual funds in other jurisdictions as they were expected to hold assets in a fiduciary capacity for a broad group of outsiders.  However, due to the nature of these internal registered MIS, it is possible that they may not have public accountability as defined, as they may not hold assets in a fiduciary capacity for a broad group of outsiders.  The question of whether all registered MIS should continue to be deemed to have public accountability will be revisited as part of the public accountability sub-project.

Unlisted trusts maintained by State Governments

     BC27            Respondents also identified that some State Governments have established unlisted investment trusts under State legislation to hold investments in various types of assets, such as infrastructure.  Some investments are held in partnership or joint venture with external parties, such as superannuation funds.  These trusts are for-profit public sector entities.  They do not have a legislative requirement to prepare financial statements, with their financial reporting obligations directed by their Trust Deed.

     BC28            These trusts are currently preparing special purpose financial statements on the basis that they are not reporting entities.  However, as they are holding assets in a fiduciary capacity, they may be considered to have public accountability under the definition in the IFRS for SMEs.  The Board noted that