Document ID: chunk:federal_register_of_legislation:F2023C00188:reg:7:p76
Version: federal_register_of_legislation:F2023C00188
Segment Type: reg
Provision Reference: reg 7 (pt 76/91)
Character Range: 215430–218437

requirements to help an entity meet the disclosure objective.  The Board observed that those disclosures should not be viewed as a checklist of minimum disclosures, because some disclosures may be relevant for some entities but may be irrelevant for others.  The Board also observed that it is important for an entity to consider the adequacy of its disclosures having regard to the disclosure objective, and materiality.

BC122        In its redeliberations, the Board considered the adequacy of the disclosures proposed in ED 260, having regard to its other decisions on the project (for example, to require a liability to be recognised in respect of certain transfers to enable an entity to construct a non-financial asset for its own use), and in response to constituent feedback on the proposed disclosures.  The Board decided to finalise some disclosures in a form different to that proposed, and include certain specified additional disclosures, as well as encouraging other disclosures.

Volunteer services and donated inventory

BC123        In its redeliberations on ED 260, the Board observed that the operations of many not-for-profit entities rely heavily upon volunteer services and/or donated inventories.  The Board considered that users of a not-for-profit entity's financial statements would find it useful to understand the contribution made by such donations to the achievement of the entity's objectives during the reporting period and the entity's dependency on donated inventories and volunteer services for the future achievement of its objectives.

BC124         The Board observed that it had not proposed a disclosure of this nature as part of ED 260 nor received much feedback seeking such disclosure.  In addition, the Board considered whether requiring disclosure of an entity's dependency on volunteer services as part of this project may be seen as pre-empting the outcomes of the Board's project on Reporting Service Performance Information and a possible future project relating to volunteer services (see paragraph BC112 above).  Accordingly, the Board decided to encourage entities to disclose qualitative information about the entity's dependence on volunteer services (recognised and unrecognised) and donated inventory held but not recognised as assets.

Transfers to enable an entity to acquire or construct a recognisable non-financial asset to be controlled by the entity

BC125        Consistent with the Board's decision to include requirements in AASB 1058 that substantially mirror those in AASB 15 for transfers to enable an entity to acquire or construct a non-financial asset to be controlled by the entity, the Board decided to replicate various AASB 15 disclosure requirements in AASB 1058.  The Board noted that these disclosures provide useful information to users of a not-for-profit entity's financial statements and that similar disclosures would have been required had the agreement been determined to be within the scope of AASB 15.

Restrictions on