classification and result in earlier recognition measurement of financial of impairment losses and assets, a new hedging at more regular intervals. accounting model and a While there will be no revised impairment loss significant impact arising model to recognise from AASB 9, there will be impairment losses earlier, a change to the way as opposed to the current financial instruments are approach that recognises disclosed impairment only when incurred. AASB 2010–7 The requirements for 1 January 2018 The assessment has Amendments to Australian classifying and measuring identified that the financial Accounting Standards financial liabilities were impact of available for arising from AASB 9 added to AASB 9. The (AFS) assets will now (December 2010) existing requirements for be reported through other the classification of comprehensive income financial liabilities and the (OCI) and no longer ability to use the fair value recycled to the profit and option have been loss. retained. However, where Changes in own credit risk the fair value option is in respect of liabilities used for financial liabilities designated at fair the change in fair value is through profit and loss will accounted for as follows: now be presented within The change in fair other comprehensive value attributable to income (OCI). changes in credit risk For entities with significant is presented in other lending activities, an comprehensive overhaul of related income (OCI); and systems and processes Other fair value may be needed. changes are presented in profit and Hedge accounting will be loss. If this approach more closely aligned with creates or enlarges an common risk accounting mismatch management practices in the profit or loss, making it easier to have the effect of the an effective hedge. changes in credit risk are also presented in For entities with significant profit or loss. lending activities, an overhaul of related systems and processes may be needed. Amends various AASs to 1 January 2018 The assessment has AASB 2014–7 incorporate the indicated that will be Amendments to Australian consequential no significant impact for Accounting Standards amendments arising from the public sector. arising from AASB 9 the issuance of AASB 9.
classification and measurement of financial assets, a new hedging accounting model and a revised impairment loss model to recognise impairment losses earlier, as opposed to the current approach that recognises impairment only when incurred. result in earlier recognition of impairment losses and at more regular intervals. While there will be no significant impact arising from AASB 9, there will be a change to the way financial instruments are disclosed 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 January 2018 The assessment has identified that the financial impact of available for (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 through profit and loss will now be presented within other comprehensive income (OCI). For entities with significant lending activities, an overhaul of related systems and processes may be needed. 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 2014–7 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 January 2018 The assessment has indicated that will be no significant impact for the public sector.
AnnualReport2016-2017wordwebversion.docx