Amendments to Australian Accounting Standards – Scope and Application Paragraphs

[AASB 8, AASB 133 & AASB 1057]

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© Commonwealth of Australia 2015

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ISSN 1036-4803

CONTENTS

Preface

Accounting Standard

AASB 2015-9 AmenDMENTS TO aUSTRALIAN aCCOUNTING sTANDARDS – Scope and Application Paragraphs

Paragraphs

Objective 1

Application 2 – 6

Amendment to AASB 8 7

Amendments to AASB 133 (July 2004) 8 – 9

Amendment to AASB 133 (August 2015) 10

Amendments to AASB 1057 11

Commencement of the Legislative Instrument 12

Australian Accounting Standard AASB 2015-9 Amendments to Australian Accounting Standards – Scope and Application Paragraphs is set out in paragraphs 1 – 12. All the paragraphs have equal authority.

Preface

Introduction

This Standard makes amendments to the following Australian Accounting Standards:

(a)          AASB 8 Operating Segments;

(b)         AASB 133 Earnings per Share; and

(c)          AASB 1057 Application of Australian Accounting Standards.

Main Features of this Standard

Main Requirements

This Standard inserts scope paragraphs into AASB 8 and AASB 133 in place of application paragraph text in AASB 1057.

The AASB reissued AASB 8, AASB 133 and most of the Australian Accounting Standards that incorporate International Financial Reporting Standards (issued by the International Accounting Standards Board) in July and August 2015 to make editorial changes.  The new principal versions do not include Australian application paragraphs, which were included instead in a new Standard, AASB 1057.

The application paragraphs in the previous versions of AASB 8 and AASB 133 covered scope paragraphs that appear separately in the corresponding IFRS 8 and IAS 33.  In moving those application paragraphs to AASB 1057, the AASB inadvertently deleted the scope details from AASB 8 and AASB 133.  This amending Standard puts the scope details into those Standards.

There is no change to the requirements or the applicability of AASB 8 and AASB 133.

Application Date

This Standard applies to annual periods beginning on or after 1 January 2016.  Early application is permitted.

aCCOUNTING STANDARD AASB 2015-9

The Australian Accounting Standards Board makes Accounting Standard AASB 2015-9 Amendments to Australian Accounting Standards – Scope and Application Paragraphs under section 334 of the Corporations Act 2001.

aCCOUNTING STANDARD AASB 2015-9

AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS – Scope and Application Paragraphs

Objective

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

(a)          AASB 8 Operating Segments;

(b)          AASB 133 Earnings per Share; and

(c)          AASB 1057 Application of Australian Accounting Standards;

to insert scope paragraphs into AASB 8 and AASB 133 in place of application paragraph text in AASB 1057.

Application

2              Subject to paragraph 3, this Standard applies to:

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

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

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

(d)         financial statements of General Government Sectors (GGSs) prepared in accordance with AASB 1049 Whole of Government and General Government Sector Financial Reporting.

3              The amendments set out in this Standard apply to entities and financial statements in accordance with the application of the other Standards and Interpretations set out in AASB 1057 Application of Australian Accounting Standards (as amended).

4              This Standard applies to annual periods beginning on or after 1 January 2016.

5              This Standard may be applied to annual periods beginning before 1 January 2016.

6              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.

Amendment to AASB 8

7              Paragraph 2 is added as follows:

2 This Standard shall apply to:

(a)          the separate or individual financial statements of an entity:

(i)           whose debt or equity instruments are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets), or

(ii)         that files, or is in the process of filing, its financial statements with a securities commission or other regulatory organisation for the purpose of issuing any class of instruments in a public market; and

(b)          the consolidated financial statements of a group with a parent:

(i)           whose debt or equity instruments are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets), or

(ii)         that files, or is in the process of filing, the consolidated financial statements with a securities commission or other regulatory organisation for the purpose of issuing any class of instruments in a public market.

Amendments to AASB 133 (July 2004)

8              The following amendments to AASB 133 (July 2004, as amended) apply to annual periods beginning on or after 1 January 2016 but before 1 January 2018.

9              Paragraph Aus1.1 is deleted, paragraph Aus1.9 is amended (new text is underlined and deleted text is struck through) and paragraph 2 is added as follows:

Aus1.9 Paragraphs 3-73A and the Application Guidance Appendix do not apply to entities preparing general purpose financial statements under Australian Accounting Standards – Reduced Disclosure Requirements and are identified in this Standard by shading of the relevant text.  By virtue of paragraph Aus1.1 this This Standard applies to relevant Tier 1 entities preparing general purpose financial statements in accordance with Australian Accounting Standards and to relevant Tier 2 entities that elect to comply with this Standard.  Entities applying Australian Accounting Standards – Reduced Disclosure Requirements may elect to comply with some or all of the excluded requirements.

2 This Standard shall apply to:

(a)          the separate or individual financial statements of an entity:

(i)           whose ordinary shares or potential ordinary shares are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets) or

(ii)         that files, or is in the process of filing, its financial statements with a securities commission or other regulatory organisation for the purpose of issuing ordinary shares in a public market; and

(b)         the consolidated financial statements of a group with a parent:

(i)           whose ordinary shares or potential ordinary shares are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets) or

(ii)         that files, or is in the process of filing, its financial statements with a securities commission or other regulatory organisation for the purpose of issuing ordinary shares in a public market.

Amendment to AASB 133 (August 2015)

10           Paragraph 2 is added to AASB 133 (August 2015) as follows, for annual periods beginning on or after 1 January 2018:

2 This Standard shall apply to:

(a)          the separate or individual financial statements of an entity:

(i)           whose ordinary shares or potential ordinary shares are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets) or

(ii)         that files, or is in the process of filing, its financial statements with a securities commission or other regulatory organisation for the purpose of issuing ordinary shares in a public market; and

(b)         the consolidated financial statements of a group with a parent:

(i)           whose ordinary shares or potential ordinary shares are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets) or

(ii)         that files, or is in the process of filing, its financial statements with a securities commission or other regulatory organisation for the purpose of issuing ordinary shares in a public market.

Amendments to AASB 1057

11           Paragraphs 6 and 9 are amended as follows (new text is underlined and deleted text is struck through):

6 AASB 8 Operating Segments applies to:

(a)          each for-profit 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 for-profit reporting entity other than for-profit government departments; and

(c)          financial statements of a for-profit entity other than for-profit government departments that are, or are held out to be, general purpose financial statements.;

in respect of:

(d)         the separate or individual financial statements of an entity:

(i)           whose debt or equity instruments are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets); or

(ii)         that files, or is in the process of filing, its financial statements with a securities commission or other regulatory organisation for the purpose of issuing any class of instruments in a public market; and

(e)          the consolidated financial statements of a group with a parent:

(i)           whose debt or equity instruments are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets); or

(ii)         that files, or is in the process of filing, the consolidated financial statements with a securities commission or other regulatory organisation for the purpose of issuing any class of instruments in a public market.

9 AASB 133 Earnings per Share applies to 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 or discloses earnings per share.:

(a)          a reporting entity whose ordinary shares or potential ordinary shares are publicly traded; or

(b)         a reporting entity that is in the process of issuing ordinary shares or potential ordinary shares in public markets; or

(c)          an entity that discloses earnings per share.

Commencement of the Legislative Instrument

12           For legal purposes, this legislative instrument commences on 31 December 2015.