Document ID: chunk:federal_register_of_legislation:F2023C00402:reg:97:p23
Version: federal_register_of_legislation:F2023C00402
Segment Type: reg
Provision Reference: reg 97 (pt 23/56)
Character Range: 323144–326134

tax more closely with the definitions of the ABS's Government Finance Statistics (GFS) Manual to allow for the harmonisation of the two frameworks; and

          (c)                    some respondents raised concerns with the proposal to allocate the transaction wholly to a promise to issue a licence where the arrangement has a dual purpose of issuing a licence and imposing a tax. The respondents were especially concerned with the practical consequences when having to account for any variable consideration, noting that it is possible for an arrangement to demonstrate both elements of licensing and taxation.

     BC11            The Board considered these issues as well as a range of other issues identified by constituents in developing this Standard following the ED 283 exposure process.

     BC12            In May, June and August 2018, the Board considered issues papers and draft wording for paragraphs of the Standard which were published as Board agenda papers for the public. This gave constituents the opportunity to follow the debate and to provide comments on the issues and drafting contemporaneously.

     BC13            In August 2018 the Board decided to finalise its decisions to address issues raised by constituent in the form of a Pre-Ballot Draft of the Standard. The Board felt it unnecessary to issue a fatal-flaw version of the Standard in light of the Board deciding not to make any major changes to the proposals in ED 283. Instead, the Board decided that the final Standard would provide clarification and additional guidance and examples to assist NFP public sector licensors distinguish licences from taxes (and other arrangements within the scope of other Standards), and how the principles of AASB 15 would apply to non-IP licences.

Scope
     BC14            The Board decided the scope of the amendments to AASB 15 effected through this Standard should be restricted to NFP public sector licensors. The Board identified a small number of non-IP licences issued by for-profit public sector entities, however consistent with The AASB's For-Profit Entity Standard-Setting Framework the Board decided not to expand the scope of the guidance as:

          (a)                    the prevalence and magnitude of the transactions in the for-profit public sector are not such that users would be likely to make inappropriate decisions based on the financial statements prepared without regard to the guidance in this Standard; and

          (b)                   in light of the above, the Board preferred to not risk precluding for-profit public sector entities from being able to claim IFRS compliance.

     BC15            The Board noted that its decision regarding to apply AASB 1059 to all public sector entities including for-profit entities was the result of a decision made specifically in the context of that project.

Features of licences
     BC16            The Board noted that AASB 15 provides some examples of IP licences but none