Document ID: chunk:federal_register_of_legislation:F2025C00172:body:0:p91
Version: federal_register_of_legislation:F2025C00172
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also has the potential to promote structuring opportunities to avoid consolidation. In turn, this would be to the detriment of providing useful, comparable information to users of financial statements.
DO4 We believe that providing exceptions to principles further complicates accounting, introduces unjustified complexity to financial statements and reduces comparability of entities' financial reports across sectors. It also creates a precedent for further, less rigorous standard-setting.
DO5 For Australia, the exception to consolidation would require de-consolidation of controlled entities when Australia has been well-served by the control principle and has been relatively free of criticism of off-balance-sheet accounting.
DO6 Additionally, we have not heard from users of financial statements of investment entities in Australia that consolidation information is not useful or relevant for decision-making.
DO7 Furthermore, if the fair values of controlled investments held by investment entities are relevant, we are of the view that they could be provided as supplementary disclosures in financial statements, consistent with the disclosure requirements in AASB 7 Financial Instruments: Disclosures for financial instruments with carrying amounts that differ from their fair value.

Basis for Conclusions on AASB 2013-8
This Basis for Conclusions accompanies, but is not part of, AASB 10. The Basis for Conclusions was originally published with AASB 2013-8 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Entities – Control and Structured Entities.

Background
BC1 This Basis for Conclusions summarises the Australian Accounting Standards Board's considerations in reaching the conclusions in this Standard.  Individual Board members gave greater weight to some factors than to others.
BC2 Before finalising the implementation guidance set out in this Standard, the Board issued Exposure Draft ED 238 Consolidated Financial Statements – Australian Implementation Guidance for Not-for-Profit Entities in March 2013.  ED 238 proposed for public comment implementation guidance for not-for-profit entities in respect of both AASB 10 Consolidated Financial Statements and AASB 12 Disclosure of Interests in Other Entities.  The Board considered the submissions received in response to ED 238 in deciding the implementation guidance to be added to those Standards.
BC3 In the process of developing the proposals in ED 238, the Board commissioned research into the implementation issues that had been encountered by not-for-profit entities in applying the notion of control (and related public sector guidance) in the superseded Accounting Standard AASB 127 Consolidated and Separate Financial Statements.  Discussions were also held with constituents experienced in not-for-profit public sector and private sector financial reporting, to ascertain implementation issues that might be encountered in applying AASB 10 (which replaces AASB 127, in part) in a not-for-profit context.  Based on the research findings and the nature of many of the issues identified, the Board concluded that the principles in AASB 10 could be applied in