The Accounting Standards Board (ASB) has
issued a draft financial reporting standard for public benefit
entities to accompany the proposed financial reporting standard for
medium-size entities (FRSME).
The ASB said it has developed the new standard
because IFRS based standards are written for the ‘for-profit’
sector and do not address some transactions that are specific to
the public benefit entity sector.
The proposed standard named FRED 45 addresses
concessionary loans, property held for the provision of social
benefits, entity combinations, impairment of assets, funding
commitments and incoming resources from non-exchange transactions
ASB chairman Roger Marshal said the proposals in
FRED 45 clarify how some public benefit entities sector specific
transactions should be accounted for.
“Many of the proposals mirror the requirements in
existing literature and statements of recommended practice, and
therefore are consistent with current practice,” Marshal said.
The consultation for the draft standard ends on 30
FRED 45: Financial Reporting Standard for Public Benefit Entities