Document ID: chunk:federal_register_of_legislation:F2023C00188:reg:7:p86
Version: federal_register_of_legislation:F2023C00188
Segment Type: reg
Provision Reference: reg 7 (pt 86/91)
Character Range: 242959–245940

for-profit entities.

BC163        The Board considered that it would be preferable for the effective date of AASB 1058, AASB 2016-8 and AASB 15 to be aligned for application by not-for-profit entities, rather than adopt a stepped approach to adopting the revised income recognition requirements.  Having regard to the timing of finalisation of this project, the Board decided, for not-for-profit entities, to defer the application date of AASB 1058, AASB 2016-8 and AASB 15 to 1 January 2019.  The amendment to defer the application date of AASB 15 to 1 January 2019 for not-for-profit entities is made by AASB 2016-7.

BC164        The Board decided to permit entities to early adopt AASB 1058, provided AASB 15 and AASB 2016-8 are applied at the same time.  The ability to early adopt means that a not-for-profit entity wishing to adopt the revised requirements at the same time as a for-profit entity is not prevented from doing so.

Other

Forthcoming amendments to the Australian Conceptual Framework

BC165        The Board observed that an active project on its work program is the development of a revised Australian Conceptual Framework.  The Board expects that there will be amendments to the definitions of various elements of the financial statements resulting from that project, at least for for-profit entities.

BC166        The Board considered whether AASB 1058 should be developed having regard to the proposals exposed in ED 264 Conceptual Framework for Financial Reporting (incorporating IASB ED/2015/3 of the same name) and any subsequent decisions of the IASB to date on its project.  The Board concluded it would be inappropriate to base its decisions in AASB 1058 on expected forthcoming amendments, noting that it had not yet deliberated the extent of any amendment that may be necessary to the IASB Conceptual Framework for application by Australian not-for-profit entities.

BC167        The Board noted it may, at a future time, consider undertaking a project to review the requirements of AASB 1058 against a revised Australian Conceptual Framework.

Contributions by owners

BC168        In developing ED 260, the Board noted the concerns of some constituents with the existing definition of "contributions by owners" (see Appendix A of AASB 1058) and Interpretation 1038 that includes for-profit public sector entities within its scope.  The Board observed:

(a)                    the IASB has not defined a similar term employed within the definition of 'income' in IFRS Standards; and

(b)                   the IPSASB's Public Sector Conceptual Framework includes a broader definition of 'ownership contributions' than that in Australian Accounting Standards.

BC169        Acknowledging constituent concerns about application of the term, the Board decided to invite comment on the defined term "contributions by owners" as part of this project.  The Board did not make a specific proposal regarding the definition of "contributions by owners".