Document ID: chunk:federal_register_of_legislation:F2025C00173:body:0:p24
Version: federal_register_of_legislation:F2025C00173
Segment Type: other
Provision Reference: 
Character Range: 61827–64663

parent, investor or venturer in this case would be beyond the scope of the relief available under IFRSs.  However, the relief is available when the not-for-profit entity is not required to apply such inconsistent requirements.  This is indicated by footnote to the table in paragraph AG1 of the Australian application guidance added to AASB 127.  In this case, the for-profit Tier 1 entity would be able to claim compliance with IFRSs in that the relief is within the scope of the relief available under IFRSs.
BC14 The AASB considered the extension of relief to a for-profit Tier 2 parent, investor or venturer that has a not-for-profit ultimate or intermediate parent.  The table in the Basis for Conclusions in ED 205 proposed that relief should be available to a parent, investor or venturer in these circumstances, which appears to be inconsistent with the circumstances addressed in paragraph BC13.  The AASB considered three approaches to addressing the apparent inconsistency:
(a) amend the table proposed in ED 205 to indicate that the relief would not be available;
(b) retain the approach proposed in ED 205, that the relief would be available, and extend the justification in the Basis for Conclusions for this position; or
(c) retain the approach proposed in ED 205 with no amendment to the justification.
BC15 The AASB adopted the approach in paragraph BC14(b), extending the relief, based on its judgement that the relief would be reasonable for Tier 2 parents, investors or venturers despite any differences in the basis of accounting in the consolidated financial statements of the ultimate or intermediate parent that are publicly available.  Typically, the not-for-profit ultimate or intermediate parent would not be able to claim compliance with IFRSs, and the Tier 2 parent, investor or venturer could not do so.

For-profit public sector entities
BC16 The AASB decided that relief would not be available to a parent entity merely because the intermediate parent preparing consolidated financial statements is a for-profit Tier 1 public sector entity unable to claim compliance with IFRSs.  This decision was made on the basis that a for-profit public sector entity may apply requirements in particular Standards, such as AASB 1004 Contributions, and Aus paragraphs in other Australian Accounting Standards that are inconsistent with an IFRS requirement.  However, relief may be available to the parent entity on another basis permitted by the Standard.
BC17 Relief is (or is not) available to a for-profit public sector entity as the parent, investor or venturer on the same basis as for any other for-profit parent, investor or venturer.

Other changes
BC18 The AASB also decided that, consistent with paragraph 10(d) of AASB 127, the references to 'Australian equivalents to IFRSs' in paragraph 13(c)(iv) of AASB