Document ID: chunk:federal_register_of_legislation:F2023C00381:reg:25:p9
Version: federal_register_of_legislation:F2023C00381
Segment Type: reg
Provision Reference: reg 25 (pt 9/47)
Character Range: 42915–46220

process of issuing such instruments for trading in a public market.  An entity also has public accountability if it holds assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses.

     BC20            The Board decided that further guidance on these matters, as well as a number of other aspects of the public accountability definition, should be addressed through a public accountability sub-project.  This sub-project will consider, in accordance with The AASB's For-Profit Entity Standard-Setting Framework, whether there should be any changes to the types of entities that are deemed to have public accountability (an Australian decision), whether exemptions from the public accountability definition would be in the Australian public interest and whether additional guidance should be included to assist in interpreting the public accountability definition in an Australian context.

Significant issues

Scope

Entities that may be affected by Phase 1

     BC21            Entities identified by respondents as potentially being affected by Phase 1 included unlisted entities that may be operating in over-the-counter markets (e.g. securitisation trusts), small internally held registered managed investment schemes, certain public sector trust entities, companies raising crowd-sourced equity funding and corporate collective investment vehicles.

Securitisation trusts

     BC22            Securitisation trusts are listed, unquoted special purpose vehicles structured through a trust, established to facilitate the issue of asset-backed securities.  Securitisation trusts are themselves unlisted, however they issue debt instruments which are listed on the ASX and/or another securities exchange.  They have no legislative requirement to prepare financial statements.  Their financial reporting obligations are governed by their trust deed and ASX listing rules, and they may be preparing special purpose financial statements if they have determined in accordance with SAC 1 Definition of the Reporting Entity that there are no external users dependent on their general purpose financial statements.

     BC23            Securitisation trusts undertake over-the-counter (i.e. unquoted) transactions, and while the trustee (a third party) is responsible for maintaining the register of investors, investment is often made via custodian entities, making the ultimate holder of asset-backed securities difficult to identify.

     BC24            Respondents to ITC 39 sought clarification regarding whether securitisation trusts were considered to have public accountability.  For the Board to determine whether or not securitisation trusts are publicly accountable would require an interpretation of facts and circumstances.  Further, the matter would need to be assessed against the principles of the Interpretations and Improvements Model.  The Interpretations and Improvements Model states that issues relating to the interpretation of IFRS Standards would be referred to the 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