AASB 2008-13 - Amendments to Australian Accounting Standards arising from AASB Interpretation 17 - Distributions of Non-cash Assets to Owners - December 2008

Accounting Standard AASB 2008-13 December 2008 Amendments to Australian Accounting Standards arising from AASB Interpretation 17 – Distributions of Non-cash Assets to Owners [ AASB 5 & AASB 110 ] 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 2008-13 AmenDMENTS TO aUSTRALIAN aCCOUNTING sTANDARDS aRISING FROM AASB Interpretation 17 – distributions of non-cash assets to owners Paragraphs Objective 1 Application 2 – 4 Amendment to AASB 5 5 – 10 Amendment to AASB 110 11 DELETED IFRS TEXT Page 8 Australian Accounting Standard AASB 2008-13 Amendments to Australian Accounting Standards a rising f rom AASB Interpretation 17 – Distributions of Non-cash Assets to Owners is set out in paragraphs 1-11 . All the pa ragraphs have equal authority. Preface Standards Amended by AASB 2008-13 Th is Standard makes amendments to the following Australian Accounting Standards : AASB 5 Non-current Assets Held for Sale and Discontinued Operations ; and AASB 110 Events after the Balance Sheet Date . These amendments arise from the issuan ce of AASB Interpretation 17 Distributions of Non-cash Assets to Owners . Main Features of this Standard Application Date This Standard is applicable prospectively to annual reporting periods beginning on or after 1 July 2009 . Retrospective application is not permitted. This Standard shall be applied when AASB Interpretation 17 is applied . Ea rl ier application is permitted . If an entity applies this Interpretation for a period beginning before 1 July 2009 , it shall disclose that fact and also apply AASB 3 Business Combinations (March 2008, as amended), AASB 127 Consolidated and Separate Financial Statements (as amended in May 2008) and AASB Interpretation 17 for the same period. Main Requirements The issuance of AASB Interpretation 17 necessitates consequential amendments to AASB 5 and AASB 110. The amendments are in respect of the classification, presentation and measurement of non-current assets held for distribution to owners in their capacity as owners and the disclosure requirements for dividends that are declared after the reporting period but before the financial statements are authorised for issue, respectively. aCCOUNTING STANDARD AASB 2008-13 The Australian Accounting Standards Board makes Accounting Standard AASB 2008-13 Amendments to Australian Accounting Standards arising from AASB Interpretation 17 – Distributions of Non-cash Assets to Owners under section 334 of the Corporations Act 2001 . Bruce Porter Dated 18 December 2008 Acting Chair – AASB aCCOUNTING STANDARD AASB 2008-13 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS ARISING FROM AASB Interpretation 17 – Distributions of non-cash assets to owners Objective 1 The o bjective of this Standard is to make amendments to: (a) AASB 5 Non-current Assets Held for Sale and Discontinued Operations (b) AASB 110 Events after the Balance Sheet Date a s a consequence of the issuance of AASB Interpretation 17 – Distributions of Non-cash Assets to Owners in December 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 and that is a reporting entity; (b) general purpose financial reports of each reporting entity; and (c) financial reports that are, or are held out to be, general purpose financial reports. 3 This Standard applies prospectively to annual reporting periods beginning on or after 1 July 2009 . Retrospective application is not permitted. 4 This Standard shall be applied when AASB Interpretation 17 is applied. This Standard may be applied to annual reporting periods beginning on or after 1 January 2005 but before 1 July 2009 provided AASB Interpretation 17 is also adopted early for the same period . When an entity applies this Standard to such an annual reporting period , it shall disclose that f act, and also apply AASB 3 Business Combinations (March 2008, as amended) , AASB 127 Consolidated and Separate Financial Statements ( as amended in May 2008 ) and AASB Interpretation 17 . Amendments to AASB 5 5 Paragraph 5A is added: 5A The classification, presentation and measurement requirements in this IFRS applicable to a non-current asset (or disposal group) that is classified as held for sale apply also to a non-current asset (or disposal group) that is classified as held for distribution to owners acting in their capacity as owners (held for distribution to owners). 6 The heading after paragraph 5A is amended to read as follows: Classification of non-current assets (or disposal groups) as held for sale or as held for distribution to owners 7 The following sentence is added at the end of paragraph 8: 8 … The probability of shareholders’ approval (if required in the jurisdiction) should be considered as part of the assessment of whether the sale is highly probable. 8 Paragraph 12A is added: 12A A non-current asset (or disposal group) is classified as held for distribution to owners when the entity is committed to distribute the asset (or disposal group) to the owners. For this to be the case, the assets must be available for immediate distribution in their present condition and the distribution must be highly probable. For the distribution to be highly probable, actions to complete the distribution must have been initiated and should be expected to be completed within one year from the date of classification. Actions required to complete the distribution should indicate that it is unlikely that significant changes to the distribution will be made or that the distribution will be withdrawn. The probability of shareholders’ approval (if required in the jurisdiction) should be considered as part of the assessment of whether the distribution is highly probable. 9 Paragraph 15A and a footnote are added : 15A An entity shall measure a non-current asset (or disposal group) classified as held for distribution to owners at the lower of its carrying amount and fair value less costs to distribute [1] . 10 Paragraph Aus 44D is added: Aus 44D Paragraphs 5A, 12A and 15A were added and paragraph 8 was amended by this Standard which arose from AASB Interpretation 17 Distributions of Non-cash Assets to Owners in December 2008. Those amendments shall be applied prospectively to non-current assets (or disposal groups) that are classified as held for distribution to owners in annual periods beginning on or after 1 July 2009. Retrospective application is not permitted. Earlier application is permitted. If an entity applies the amendments for a period beginning before 1 July 2009 it shall disclose that fact and also apply AASB 3 (March 2008, as amended), AASB 127 Consolidated and Separate Financial Statements ( as amended in May 2008 ) and AASB Interpretation 17 Distributions of Non-cash Assets to Owners . Amendments to AASB 110 11 Paragraph 13 is amended to read as follows: 13 If dividends are declared after the reporting period but before the financial statements are authorised for issue, the dividends are not recognised as a liability at the end of the reporting period because no obligation exists at that time. Such dividends are disclosed in the notes in accordance with AASB 101 Presentation of Financial Statements . deleted ifrs text Deleted IFRS text is not part of AASB 2008- 13 . IFRS 5 Non-current Assets Held for Sale and Discontinued Operations Deleted IFRS 5 text is not part of AASB 5. Paragraph 44D Paragraphs 5A, 12A and 15A were added and p aragraph 8 was amended by IFRIC 17 Distributions of Non-cash Assets to Owners in November 2008. Those amendments shall be applied prospectively to non-current assets (or disposal groups) that are classified as held for distribution to owners in annual periods beginning on or after 1 July 2009. Retrospective application is not permitted. Earlier application is permitted. If an entity applies the amendments for a period beginning before 1 July 2009 it shall disclose that fact and also apply IFRS 3 Business Combinations (as revised in 2008), IAS 27 (as amended in May 2008) and IFRIC 17. [1] Costs to distribute are the incremental costs directly attributable to the distribution, excluding finance costs and income tax expense.