Document ID: chunk:federal_register_of_legislation:F2023C00394:body:0:p29
Version: federal_register_of_legislation:F2023C00394
Segment Type: other
Provision Reference: 
Character Range: 75837–78882

(e) adding a public sector perspective to AASB 124, for example by inserting an alternative definition for the term 'business' in paragraph 5 of AASB 124; and
(f) extending the disclosure requirements in AASB 124 for key management personnel.
Each of these issues and the outcome of the Board's considerations are noted below.
BC7 In finalising its proposals, the Board also considered constituent feedback for implementation guidance to be developed to assist not-for-profit public sector entities in applying AASB 124.  The Board noted that while some information about Ministerial or senior executive compensation or related party transactions may be disclosed pursuant to other legislation or directives, the requirement to apply AASB 124 will be the first time that information about a not-for-profit public sector entity's related parties is specified by Australian Accounting Standards for inclusion in its general purpose financial statements.  Consequently, such entities may not have previously considered challenges in implementing the Standard's requirements in a not-for-profit public sector environment.  The Board considered that these entities may also have difficulty in identifying and determining the extent of the information necessary to meet the objective of AASB 124, as described in paragraph 1 of the Standard.  Accordingly, the Board determined that the final amendments would include implementation guidance to assist not-for-profit public sector entities with their implementation of the Standard.

Significant issues

Definition of key management personnel
BC8 The Board considered whether an amendment of the definition of key management personnel for the not-for-profit public sector would be necessary to facilitate a decision to remove the not-for-profit public sector exemption from AASB 124, but decided that the present definition was suitable.  The AASB noted that, in a public sector context, entities should consider the facts and circumstances in assessing whether a person is a member of the key management personnel, as defined, of the entity.
BC9 The Board considered that normally, the determination of key management personnel will be similar for entities in the public sector or the private sector.  For example, a not-for-profit public sector entity will need to determine whether all, or only certain, of its senior executive service employees meet the definition of key management personnel.  However, the Board acknowledged constituents' concerns that the determination of key management personnel may not be straightforward in the not-for-profit public sector given ministerial-type roles.  The Board noted that it does not regard a Minister to always be a member of the key management personnel of a not-for-profit public sector entity; rather, this is dependent on the particular circumstances of the jurisdiction and of the entity.  Accordingly, the Board decided to add guidance to the Standard, in the absence of a private sector analogy, to assist not-for-profit public sector entities in