AASB 2007-7 Amendments to Australian Accounting Standards - June 2007

Accounting Standard AASB 2007- 7 June 2007 Amendments to Australian Accounting Standards [ AASB 1, AASB 2, AASB 4, AASB 5 , AASB 10 7 & AASB 1 2 8 ] Obtaining a Copy of this Accounting Standard This Standard is available on the AASB website: www.aasb.com.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] Website: www.aasb.com.au Other Enquiries Phone: (03) 9617 7600 Fax: (03) 9617 7608 COPYRIGHT © 2007 Commonwealth of Australia This AASB Standard contains International Accounting Standards Committee 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 International Accounting Standards Committee Foundation at www.iasb.org. ISSN 1036-4803 E-mail: [email protected] CONTENTS Preface Accounting Standard AASB 2007-7 AmenDMENTS TO aUSTRALIAN aCCOUNTING sTANDARDS Paragraphs Objective 1 Application 2 – 5 Amendment s to AASB 1 6 – 7 Amendment to AASB 2 8 Amendment to AASB 4 9 Amendment to AASB 5 10 Amendment s to AASB 10 7 1 1 – 1 2 Amendment to AASB 1 28 1 3 Australian Accounting Standard AASB 2007-7 Amendments to A ustralian Accounting Standards is set out in paragraphs 1 – 1 3 . All the pa ragraphs have equal authority. Preface Standards Amended by AASB 2007-7 This Standard makes amendments to the following Australian Accounting Standards : 1. AASB 1 First-time Adoption of Australian Equivalents to I nternational Financial R eporting S tandard s ; 2. AASB 2 Share-based Payment ; 3 . AASB 4 Insurance Contracts ; 4 . AASB 5 No n -current Assets Held for Sale and Discontinued Operations ; 5 . AASB 107 Cash Flow Statements ; and 6 . AASB 1 28 Investments in Associates . Main Features of this Standard Application Date This Standard is applicable to annual reporting periods beginning on or after 1 July 2007 , with early adoption permitted for annual reporting periods beginning on or after 1 January 2005 but b efore 1 July 2007 . An entity adopting this Standard early must adopt the whole Standard early. Main Requirements These amendments follow the issuance, in April 2007, of AASB 2007-4 Amendments to Australian Accounting Standards arising from ED 151 and Other Amendments . That Standard implemented the AASB’s decision that, in principle, all options that currently exist under I nternational Financial R eporting S tandard s should be included in the Australian equivalents to IFRSs and additional Australian disclosures should be eliminated, other than those considered particularly relevant in the Australian reporting environment. In addition to editorial amendments, this Standard removes the encouragement in paragraph Aus12.1 of AASB 107 to adopt a particular format for the cash flow statement, as it is no longer relevant due to the amendments made to AASB 107 by AASB 2007-4. The superseded implementation guidance accompanying AASB 4 is also del eted. aCCOUNTING STANDARD AASB 2007-7 The Australian Accounting Standards Board makes Accounting Standard AASB 2007-7 Amendments to Australian Accounting Standards under section 334 of the Corporations Act 2001 . D.G. Boymal Dated 28 June 2007 Chair – AASB aCCOUNTING STANDARD AASB 2007-7 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS Objective 1 The o bjective of this Standard is to make amendments to: (a) AASB 1 First-time Adoption of Australian Equivalents to I nternational Financial R eporting S tandard s ; (b) AASB 2 Share-based Payment ; ( c ) AASB 4 Insurance Contracts ; ( d ) AASB 5 No n -current Assets Held for Sale and Discontinued Operations ; ( e ) AASB 107 Cash Flow Statements ; and ( f ) AASB 1 28 Investments in Associates ; as a consequence of a review of Australian equivalents to International Financial Reporting Standards. Application 2 In respect of AASB 1, AASB 2, AASB 4, AASB 5 and AASB 128 , 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 reports of each other reporting entity; and (c) financial reports that are, or are held out to be, general purpose financial reports. 3 In respect of AASB 107 , 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; (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. 4 This Standard applies to annual reporting periods beginning on or after 1 July 2007 . 5 This Standard may be applied to annual reporting periods beginning on or after 1 January 2005 but before 1 July 2007 . Amendment s to AASB 1 6 In paragraph 12(b) , the reference to ‘ paragraphs 26-34 ’ is amended to ‘ paragraphs 26-34B’ . 7 In paragraph 34A, the reference to ‘effective date’ is amended to ‘application date’ (twice occurring) . Amendment to AASB 2 8 Paragraph IG8 of the Implementation Guidance accompanying AASB 2 is amended to read as follows: IG8 In paragraph 54 of AASB 2, the entity is encouraged, but not required, to apply the requirements of the Standard to other grants of equity instruments (i . e . grants other than those specified in paragraph 53 of the Standard ), if the entity has disclosed publicly the fair value of those equity instruments, measured at the measurement date. For example, such equity instruments include equity instruments for which the entity has disclosed in the notes to its financial statements the information required in the US by SFAS 123 Accounting for Stock ‑ based Compensation . Amendment to AASB 4 9 The Implementation Guidance accompanying AASB 4 is deleted. Amendment to AASB 5 10 At the end of the first sentence of p aragraph 43, the reference to ‘ the effective date of the Standard ’ is amended to ‘ the application date of the Standard ’ . Amendmen ts to AASB 10 7 1 1 Paragraph Aus12.1 is deleted . 1 2 In the Direct Method Cash Flow Statement in Appendix A, t he caption ‘ Net cash used in operating activities ’ is amended to ‘ Net cash from operating activities ’ . Amendment to AASB 1 28 1 3 P aragraph 3 5 is amended to read as follows: 3 5 . An investment in an associate shall be accounted for in the investor’s separate financial statements in accordance with paragraphs 37–42 of AASB 127.