AASB Standard

AASB 2010-10

December 2010

 

 

 

 

Further Amendments to Australian Accounting Standards – Removal of Fixed Dates for First-time Adopters

 

[AASB 2009-11 & AASB 2010-7]

 

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© Commonwealth of Australia 2010

 

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ISSN 1036-4803


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CONTENTS

Preface

Accounting Standard

AASB 2010-10 Further AmenDMENTS TO aUSTRALIAN aCCOUNTING sTANDARDS – Removal of Fixed dates for first-time adopters

 

Paragraphs

Objective 1

Application 2 – 5

Amendments to AASB 2009-11 6 – 7

Amendments to AASB 2010-7 8 – 9

 

Australian Accounting Standard AASB 2010-10 Further Amendments to Australian Accounting Standards – Removal of Fixed Dates for First-time Adopters is set out in paragraphs 1 – 9.  All the paragraphs have equal authority.

 

Preface

This Standard makes amendments to the following Australian Accounting Standards:

  1. AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9; and
  2. AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010).

These amendments arise from the issuance of Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters (Amendments to IFRS 1) by the International Accounting Standards Board in December 2010.

This Standard is applicable to annual reporting periods beginning on or after 1 January 2013.  Early adoption is permitted as set out in AASB 2009-11 and AASB 2010-7.

 

The amendments ultimately affect AASB 1 First-time Adoption of Australian Accounting Standards and provide relief for first-time adopters of Australian Accounting Standards from having to reconstruct transactions that occurred before their date of transition to Australian Accounting Standards.

The amendments to AASB 2009-11 will only affect early adopters of AASB 2009-11 (and AASB 9 Financial Instruments as issued in December 2009) as it has been superseded by AASB 2010-7 for annual reporting periods beginning on or after 1 January 2013.

 

aCCOUNTING STANDARD AASB 2010-10

The Australian Accounting Standards Board makes Accounting Standard AASB 2010-10 Further Amendments to Australian Accounting Standards – Removal of Fixed Dates for First-time Adopters under section 334 of the Corporations Act 2001.

 

 

Kevin M. Stevenson

Dated 31 December 2010

Chair – AASB

 

 

aCCOUNTING STANDARD AASB 2010-10

Further AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS – Removal of Fixed dates for First-time Adopters

1              The objective of this Standard is to make amendments to:

(a)          AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9; and

(b)          AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010);

as a consequence of the issuance of Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters (Amendments to IFRS 1) by the International Accounting Standards Board in December 2010.

2              This Standard applies to:

(a)          each entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act and that is a reporting entity;

(b)         general purpose financial statements of each other reporting entity; and

(c)          financial statements that are, or are held out to be, general purpose financial statements.

3              This Standard applies to annual reporting periods beginning on or after 1 January 2013.

4              Early application of the amendments in this Standard is permitted in accordance with the early application provisions of
AASB 2009-11 or AASB 2010-7, as relevant.

5              This Standard uses underlining, striking out and other typographical material to identify some of the amendments to a Standard, in order to make the amendments more understandable.  However, the amendments made by this Standard do not include that underlining, striking out or other typographical material.

6              Paragraph 9 is amended (new text is underlined and deleted text is struck through) and paragraph B2 added (new text is underlined and deleted text is struck through) as follows:

9 In Appendix B, paragraphs B1 and B2 is are amended, …

…

B2  Except as permitted by paragraph B3, a first-time adopter shall apply the derecognition requirements in AASB 139 Financial Instruments: Recognition and Measurement prospectively for transactions occurring on or after
1 January 2004 the date of transition to Australian Accounting Standards.  In other words For example, if a first-time adopter derecognised non-derivative financial assets or non-derivative financial liabilities in accordance with its previous GAAP as a result of a transaction that occurred before 1 January 2004 the date of transition to Australian Accounting Standards, it shall not recognise those assets and liabilities in accordance with Australian Accounting Standards (unless they qualify for recognition as a result of a later transaction or event).

…

7              Paragraph 10 is amended (new text is underlined and deleted text is struck through) and paragraph D20 added (new text is underlined and deleted text is struck through) as follows:

10  In Appendix D (Exemptions from other Australian Accounting Standards), paragraphs D19 and D20 is are amended …

…

D20  Notwithstanding the requirements of paragraphs 7 and 9, an entity may apply the requirements in the last sentence of AASB 139 paragraph AG76 and in paragraph AG76A, in either of the following ways:

(a)  prospectively to transactions entered into on or after the date of transition to Australian Accounting Standards 25 October 2002; or 

(b)  prospectively to transactions entered into after
1 January 2004.

 

8              In paragraph 10, the amended paragraph B2 is amended as follows (new text is underlined and deleted text is struck through):

B2  Except as permitted by paragraph B3, a first-time adopter shall apply the derecognition requirements in AASB 9 Financial Instruments prospectively for transactions occurring on or after
1 January 2004 the date of transition to Australian Accounting Standards.  In other words For example, if a first-time adopter derecognised non-derivative financial assets or non-derivative financial liabilities in accordance with its previous GAAP as a result of a transaction that occurred before 1 January 2004 the date of transition to Australian Accounting Standards, it shall not recognise those assets and liabilities in accordance with Australian Accounting Standards (unless they qualify for recognition as a result of a later transaction or event).

9              In paragraph 11, the amended paragraph D20 is amended as follows (new text is underlined and deleted text is struck through):

D20  Despite the requirements of paragraphs 7 and 9, an entity may apply the requirements in the last sentence of paragraph B5.4.8 and in paragraph B5.4.9 of AASB 9, in either of the following ways:

(a)  prospectively to transactions entered into on or after the date of transition to Australian Accounting Standards
25 October 2002; or 

(b)  prospectively to transactions entered into after 1 January 2004.