Australian Accounting Standards Board (AASB)/media/corporate/all...Australian Accounting Standards Board (AASB) 6 Yes / No / N/A Explanation (if required) AASB 3. Aus 1.7 Have the

Australian Accounting Standards Board (AASB)FACT SHEET February 2012

AASB 1053 Applications of Tiers of Accounting Standards(This fact sheet is based on the standard as at 1 January 2011.)

Important note:This standard is an Australian specific standard with no international equivalent.

AASB application dateAASB 1004 is applicable for annual reporting periods commencing on or after 1 July 2008.

APPLICATIONAASB 1053 is applicable for annual reporting periods commencing on or after 1 July 2013. Earlier application is permitted. If an entity applies this AASB earlier, it shall disclose that fact and apply the relevant it shall also adopt the relevant Standards that specify Tier 2 reporting requirements at the same time.

OBJECTIVEThe objective of this Standard is to set out the application of Tiers of Australian Accounting Standards to different categories of entities preparing general purpose financial statements.

APPLICATIONThis Standard applies to:

1. eachentitythatisrequiredtopreparefinancialreportsinaccordancewithPart2M.3ofthe Corporations Act;

2. generalpurposefinancialstatementsofeach reporting entity;

3. financialstatementsthatare,orareheldouttobe,generalpurposefinancialstatements;and

4. financialstatementsofGeneralGovernmentSectors(GGSs)preparedinaccordancewithAASB1049 Whole of Government and General Government Sector Financial Reporting.

PrESCrIBEd ACCOuNTINg TrEATmENTThereviseddifferentialreportingframeworktobeappliedbyreportingentitiespreparinggeneralpurposefinancialstatementsconsistsoftwotiersofreportingrequirements:

Tier 1: Full IFRSs as adopted in Australia

Tier 2: The Reduced Disclosure Requirements (RDR)

The RDR (or Tier 2) requirements comprise application of the recognition and measurement requirements of full IFRSs as adoptedinAustralia,butwithreduceddisclosures.

Australian Accounting Standards Board (AASB)

2

Therevisedframework,indicatingtheapplicationofthetierstothevariousclassesofentitieswithindifferentsectors,isasfollows:

Sector

For-profit Not-for-profit private For-profit and not-for-profit public

Tier 1

Full IFRSs as adopted in Australia Publiclyaccountable

Allnot-for-profitprivatesector entities have a choice of applying Tier 1 or Tier 2 requirements

Federal, State and Territory GovernmentsandLocalGovernments(includingwholeofgovernmentandgeneral government sector)

Tier 2

Reduced Disclosure Regime (entities may choose to apply Tier 1, that is, full IFRSs as adopted in Australia)

Non-publicly accountableEntities other than Tier 1 entities noted above

An entity is deemed to have ‘public accountability’ if:

a. Itsdebtorequityinstrumentsaretradedinapublicmarketoritisintheprocessofissuingsuchinstrumentsfortradinginapublicmarket(adomesticorforeignstockexchangeoranover-the-countermarket,includinglocalandregionalmarkets);or

b. Itholdsassetsinfiduciarycapacityforabroadgroupofoutsidersasoneofitsprimarybusinesses.Thisistypicallythecaseforbanks,creditunions,insurancecompanies,securitiesbrokers/dealers,mutualfundsandinvestmentbanks

Theadditionalexamplesofentitieshaving‘publicaccountability’include:

• Disclosingentities,eveniftheirdebtorequityinstrumentsarenottradedinapublicmarketorarenotintheprocessofbeingissuedfortradinginapublicmarket

• Cooperativesthatissuedebentures

• Registeredmanagedinvestmentschemes

• SuperannuationplansregisteredwiththeAustralianPrudentialRegulationAuthority(APRA)otherthanSmallAPRAFunds

• AuthorisedDeposit-TakingInstitutions.

TransitionFordetailsontransitioningtoRDRpleaserefertothefollowingflowdiagramsbelowextracteddirectlyoutofAASB1053.


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Moving from SPFRs to GPFRs

Moving between Tiers


4

dISCLOSurESReferAppendix1forachecklisttoassistwithAASB1053disclosurerequirements.

ImPOrTANT dEFINITIONS

Contributions non-reciprocal transfers to the entity.

Contributions by owners futureeconomicbenefitsthathavebeencontributedtotheentitybypartiesexternaltotheentity,otherthanthosewhichresultinliabilitiesoftheentity,thatgiverisetoafinancialinterestinthenetassetsoftheentitywhich

a) conveysentitlementbothtodistributionsoffutureeconomicbenefitsbytheentityduringitslife,suchdistributionsbeingatthediscretionoftheownershipgrouporitsrepresentatives,andtodistributionsofanyexcessofassetsoverliabilitiesintheeventoftheentitybeingwoundup,and/or

b) can be sold, transferred or redeemed.

Non-reciprocal transfer Atransferinwhichtheentityreceivesassetsorservicesorhasliabilitiesextinguishedwithoutdirectlygivingapproximatelyequalvalueinexchangetotheotherpartyorpartiestothetransfer.

restructure of administrative arrangements

The reallocation or reorganisation of assets, liabilities, activities and responsibilities amongst the entities that the government controls that occurs as a consequence of a rearrangement inthewayinwhichactivitiesandresponsibilitiesasprescribedunderlegislationorotherauthorityareallocatedbetweenthegovernment’scontrolledentities.

The scope of the requirements relating to restructures of administrative arrangements is limitedtothetransferofabusiness.Therequirementsdonotapplyto,forexample,atransferof an individual asset or a group of assets that is not a business.


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APPENdIx 1 – dISCLOSurE CHECkLISTThischecklistcanbeusedtoreviewyourfinancialstatements–youshouldcompletetheYes/No/N/AcolumnaboutwhethertherequirementisincludedandprovideanexplanationforNoanswerstoensurethecompletenessofdisclosures.

Yes / No / N/A

Explanation (if required)

AASB 1 Aus1.6

HavethefollowingdisclosuresbeenexcludedforthoseentitiespreparinggeneralpurposefinancialstatementsunderAustralianAccountingStandards– Reduced Disclosure Requirements?

• Paragraphs21-23,24(b),24(c)and25-33;and

• Inparagraph24,thetext‘Tocomplywithparagraph23’

AASB 1 RDR21.1

Dothefinancialstatementsforanentitywhereitisapplyinganentity’sforthefirsttimetheAustralianAccountingStandardsReducedDisclosureRequirementsAASB101includeatleasttwostatementsoffinancialposition,twostatementsofcomprehensiveincome,twoseparateincomestatements(ifpresented),twostatementsofcashflowsandtwostatementsofchangesin equity and related notes, including comparative information?

AASB 2. Aus1.6

HavethefollowingdisclosuresbeenexcludedforthoseentitiespreparinggeneralpurposefinancialstatementsunderAustralianAccountingStandards–ReducedDisclosureRequirements?

• Paragraphs45(c),45(d),46,47(a),47(b),47(c)(ii),47(c)(iii)and48–52;and

• Inparagraph47,thetext‘togiveeffecttotheprincipleinparagraph46,’.

AASB 2 RDR 46.1

For an entity that has equity-settled share-based payment arrangements, andisapplyingAustralianAccountingStandards–ReducedDisclosureRequirements,hasinformationabouthowitmeasuredthefairvalueofgoodsor services received or the fair value of the equity instruments granted been disclosed?Ifavaluationmethodologywasused,hastheentitydisclosedthemethod and its reason for choosing it?

AASB 2 RDR 46.2

For an entity that has cash-settled share-based payment arrangements, andisapplyingAustralianAccountingStandards–ReducedDisclosureRequirements,hastheentitydisclosedinformationabouthowtheliabilitywasmeasured?

AASB 2 RDR 50.1

ForanentityapplyingAustralianAccountingStandards–ReducedDisclosureRequirementshasthefollowinginformationabouttheeffectofshare-basedpaymenttransactionsontheentity’sprofitorlossfortheperiodandonitsfinancialpositionbeendisclosed:

a. thetotalexpenserecognisedinprofitorlossfortheperiod;and

b. the total carrying amount at the end of the period of liabilities arising from share-based payment transactions?


6

Yes / No / N/A


AASB 3. Aus 1.7


• Paragraphs59-63,Aus63.6–Aus63.9,B64(d),B64(e),B64(h),B64(k),B64(l),B64(m),B64(n)(ii),B64(o)(ii),B64(q),B65,B66,B67(a)–(c)andB67(e);

• intheheadingbeforeparagraphB64,thetext‘(applicationofparagraphs59and61)’;

• inparagraphB64,thetext‘Tomeettheobjectiveinparagraph59,’;

• inparagraphB64(j),thesentence‘Ifacontingentliability…liabilitycannotbe measured reliably.’; and

• inparagraphB67,thetext‘Tomeettheobjectiveinparagraph61,’.

AASB 3 RDR 65.1

For individually immaterial business combinations occurring during the reporting period that are material collectively, has an acquirer applying AustralianAccountingStandards–ReducedDisclosureRequirementsdisclosed in aggregate the information required by paragraphs B64(f), B64(g), B64(i),B64(n)(i),B64(o)(i)andB64(p)andthefirstsentenceofparagraphB64(j)?

AASB 3 RDR 67.1


ThereconciliationspecifiedinparagraphB67(d)forpriorperiods.

AASB 5. Aus 1.9


• paragraphs33(b),33(d),41(d)and42;and

• thesecondandthirdsentenceinparagraph35,includingparagraphs35(a)–(c).

AASB7.Aus2.9


• paragraphs6,9–11,12A(b),12A(e),15,18,19,20(c),20(d),25-27,27A,27B,30(b)–(e),31–42,B1–B4andB7–B28;

• inparagraph8(a),thetext‘showingseparately…AASB139’;

• inparagraph8(e),thetext‘showingseparately…AASB139’;

• inparagraph20(a)(i),thetext‘showingseparately…AASB139’;

• inparagraph23(d),thetext‘showingthe…income’;and

• thefourthsentenceinparagraph28,includingparagraphs28(a)and(b)?


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Yes / No / N/A


AASB7RDR18.1

Forloanspayablerecognisedattheendofthereportingperiodforwhichthereisabreachoftermsordefaultofprincipal,interest,sinkingfund,orredemption terms that has not been remedied by the end of the reporting period,hastheentityapplyingAustralianAccountingStandards–ReducedDisclosureRequirementsdisclosedthefollowing?

a. details of that breach or default;

b. the carrying amount of the related loans payable at the end of the reporting period; and

c. whetherthebreachordefaultwasremedied,orthetermsoftheloanspayablewererenegotiated,beforethefinancialstatementswereauthorised for issue.

AASB7RDR27.1

HasthenentitythatisapplyingAustralianAccountingStandards–ReducedDisclosureRequirementsdisclosed,forallfinancialassetsandfinancialliabilities that are measured at fair value, the basis for determining fair value, forexamplequotedmarketpriceinanactivemarketoravaluationtechnique?When a valuation technique is used, has the entity disclosed the assumptions appliedindeterminingfairvalueforeachclassoffinancialassetsorfinancialliabilities.Forexample,ifapplicable,hastheentitydisclosedinformationabout the assumptions relating to prepayment rates, rates of estimated credit losses, and interest rates or discount rates?

AASB 101.Aus 1.8


• paragraphs10(f),15,16,Aus16.3,39(c),42(b),61,65,80A,90-92,94,104,131and134–138;

• thesecondsentenceinparagraph39;and

• inparagraph107,thetext‘andtherelatedamountofdividendspershare’.

AASB 102. Aus 1.8


• Paragraphs36(c),36(g)andAus36.1(f).

AASB107.Aus 1.8


• ParagraphsAus20.1,Aus20.2,40,41,46,50(d)and52.

AASB 108.Aus2.9


• Paragraphs28(b),28(d),28(e),28(h),30,31and40.

AASB 108 RDR 28.1

ForanentityapplyingAustralianAccountingStandards–ReducedDisclosureRequirements,hasitdisclosedanexplanationifitisimpracticabletodetermine the amounts required to be disclosed by paragraph 28(f)(i) or 28(g)?


8

Yes / No / N/A


AASB 110 Aus 1.8


• paragraphs13,19and20;and

• inparagraph22(a),thetext‘(AASB3…insuchcases)’.

AASB 111 Aus 1.8


• Paragraphs40,41and45ofthisStandard.

AASB 112 Aus 1.8


• paragraphs81(ab),81(f),81(i)–(k),82and87–87C;and

• thesecondsentenceinparagraph82A.

AASB 112 RDR 81.1

HasanentityapplyingAustralianAccountingStandards–ReducedDisclosure Requirements disclosed the aggregate amount of current and deferredincometaxrelatingtoitemsrecognisedinothercomprehensiveincome?

AASB 116 Aus 1.8


• Paragraphs73(e)(viii),74(b),74(d),77(e),Aus77.1and79.

AASB 116 RDR73.1

HasthefollowingdisclosurebeenexcludedforthoseentitiespreparinggeneralpurposefinancialstatementsunderAustralianAccountingStandards–ReducedDisclosureRequirements?

• Thereconciliationspecifiedinparagraph73(e)forpriorperiods.

AASB117Aus 1.8


• paragraphs31(c),31(d),35(b)and48;

• inparagraph31(b),thetext‘areconciliation…presentvalue.’and,inthesecondsentence,thetext‘Inaddition,anentityshalldisclose’and‘andtheir present value,’;

• inparagraph35(c),thetext‘withseparateamounts…subleasepayments’; and

• inparagraph56(a),thewords‘intheaggregateand’.

AASB119Aus1.9


• paragraphs30(c)(ii),34B,47,120,120A(c),120A(d),120A(e)(i)–(iii),120A(e)(vii),120A(e)(viii),120A(l),120A(n)(iii),120A(o)–(q),124(b)and143;

• thethirdsentenceinparagraph23;

• inparagraph120A(g),thetext‘foreachof…inparagraph58(b)’;

• inparagraph120A(m),thetext‘aswellas…paragraph104A’;and

• thesecondsentenceinparagraph131.


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Yes / No / N/A


AASB119RDR 120A.1

HasanentityapplyingAustralianAccountingStandards–ReducedDisclosureRequirements disclosed a reconciliation of opening and closing balances of thedefinedbenefitobligationshowingseparatelybenefitspaidandallotherchanges? These disclosures may be made in total, separately for each plan, or in such groupings as are considered to be the most useful.

AASB119RDR 120A.2


• Thereconciliationsspecifiedinparagraphs120A(e)andRDR120A.1forprior periods.

AASB 121 Aus 2.8


• Paragraphs55-57ofthisStandard.

AASB 123 Aus 1.6


• Paragraph26(b)ofthisStandard.

AASB 124 Aus 1.11


• paragraphsAus13.1,26,27andAus29.1–Aus29.9.3;

• inparagraph17,thetext‘andforeachof…(e)share-basedpayment’;and

• inparagraph22,thetext‘(seeparagraph34BofAASB119)’.

AASB127Aus 1.6


• paragraphs41(b),41(e),41(f),42,43(b),43(c)andAus43.1;and

• inparagraph43,thetext‘(otherthanaparentcoveredbyparagraph42)’.

AASB127Aus 10.1

Notwithstandingparagraph10(d),hastheentitythatisapplyingAustralianAccountingStandards–ReducedDisclosureRequirementsbeingaparentthat meets the criteria in paragraphs 10(a), 10(b) and 10(c) not presented consolidatedfinancialstatementsifitsultimateoranyintermediateparentproducesconsolidatedfinancialstatementsavailableforpublicuseand:

a. the parent and its ultimate or intermediate parent are:

(i) …

(ii) bothentitiescomplyingwithAustralianAccountingStandards–Reduced Disclosure Requirements; or

b. theparentisanentitycomplyingwithAustralianAccountingStandards–Reduced Disclosure Requirements and its ultimate or intermediate parent isanot-for-profitentitycomplyingwithAustralianAccountingStandards?


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Yes / No / N/A


AASB127RDR 43.1

Hasaparent,venturerwithaninterestinajointlycontrolledentityoraninvestorinanassociatethatpreparesseparatefinancialstatementsandisapplyingAustralianAccountingStandards–ReducedDisclosureRequirements, disclosed a description of the methods used to account for the investments in subsidiaries, jointly controlled entities and associates?

AASB 128 Aus1.9


• Paragraphs37(b)–(i).

AASB 128 Aus 13.1

Notwithstandingparagraph13(c)(iv),hastheentitythatisapplyingAustralianAccountingStandards–ReducedDisclosureRequirementsbeinganinvestorthat meets the criteria in paragraphs 13(c)(i), 13(c)(ii) and 13(c)(iii) not applied the equity method in accounting for an interest in an associate if its ultimate or anyintermediateparentproducesconsolidatedfinancialstatementsavailablefor public use and:

a. the investor and its ultimate or intermediate parent are:

(i) ….


b. theinvestorisanentitycomplyingwithAustralianAccountingStandards–Reduced Disclosure Requirements and its ultimate or intermediate parent isanot-for-profitentitycomplyingwithAustralianAccountingStandards?

AASB 131 Aus 1.8


• Paragraph56ofthisStandard.

AASB 131 Aus 2.1

Notwithstandingparagraph2(c)(iv),hastheentitythatisapplyingAustralianAccountingStandards–ReducedDisclosureRequirementsbeingaventurerthat meets the criteria in paragraphs 2(c)(i), 2(c)(ii) and 2(c)(iii) not applied proportionate consolidation or the equity method in accounting for an interest in a jointly controlled entity if its ultimate or any intermediate parent produces consolidatedfinancialstatementsavailableforpublicuseand:

a. the venturer and its ultimate or intermediate parent are:

(i) …..


b. theventurerisanentitycomplyingwithAustralianAccountingStandards–Reduced Disclosure Requirements and its ultimate or intermediate parent isanot-for-profitentitycomplyingwithAustralianAccountingStandards?

AASB 134 Aus 1.10


• paragraphs5(f),16(g),19and21;and

• inparagraph16(i),thesentence‘Inthecaseof…requiredbyAASB3Business Combinations’?


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Yes / No / N/A


AASB 134 RDR19.1

Hasanentity’sinterimfinancialreportthatisincompliancewiththisStandardasitappliestoentitiesapplyingtheAustralianAccountingStandards–ReducedDisclosureRequirements,disclosedthatfact?AninterimfinancialreportshallnotbedescribedascomplyingwithAustralianAccountingStandards–ReducedDisclosureRequirementsunlessitcomplieswithalloftherequirementsofAustralianAccountingStandards–ReducedDisclosureRequirements.

AASB 136 Aus 1.8



AASB137Aus 1.8


• paragraphs84(b),84(e)and85(c);

• inparagraph75,thetext‘Ifanentitystartsto…ofthefinancialstatements.’; and

• inparagraph85(b),thetext‘Wherenecessary…paragraph48’.

AASB 138 Aus 1.8


• Paragraphs118(e)(vii),120,124(a)(iii),Aus124.1and128ofthisStandard.

AASB 138 RDR 118.1


• Paragraph118(e)forpriorperiods.

AASB 140 Aus 1.6


• paragraphs75(b),75(c),75(f),76(e),77,79(d)(vi),79(d)(vii)and79(e);

• inparagraph75(d),thetext‘includingastatement…marketdata’;

• inparagraph76(a),thetext‘disclosingseparately…anasset’;and

• inparagraph79(d)(i),thetext‘disclosingseparately…anasset’.

AASB 140 RDR76.1


• Thereconciliationspecifiedinparagraph76forpriorperiods.

AASB 141 Aus 1.8


• Paragraphs40,43–46,48,49,51–53,54(c),55,56and57(c)ofthisStandard.

AASB 141 RDR 50.1


• Thereconciliationspecifiedinparagraph50forpriorperiods.


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Yes / No / N/A


AASB 1050.6A


• paragraphs7(a)(ii),7(b)(ii)and8;and

• inparagraph14,thewords‘andbyactivity’inthethirdsentence.

AASB 1054 5A



AASB 1054 RDR7.1

HanentitywhosefinancialstatementscomplywithAustralianAccountingStandards–ReducedDisclosureRequirementsmadeanexplicitandunreserved statement of such compliance in the notes? An entity shall not describefinancialstatementsascomplyingwithAustralianAccountingStandards–ReducedDisclosureRequirementsunlesstheycomplywithalltherequirementsofAustralianAccountingStandards–ReducedDisclosureRequirements.

AASB 1052.10A


• Paragraphs11–21ofthisStandard.

Interpretation 2 Aus13.5


• Paragraph13ofthisInterpretation.


HanentitywhosefinancialstatementscomplywithAustralianAccountingStandards–ReducedDisclosureRequirementsexcludedthetext‘,but:…elements in the arrangement’ in paragraph 15(b) of this Interpretation?



• Paragraphs11and13ofthisInterpretation.




Interpretation 17Aus17.5







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Yes / No / N/A




• Paragraphs6,6Aand7ofthisInterpretation.

Interpretation 1052 Aus23A


• paragraph16;and

• thefirstandsecondsentenceinparagraph59.

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