AASB 2010-7 The requirements for classifying and 1 Jan 2018 The assessment has Amendments to Australian measuring financial liabilities were identified that the financial Accounting Standards added to AASB 9. The existing impact of available for sale arising from AASB 9 requirements for the classification of (AFS) assets will now be (December 2010) financial liabilities and the ability to reported through other use the fair value option have been comprehensive income (OCI) retained. However, where the fair and no longer recycled to the value option is used for financial profit and loss. liabilities the change in fair value is Changes in own credit risk in accounted for as follows: respect of liabilities designated at fair value The change in fair value through profit and loss will attributable to changes in credit risk is presented in other now be presented within other comprehensive income (OCI). comprehensive income (OCI); and Hedge accounting will be more closely aligned with Other fair value changes are common risk management presented in profit and loss. If practices making it easier to this approach creates or have an effective hedge. enlarges an accounting mismatch in the profit or loss, the For entities with significant effect of the changes in credit lending activities, an overhaul risk are also presented in profit of related systems and or loss. processes may be needed. AASB 2014-1 Amends various AASs to reflect the 1 Jan 2018 This amending standard will Amendments to Australian to defer the defer the application period of AASB’s decision mandatory application date of Accounting Standards AASB 9 to the 2018-19 [Part E Financial reporting period in AASB 9 to annual reporting periods Instruments] accordance with the transition beginning on or after 1 January 2018 requirements. as a consequence of Chapter 6 Hedge Accounting, and to amend reduced disclosure requirements. AASB 2014-7 Amends various AASs to incorporate 1 Jan 2018 The assessment has Amendments to Australian the consequential amendments indicated that there will be no arising from the issuance of AASB 9. Accounting Standards significant impact for the arising from AASB 9 public sector. AASB 15 Revenue from The core principle of AASB 15 1 Jan 2018 The changes in revenue Contracts with Customers requires an entity to recognise recognition requirements in revenue when the entity satisfies a AASB 15 may result in performance obligation by changes to the timing and transferring a promised good or amount of revenue recorded service to a customer. in the financial statements. The Standard will also require additional disclosures on service revenue and contract modifications.
AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) The requirements for classifying and measuring financial liabilities were added to AASB 9. The existing requirements for the classification of financial liabilities and the ability to use the fair value option have been retained. However, where the fair value option is used for financial liabilities the change in fair value is accounted for as follows: The change in fair value attributable to changes in credit risk is presented in other comprehensive income (OCI); and Other fair value changes are presented in profit and loss. If this approach creates or enlarges an accounting mismatch in the profit or loss, the effect of the changes in credit risk are also presented in profit or loss. 1 Jan 2018 The assessment has identified that the financial impact of available for sale (AFS) assets will now be reported through other comprehensive income (OCI) and no longer recycled to the profit and loss. Changes in own credit risk in respect of liabilities designated at fair value through profit and loss will now be presented within other comprehensive income (OCI). Hedge accounting will be more closely aligned with common risk management practices making it easier to have an effective hedge. For entities with significant lending activities, an overhaul of related systems and processes may be needed. AASB 2014-1 Amendments to Australian Accounting Standards [Part E Financial Instruments] Amends various AASs to reflect the AASB’s decision to defer the mandatory application date of AASB 9 to annual reporting periods beginning on or after 1 January 2018 as a consequence of Chapter 6 Hedge Accounting, and to amend reduced disclosure requirements. 1 Jan 2018 This amending standard will defer the application period of AASB 9 to the 2018-19 reporting period in accordance with the transition requirements. AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 Amends various AASs to incorporate the consequential amendments arising from the issuance of AASB 9. 1 Jan 2018 The assessment has indicated that there will be no significant impact for the public sector. AASB 15 Revenue from Contracts with Customers The core principle of AASB 15 requires an entity to recognise revenue when the entity satisfies a performance obligation by transferring a promised good or service to a customer. 1 Jan 2018 The changes in revenue recognition requirements in AASB 15 may result in changes to the timing and amount of revenue recorded in the financial statements. The Standard will also require additional disclosures on service revenue and contract modifications.