Issue
[1]
In March 2015, the AASB issued AASB 2015-6 Amendments to Australian Accounting Standards – Extending Related Party Disclosures to Not-for-Profit Public Sector Entities, extending the scope of AASB 124 Related Party Disclosures to include application by not-for-profit public sector entities. Since issue of the amendments, concerns have been raised with the AASB about the operationalisation of the Standard in the public sector. The concerns primarily relate to assessment of the materiality of transactions with a key management personnel (KMP) related party. Consequently, the AASB considered the issue of whether a transaction with a KMP related party that did not occur as part of a public services provider/taxpayer relationship is always material for disclosure in general purpose financial statements.