At the most recent meeting of the AASB, amongst other topics discussed, those most relevant to the NFP sector were;
- Possible policy implications of the results emerging from the research into special purpose financial reporting;
The research is raising questions about the application of the reporting entity concept by entities in determining whether they should prepare general purpose financial statements (GPFSs); the extent to which different types of entities are lodging GPFSs compared with special purpose financial statements (SPFSs); and the quality of those respective financial statements in relation to the recognition and measurement requirements of Australian Accounting Standards.
The Board noted that the research findings cast doubt on how well the reporting entity concept is being applied and observed that the findings to date lend support to the proposals in ED 192 Revised Differential Reporting Framework that the focus of the application of Australian Accounting Standards should change to GPFS and the meaning of GPFSs in the Australian context should be clarified.
The Board decided staff should liaise with other regulators, including the Treasury and the Australian Securities and Investments Commission, with a view to coordinating the Board’s and other regulators’ efforts in dealing with the issues emerging in the research report and potentially transitioning to a more coordinated reporting regime.
- Implementation guidance for NFP entities in relation to the definition of control in AASB 10 Consolidated Financial Statements;
The Board considered issues in respect of the draft ED of Australian implementation guidance for NFP entities in relation to AASB 10 Consolidated Financial Statements.
The Board noted the objective of issuing the ED next month and decided the ED should have a three-month comment period.
- Service concession arrangements: grantor’s perspective;
The Board received a progress report on its project considering the modifications that might be made to IPSAS 32 Service Concession Arrangements: Grantor to make it suitable for adoption in Australia.
In particular, the Board noted the progress made by staff in addressing the question of whether a grantor
should initially recognise a liability or revenue when it receives a service concession asset from an operator in exchange for a right (that is, a licence) to charge users of the asset.
Also discussed was budgetary reporting by not-for-profit (NFP) public sector entities.
Full details of the meeting are available HERE.