Good news for not-for-profit public sector entities. They will not need to make certain fair value disclosures about property, plant and equipment held for their current service potential. The amendments to AASB 13 Fair Value Measurement may be early adopted to apply for 30 June 2015 year ends.

Kris Peach, Chair of the AASB noted “The AASB wanted this relief to be available for preparation of 30 June 2015 general purpose financial statements. Disclosures of quantitative information about the significant unobservable inputs used in fair value measurements and the sensitivity of certain fair value measurements to changes in unobservable inputs will no longer be required.”

The disclosures specified by AASB 13 had posed challenges and costs for the not-for-profit public sector where fair value measurement is prevalent and property, plant and equipment is held primarily to meet public service objectives. The AASB concluded that the concerns raised were more than transitional in nature, and that it was appropriate, in this instance, to depart from the requirements of the equivalent international pronouncement.

Ms Peach also observed that the Board’s research and discussions on this and similar other recent projects may have bearing on the Board’s active projects on the Australian Reporting Framework and the Reduced Disclosure Requirements (Tier 2) regime.

The amendments to AASB 13 are made by AASB 2015-7 Amendments to Australian Accounting Standards – Fair Value Disclosures of Not-for-Profit Public Sector Entities. AASB 13 and AASB 2015-7 are available on the AASB website. 

This media release was directly sourced from the Australian Accounting Standards Board website here.