The Australian Accounting Standards Board (AASB) issued two new amending standards which affect 27 existing standards as a result of the International Accounting Standards Board's (IASB's) Improvements to IFRSs, which was released in May 2008.
The annual improvements project will implement non-urgent but necessary amendments to standards. Some amendments to standards result in accounting changes for presentation, recognition or measurement purposes. Other amendments are terminology and editorial changes, with minimal effect on accounting.
The two amending standards released by the AASB are:
- AASB 2008 - 5 Amendments to Australian accounting standards arising from the annual improvements project
- AASB 2008 - 6 Further amendments to Australian accounting standards arising from the annual improvements project
AASB 2008 - 5 amends the existing standards AASB 5, 7, 101, 102, 107, 108, 110, 116, 118, 119, 120, 123, 127, 128, 129, 131, 132, 134, 136, 138, 139, 140, 141, 1023 and 1038.
AASB 2008 - 6 amends the existing standards AASB 1 and 5.
The IASB also recently issued an amendment to IAS 39 Financial instruments: recognition and measurement relating to eligible hedged items.
This amendment has not been adopted by the AASB, but it is expected that the board will deliberate on this amendment soon.
AASB 2008 - 5 and AASB 2008 - 6
The application date for AASB 2008 - 5 is 1 January 2009 and 1 July 2009 for AASB 2008 - 6, with early adoption permitted for annual reporting periods beginning on or after 1 January 2005, but before the amending standard's application date.
AASB 2008 - 5 includes amendments to various standards, each of which can be separately adopted prior to January 2009, provided the early application conditions in the particular standard are satisfied.
AASB 2008 - 6 cannot be adopted for annual periods beginning before 1 July 2009 unless it also applies AASB 127 Consolidated and separate financial statements, which was amended by AASB 2008 - 5 in July 2008.
IASB 39
The IASB issued Eligible hedged items, which is an amendment to IAS 39 Financial instruments: recognition and measurement.
Responses to the exposure draft Exposures qualifying for hedge accounting indicated diversity in practice in two situations:
- the designation of a one-sided risk in a hedged item
- the designation of inflation as a hedged risk or portion in particular situations
This amendment includes additional paragraphs to IAS 39, which develops application guidance to illustrate how the principles underlying hedge accounting should be applied in the two situations.
The IASB's published effective date is for annual reporting periods beginning on or after 1 July 2009. Retrospective application must be in accordance with IAS 8 Accounting policies, changes in accounting estimates and errors.
Early application for annual reporting periods commencing before 1 July 2009 is permitted.
This amendment has not been adopted by the AASB, but it is expected that the AASB will deliberate on this amendment shortly.
Further information
