AASB 2010-10 - Further Amendments to Australian Accounting Standards – Removal of Fixed Dates for First-time Adopters -December 2010

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 ] 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 2010 This AASB Standard contains IFRS Foundation copyright material. Reproduction within Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use subject to the inclusion of an acknowledgment of the source. Requests and enquiries concerning reproduction and rights for commercial purposes within Australia should be addressed to The Director of Finance and Administration , Australian Accounting Standards Board, PO Box 204 , Collins Street West , Victoria 8007. All existing rights in this material are reserved outside Australia . Reproduction outside Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use only. Further information and requests for authorisation to reproduce for commercial purposes outside Australia should be addressed to the IFRS Foundation at www. ifrs .org. ISSN 1036-4803 Other Enquiries Phone: (03) 9617 7600 Fax: (03) 9617 7608 E-mail: [email protected] .au 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 Amendment s to AASB 2009-11 6 – 7 Amendment s to AASB 2010-7 8 – 9 Australian Accounting Standard AASB 2010-10 Further Amendments to Australian Accounting Standards – Removal of Fixed D ates for First-time Adopters is set out in paragraphs 1 – 9 . All the pa ragraphs have equal authority. Preface Standards Amended by AASB 2010-10 Thi s Standard makes amendments to the following Australian Accounting Standards : AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 ; and 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. Main Features of this Standard Application Date This Standard is applicable to annual reporting periods beginning on or after 1 January 201 3 . Early adoption is permitted as set out in AASB 2009-11 and AASB 2010-7 . Main Requirements T he 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 D ates 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 Objective 1 The o bjective 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) ; a s 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. 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 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. Amendments to AASB 2009-11 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, paragraph s B1 and B2 is are amended, … … B2 Except as permitted by paragraph B3, a first-time adopter shall apply the derecognition requirements in AASB 1 39 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 ( E xemptions from other Australian Accounting Standards ), paragraph s 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 1 39 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 . Amendments to AASB 2010-7 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 amend ed 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 .