Document ID: chunk:federal_register_of_legislation:F2025C00172:body:0:p62
Version: federal_register_of_legislation:F2025C00172
Segment Type: other
Provision Reference: 
Character Range: 160034–163027

trust's non-financial returns, the three control criteria are satisfied in respect of the charity and the charity would control the trust; or
(b) the trustee may be permitted by development regulations of the provincial governments to provide only oversight of the trust's activities, which are carried out in general by management committees appointed by the relevant provincial government.  In this case, the trustee does not have the power to direct the relevant activities of the trust, and accordingly the charity would not control the trust.
IG23 A government department acts in relation to an investee only as an agent of the responsible Minister when the department or an official of the department is merely authorised by the Minister to act on the Minister's behalf (in which case the department's activities in relation to the investee would be reflected in its reporting under AASB 1050 Administered Items).
IG24 Alternatively, a department acts as a principal under a delegation of powers from the Minister as the department or an official of the department exercises their own discretion, not subject to specific direction by the Minister.  In this case, the department would report its activities in relation to the investee as its own transactions.  The department would need to assess whether the delegated powers give it the current ability to direct the relevant activities of the investee and whether the other control criteria are satisfied in deciding whether the department controls the investee and should consolidate it.

Implementation examples
IG25 Examples IG1–IG5 illustrate the application of the three criteria for control (power over an investee, variable returns from involvement with the investee, and link between power and the investor's returns) in a range of circumstances.  Example IG5 also illustrates the effect of delegated powers in the public sector.
IG26 Each example provides detailed information about the purpose and design of the investee, as a basis for assessing control of the investee.  The sub-examples address the initial circumstances, and then vary the design of the investee, with the control assessment then reconsidered in each case.  Examples IG3 and IG4 particularly distinguish substantive and protective rights held by an investor in relation to the investee.  In any specific case, distinguishing substantive and protective rights requires analysis of the circumstances, including considering the reasons for different investors holding various rights in relation to the investee.

Implementation examples

Example IG1

A religious organisation ABC established a community housing program that provides low-cost housing.  The program is operated by an incorporated association.  The association's constitution states that its objective is to manage the community housing facility to meet the need for low-cost housing.  The association has not issued any equity instruments.

The relevant activities of the association comprise: