Document ID: chunk:federal_register_of_legislation:F2024C00046:body:0:p142
Version: federal_register_of_legislation:F2024C00046
Segment Type: other
Provision Reference: 
Character Range: 377507–380489

that the existing Standard was initially required to be applied prospectively, consistent with IFRS 13 Fair Value Measurement. As stated in paragraph BC229 of the Basis for Conclusions on IFRS 13, "… the IASB concluded that a change in the methods used to measure fair value would be inseparable from a change in the fair value measurements (ie as new events occur or as new information is obtained, eg through better insight or improved judgement) ... Therefore, the IASB concluded that IFRS 13 should be applied prospectively (in the same way as a change in accounting estimate)." For the same reason, the Board decided that the modifications to AASB 13 should be applied prospectively.
BC265        The Board considered that the modifications to AASB 13 mainly clarify that Standard, rather than changing its requirements. In applying the modifications, an entity's changing practice in how it measures the fair value of non-financial assets not held primarily for their ability to generate net cash inflows does not indicate an error had been made previously in applying the existing requirements of AASB 13.
BC266        In accordance with paragraphs 37–40 of AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, prospective application of the authoritative implementation guidance would require an entity to:
(a)                    recognise any change in asset values by adjusting the carrying amount of the affected assets and equity items in the period of the change; and
(b)                   disclose the nature and amount of the change in asset values that has an effect in the current period or is expected to have an effect in future periods, except for the disclosure of the effect on future periods when it is impracticable to estimate that effect.

Voluntary restatement of comparative information
BC267        In ED 320, the Board invited comments on whether an option should be provided for not-for-profit public sector entities to elect to restate comparative information to the extent practicable, instead of applying the amendments to AASB 13 prospectively. A majority of those responding to that question disagreed with the provision of such an option, because:
(a)                    restating comparative information about fair values for prior periods would be likely to involve the use of hindsight;
(b)                   a change in fair value should be treated as a change in an accounting estimate (ie prospectively); and
(c)                    it might be confusing for users to understand the fair values presented in financial statements if prior period balances were restated, which would have a flow-on effect to the depreciation amounts previously recognised.
BC268        Having regard to the comments received, the Board decided not to provide an option to restate comparative information upon initial application of the Amending Standard.

Not-for-profit private sector entity consideration
BC269        When developing ED