Document ID: chunk:federal_register_of_legislation:F2024C00046:body:0:p60
Version: federal_register_of_legislation:F2024C00046
Segment Type: other
Provision Reference: 
Character Range: 155110–158081

college building at fair value using the cost approach. Its furniture and fittings include a kitchen of commercial standard necessary for training student chefs. The kitchen is an essential asset for College A to fulfil its teaching objectives, although it was planned not to be utilised outside the scheduled class times.
In this example, it is assumed that:
    * the kitchen is scheduled to be used four hours per week;
    * the amount of kitchen equipment aligns with the intended number of students per class;
    * the current cost to replace the teaching kitchen with an identical capacity kitchen, less all forms of obsolescence other than any economic obsolescence, is estimated as at the measurement date (30 June 20X3) as $250,000; and
    * if the kitchen requires replacing, College A would replace it with one that has the same physical capacity.
Current replacement cost assessment as at 30 June 20X3
College A assesses whether any economic obsolescence of its teaching kitchen has arisen as at the measurement date (30 June 20X3).
Although the teaching kitchen is operated with less intensity than physically possible, this does not indicate economic obsolescence has arisen. This is because the teaching kitchen is necessary for College A to fulfil its teaching objectives and is achieving the level of output planned. Another college 'stepping into the shoes' of College A would be willing to pay $250,000 to replace the kitchen's service capacity.
Therefore, no economic obsolescence is deducted from the amount of $250,000, which is the kitchen's current replacement cost as at 30 June 20X3.

Compilation details
Accounting Standard AASB 13 Fair Value Measurement (as amended)
Compilation details are not part of AASB 13.
This compiled Standard applies to annual periods beginning on or after 1 January 2024.  It takes into account amendments up to and including 15 December 2022 and was prepared on 18 December 2023 by the staff of the Australian Accounting Standards Board (AASB).
This compilation is not a separate Accounting Standard made by the AASB.  Instead, it is a representation of AASB 13 (August 2015) as amended by other Accounting Standards, which are listed in the table below.

Table of Standards
Standard      Date made    FRL identifier  Commence-ment date  Effective date          Application, saving or transitional provisions
                                                               (annual periods
                                                               … on or after …)
AASB 13       7 Aug 2015   F2015L01613     31 Dec 2017         (beginning) 1 Jan 2018  see (a) below
AASB 16       23 Feb 2016  F2016L00233     31 Dec 2018         (beginning) 1 Jan 2019  see (b) below
AASB 1060     6 Mar 2020   F2020L00288     30 Jun 2021         (beginning) 1 Jul 2021  see (c) below
AASB 2022-10  15 Dec 2022  F2023L00010     31 Dec 2023         (beginning) 1 Jan 2024  see (d) below

   (a) Entities may elect to apply