AASB 2008-12 Amendments to Australian Accounting Standards - Reclassification of Financial Assets - Effective Date and Transition (December 2008)

Accounting Standard AASB 2008-12 December 2008 Amendments to Australian Accounting Standards – Reclassification of Financial Assets – Effective Date and Transition [ AASB 7, AASB 139 & AASB 2008-10 ] Obtaining a Copy of this Accounting Standard This Standard is available o n the AASB website: www.aasb.gov .au. Alternatively, printed copies of this Standard are available for purchase by contacting: The Customer Service Officer Australian Accounting Standards Board Level 7 600 Bourke Street Melbourne Victoria AUSTRALIA Postal address: PO Box 204 Collins St reet West Vic toria 8007 AUSTRALIA Phone: (03) 9617 7637 Fax: (03) 9617 7608 E-mail: [email protected] .au Website: www.aasb.gov .au COPYRIGHT © Commonwealth of Australia 2008 This AASB Standard contains International Accounting Standards Committee Foundation copyright material. 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ISSN 1036-4803 Other Enquiries Phone: (03) 9617 7600 Fax: (03) 9617 7608 E-mail: [email protected] .au CONTENTS Preface Accounting Standard AASB 2008-12 AmenDMENTS TO aUSTRALIAN aCCOUNTING sTANDARDS – RECLASSIFICATION OF FINANCIAL ASSETS – EFFECTIVE DATE AND TRANSITION Paragraphs Objective 1 Application 2 – 3 Amendment s to AASB 7 4 Amendment s to AASB 139 5 – 6 Amendment s to AASB 2008-10 7 – 9 DELETED IFRS TEXT Page 8 Australian Accounting Standard AASB 2008-12 Amendments to Australian Accounting Standards – Reclassification of Financial Assets – Effective Date and Transition is set out in paragraphs 1- 9 . All the pa ragraphs have equal authority. Preface Standards Amended by AASB 2008-12 Th is Standard makes amendments to the following Australian Accounting Standards : AASB 7 Financial Instruments: Disclosures ; AASB 139 Financial Instruments: Recognition and Measurement ; and AASB 2008-10 Amendments to A ustralian Accounting Standards – Reclassification of Financial Assets . These a mendments arise from the is suance by the IASB of Amendments to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 7 Financial Instruments: Disclosures – Reclassification of Financial Assets – Effective Date and Transition . Main Features of this Standard Application Date This Standard is applicable on or after 1 July 2008 . E arly adoption of this Standard is not permitted. Main Requirement This Standard clarifies the effective date of the amendments made to AASB 139 and AASB 7 as a result of the issuance of AASB 2008-10 in November 2008. aCCOUNTING STANDARD AASB 2008-12 The Australian Accounting Standards Board makes Accounting Standard AASB 2008-12 Amendments to Australian Accounting Standards – Reclassification of Financial Assets – Effective Date and Transition under section 334 of the Corporations Act 2001 . Bruce Porter Dated 18 December 2008 Acting Chair – AASB aCCOUNTING STANDARD AASB 2008-12 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS – RECLASSIFICATION OF FINANCIAL ASSETS – EFFECTIVE DATE AND TRANSITION Objective 1 The o bjective of this Standard is to make amendments to: (a) AASB 7 Financial Instruments: Disclosures ; (b) AASB 139 Financial Instruments: Recognition and Measurement ; and (c) AASB 2008-10 Amendments to Australian Accounting Standards – Reclassification of Financial Assets ; to clarify the effective date of the amendments made to AASB 139 and AASB 7 as a result of the issuance of AASB 2008-10 in November 2008. Application 2 T his Standard applies to: (a) each entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act 2001 and that is a reporting entity; (b) general purpose financial reports of each other reporting entity ; and (c) financial reports that are, or are held out to be, general purpose financial reports. 3 This Standard applies to reclassifications on or after 1 July 2008 . Early adoption of this S tandard is not permitted. Amendments to AASB 7 4 Paragraphs Aus 44E and Aus 44F are inserted as follows: Aus44E AASB 2008-10 Amendments to Australian Accounting Standards – Reclassification of Financial Assets , issued in Novem ber 2008, amended paragraph 12 and added paragraph 12A. An entity shall apply those amendments on or after 1 July 2008. Aus44F AASB 2008- 12 Amendments to Australian Accounting Standards – Reclassification of Financial Assets – Effective Date and Transition , issued in Decem ber 2008, amended paragraph Aus 44E. An entity shall apply that amendment on or after 1 July 2008. Amendments to AASB 139 5 Paragraphs Aus 103H and Aus 103I are added as follows: Aus103H AASB 2008-10 Amendments to Australian Accounting Standards – Reclassification of Financial Assets , issued in November 2008, amended paragraphs 50 and AG8, and added paragraphs 50B - 50F. An entity shall apply thos e amendments on or after 1 July 2008. An entity shall not reclassify a financial asset in accordance with paragrap h 50B, 50D or 50E before 1 July 2008. Any reclassification of a financial asset made on or after 1 November 2008 shall take effect only from the date when the reclassification is made. Any reclassification of a financial asset in accordance with paragraph 50B, 50D or 50E shall not be a pplied retrospectively before 1 July 2008. Aus103I AASB 2008- 12 Amendments to Australian Accounting Standards – Reclassification of Financial Assets – Effective Date and Transition , issued in Decemb er 2008, amended paragraph Aus 103H. An entity shall apply that ame ndment on or after 1 July 2008. 6 The second and third sentence s of paragraph AG8 are amended to read as follows: AG8 The entity recalculates the carrying amount by computing the present value of estimated future cash flows at the financial instrument’s original effective interest rate or, when applicable, the revised effective interest rate calculated in accordance with paragraph 92. The adjustment is recognised in profit or loss as income or expense. Amendments to AASB 2008-10 7 Paragraph 3 is amended to read as follows: 3 The amendments to AASB 139 shall apply on or after 1 July 2008. An entity shall not reclassify a financial asset in accordance with paragraph 50B, 50D or 50E before 1 July 2008. Any reclassification of a financial asset, in accordance with paragraph 50B, 50D or 50E, made on or after 1 November 2008 shall take effect only from the date when the reclassification is made. Any reclassification of a financial asset in accordance with paragraph 5 0B, 50D or 50E shall not be applied retrospectively before 1 July 2008 . 8 Paragraph 4 is amended to read as follows: 4 The amendments to AASB 7 shall apply on or after 1 July 2008. 9 Sub-heading ‘Paragraph 103G’ in the section titled DELETED IFRS TEXT under the heading IAS 39 Financial Instruments: Recognition and Measurement is amended to refer to Paragraph 103H. DELETED IFRS TEXT Deleted IFRS text is not part of AASB 2008- 12 . IFRS 7 Financial Instruments: Disclosures Deleted I FR S 7 text is not part of AASB 7 . Paragraph 44E Reclassification of Financial Assets (Amendments to IAS 39 and IFRS 7), issued in October 2008, amended paragraph 12 and added paragraph 12A. An entity shall appl y those amendments on or after 1 July 2008. Paragraph 44F Reclassification of Financial Assets—Effective Date and Transition (Amendments to IAS 39 and IFRS 7) , issued in November 2008, amended paragraph 44E. An entity shall apply that amendment on or after 1 July 2008. IAS 39 Financial Instruments: Recognition and Measurement Deleted IAS 39 text is not part of AASB 139. Paragraph 103H Reclassification of Financial Assets (Amendments to IAS 39 and IFRS 7), issued in October 2008, amended paragraphs 50 and AG8, and added paragraphs 50B–50F. An entity sh all apply those amendments on or after 1 July 2008. An entity shall not reclassify a financial asset in accordance with paragraph 50B, 50D or 50E before 1 July 2008. Any reclassification of a financial asset made on or after 1 November 2008 shall take effect only from the date when the reclassification is made. Any reclassification of a financial asset in accordance with paragraph 50B, 50D or 50E shall not be applied retrospectively before 1 July 2008. Paragraph 103I Reclassification of Financial Assets – Effective Date and Transition (Amendments to IAS 39 and IFRS 7), issued in November 2008, amended paragraph 103H. An entity shall app ly that amendment on or after 1 July 2008.