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AASB 2010-1 Amendments to Australian Accounting Standards - Limited Exemption from Comparative AASB 7 Disclosures for First-time Adopters - February 2010

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AASB Standard
AASB 2010-1
February 2010
 
 
 
 
Amendments to Australian Accounting Standards – Limited Exemption from Comparative AASB 7 Disclosures for First-time Adopters
 
[AASB 1 & AASB 7]
 



Obtaining a Copy of this Accounting Standard
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AUSTRALIA
 
 
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COPYRIGHT
 
© Commonwealth of Australia 2010
 
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.
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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
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CONTENTS
Preface
Accounting Standard
AASB 2010-1 AmenDMENTS TO aUSTRALIAN aCCOUNTING sTANDARDS – Limited Exemption from Comparative AASB 7 Disclosures for First-time Adopters
 
Paragraphs
Objective                                                                                                                        1
Application                                                                                                             2 – 5
Amendments to AASB 1                                                                                      6 – 7
Amendment to AASB 7                                                                                               8
 
Australian Accounting Standard AASB 2010-1 Amendments to Australian Accounting Standards – Limited Exemption from Comparative AASB 7 Disclosures for First-time Adopters is set out in paragraphs 1 – 8.  All the paragraphs have equal authority.
 
Preface
Standards Amended by AASB 2010-1
This Standard makes amendments to the following Australian Accounting Standards:
1.             AASB 1 First-time Adoption of Australian Accounting Standards; and
2.             AASB 7 Financial Instruments: Disclosures.
These amendments principally give effect to extending the transition provisions of AASB 2009-2 Amendments to Australian Accounting Standards – Improving Disclosures about Financial Instruments to first-time adopters of Australian Accounting Standards.
Main Features of this Standard
Application Date
This Standard is applicable to annual reporting periods beginning on or after 1 July 2010.  Early adoption is permitted for annual reporting periods beginning on or after I January 2005 but before 1 July 2010.  If an entity applies this Standard to such an annual reporting period, it shall disclose that fact.
Main Requirements
First-time adopters of Australian Accounting Standards are permitted to use the same transition provisions permitted for existing preparers of financial statements prepared in accordance with Australian Accounting Standards that are included in AASB 2009-2.
 
aCCOUNTING STANDARD AASB 2010-1
The Australian Accounting Standards Board makes Accounting Standard AASB 2010-1 Amendments to Australian Accounting Standards – Limited Exemption from Comparative AASB 7 Disclosures for First-time Adopters under section 334 of the Corporations Act 2001.
 
 
Kevin M. Stevenson

Dated 3 February 2010
Chair – AASB

 
 
aCCOUNTING STANDARD AASB 2010-1
AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS – Limited Exemption from Comparative AASB 7 Disclosures for First-time Adopters
Objective
1              The objective of this Standard is to make amendments to:
(a)          AASB 1 First-time Adoption of Australian Accounting Standards; and
(b)          AASB 7 Financial Instruments: Disclosures.
Application
2              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 statements of each other reporting entity; and
(c)          financial statements that are, or are held out to be, general purpose financial statements.
3              This Standard applies to annual reporting periods beginning on or after 1 July 2010.
4              This Standard may be applied to annual reporting periods beginning on or after 1 January 2005 but before 1 July 2010.  If an entity applies this Standard to such an annual reporting period, it shall disclose that fact.
5              This Standard uses underlining, striking out and other typographical material to identify some of the amendments to a Standard, in order to make the amendments more understandable.  However, the amendments made by this Standard do not include that underlining, striking out or other typographical material.
Amendments to AASB 1
6              Paragraph 39C is added:
39C       AASB 2010-1 Amendments to Australian Accounting Standards – Limited Exemption from Comparative AASB 7 Disclosures for First-time Adopters, issued in February 2010, added paragraph E3.  An entity shall apply that amendment for annual reporting periods beginning on or after 1 July 2010.  Earlier application is permitted.  If an entity applies the amendment for an earlier period, it shall disclose that fact.
7              A heading, paragraph E3 and a footnote are added:
Disclosures about financial instruments
E3          A first-time adopter may apply the transition provisions in paragraph 44G of AASB 7.1
1        Paragraph E3 was added as a consequence of AASB 2010-1 Amendments to Australian Accounting Standards – Limited Exemption from Comparative AASB 7 Disclosures for First-time Adopters issued in February 2010.  To avoid the potential use of hindsight and to ensure that first-time adopters are not disadvantaged as compared with current Australian Accounting Standards preparers, the AASB decided that first-time adopters should be permitted to use the same transition provisions permitted for existing preparers of financial statements prepared in accordance with Australian Accounting Standards that are included in AASB 2009-2 Amendments to Australian Accounting Standards – Improving Disclosures about Financial Instruments.
Amendment to AASB 7
8              Paragraph 44G is amended (new text is underlined and deleted text is struck through) and footnoted:
44G       AASB 2009-2 Amendments to Australian Accounting Standards – Improving Disclosures about Financial Instruments, issued in April 2009, amended paragraphs 27, 39 and B11 and added paragraphs 27A, 27B, B10A and B11A-B11F.  An entity shall apply those amendments for annual reporting periods beginning on or after 1 January 2009 that end on or after 30 April 2009. In the first year of application, an An entity need not provide comparative information for the disclosures required by the amendments for:
(a)    any annual or interim period, including any statement of financial position, presented within an annual comparative period ending before 31 December 2009, or
(b)    any statement of financial position as at the beginning of the earliest comparative period as at a date before 31 December 2009.
Earlier application is permitted.  If an entity applies the amendments for an earlier period, it shall disclose that fact.1
1        Paragraph 44G was amended as a consequence of AASB 2010-1 Amendments to Australian Accounting Standards – Limited Exemption from Comparative AASB 7 Disclosures for First-time Adopters issued in February 2010.  The AASB amended paragraph 44G to clarify its conclusions and intended transition for AASB 2009-2 Amendments to Australian Accounting Standards – Improving Disclosures about Financial Instruments.