Document ID: chunk:federal_register_of_legislation:F2023C00381:reg:25:p44
Version: federal_register_of_legislation:F2023C00381
Segment Type: reg
Provision Reference: reg 25 (pt 44/47)
Character Range: 146772–149695

with AASB accounting standards (ie of which a complete set of financial statements under paragraph 10 of AASB 101 is not required) would not be within the scope of this Standard (see category 5 in the Summary of scope table in paragraph BC93 below).

     BC79            In reviewing the legislative references, the Board noted that in some instances legislation referred to 'accounting standards', rather than 'Australian Accounting Standards'. The Board decided that the application paragraphs of AAS should include entities that are required by legislation to comply with 'accounting standards' as well as 'Australian Accounting standards'. In making this decision, the Board noted that it is reasonable to expect that legislators intended compliance with accounting standards as issued by the AASB when that term is used under Australian legislation (see category 5) in the Summary of scope table below). For these same reasons, legislative references to other similar terms such as 'accounting principles' or 'generally accepted accounting practice' are more broad, and therefore the Board did not think it was reasonable to infer they were intended to require compliance with accounting standards issued by the AASB and accordingly such references are not within the scope of this Standard. Further, the Board decided that the application paragraphs would only capture references to AAS for entities with a non-legislative requirement, as in those cases it is less clear as to whether the constituting document would have intended to refer to accounting standards as issued by the AASB, when the term 'accounting standards' is used (see category 7) in the Summary of scope table in paragraph BC93 below).

Public sector entities

     BC80            The Board decided that separate consideration of the public sector was needed because, unlike in the for-profit private sector and NFP private sector, public sector financial reporting is arguably too extensive and not targeted enough to enable public sector entities to be held sufficiently to account. For example, government departments are effectively administrative constructs, and requiring Tier 1 GPFS for all such departments when they are also included in Whole of Government (WoG) GPFS means users might not be directed to the key budget versus actual and service performance reporting information that would enable genuine accountability. Therefore, the Board decided it would pursue financial reporting reform in the public sector via consultation based on the AASB Discussion Paper Improving Financial Reporting for Australian Public Sector, which was issued in June 2018, rather than as part of Phase 2 of ITC 39 (see categories 2, 3 and 8) in the summary of scope table in paragraph BC93 below).

Trusts and other entities with a non-legislative requirement to comply with AAS

     BC81            When deciding on the scope of Phase 1 of ITC 39 the