Document ID: chunk:federal_register_of_legislation:F2021C00954:body:0:p19
Version: federal_register_of_legislation:F2021C00954
Segment Type: other
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Character Range: 48752–51775

24–31 and the corresponding guidance in paragraphs B21–B26 of this Standard need not be applied for any period presented that begins before the first annual period for which AASB 12 is applied.

References to AASB 9
C3 If an entity applies this Standard but does not yet apply AASB 9, any reference to AASB 9 shall be read as a reference to AASB 139 Financial Instruments: Recognition and Measurement.

Appendix E
Australian implementation guidance for not-for-profit entities
This appendix is an integral part of the Standard and has the same authority as the other parts of the Standard.  The appendix applies only to not-for-profit entities.  The appendix does not apply to for-profit entities or affect their application of AASB 12.
IG1 AASB 12 incorporates International Financial Reporting Standard IFRS 12 Disclosure of Interests in Other Entities, issued by the International Accounting Standards Board.  Consequently, some of the text of this Standard particularly reflects the perspective of for-profit entities.  The AASB has prepared this appendix to explain and illustrate the definition of 'structured entity' in the Standard for not-for-profit entities in the private and public sectors, to address circumstances where the for-profit perspective does not readily translate to a not-for-profit perspective.
IG2 AASB 12 includes specific disclosure requirements regarding both consolidated and unconsolidated structured entities.  Entities preparing general purpose financial statements that apply AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities are not required to comply with AASB 12.

Structured entities
IG3 A structured entity is defined in Appendix A of AASB 12 as follows:
"An entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements."
Relevant activities are defined in AASB 10 as the activities of an entity that significantly affect the entity's returns.  The current ability to direct the relevant activities is necessary in order for one entity to control another.
IG4 Paragraph B22 of AASB 12 states that structured entities often have some or all of the following features or attributes: restricted activities, a narrow and well-defined objective, insufficient equity to finance its activities without subordinated financial support, and financing tranches in the form of multiple contractually linked instruments.  Paragraph B23 gives examples of structured entities: securitisation vehicles, asset-backed financings and some investment funds.
IG5 The definition of a structured entity depends on voting or similar rights not being the dominant factor in deciding who controls an entity.  Voting rights are a common feature in many for-profit entities, having a dominant role in determining who controls