Accounting Standard
AASB 2008-13
December 2008
Amendments to Australian Accounting Standards arising from AASB Interpretation 17 – Distributions of Non-cash Assets to Owners
[AASB 5 & AASB 110]
Obtaining a Copy of this Accounting Standard
This Standard is available on the AASB website: www.aasb.gov.au.
Alternatively, printed copies of this Standard are available for purchase by contacting:
The Customer Service Officer
Australian Accounting Standards Board
Level 7
600 Bourke Street
Melbourne Victoria
AUSTRALIA
Postal address:
PO Box 204
Collins Street West Victoria 8007
AUSTRALIA
Phone: (03) 9617 7637
Fax: (03) 9617 7608
E-mail: publications@aasb.gov.au
Website: www.aasb.gov.au
COPYRIGHT
© Commonwealth of Australia 2008
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.
All existing rights in this material are reserved outside Australia.
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
Other Enquiries
Phone: (03) 9617 7600
Fax: (03) 9617 7608
E-mail: standard@aasb.gov.au
CONTENTS
Preface
Accounting Standard
AASB 2008-13 AmenDMENTS TO aUSTRALIAN aCCOUNTING sTANDARDS aRISING FROM AASB Interpretation 17 – distributions of non-cash assets to owners
Paragraphs
Objective 1
Application 2 – 4
Amendment to AASB 5 5 – 10
Amendment to AASB 110 11
DELETED IFRS TEXT Page 8
Australian Accounting Standard AASB 2008-13 Amendments to Australian Accounting Standards arising from AASB Interpretation 17 – Distributions of Non-cash Assets to Owners is set out in paragraphs 1-11. All the paragraphs have equal authority.
Preface
Standards Amended by AASB 2008-13
This Standard makes amendments to the following Australian Accounting Standards:
1. AASB 5 Non-current Assets Held for Sale and Discontinued Operations; and
2. AASB 110 Events after the Balance Sheet Date.
These amendments arise from the issuance of AASB Interpretation 17 Distributions of Non-cash Assets to Owners.
Main Features of this Standard
Application Date
This Standard is applicable prospectively to annual reporting periods beginning on or after 1 July 2009. Retrospective application is not permitted. This Standard shall be applied when AASB Interpretation 17 is applied. Earlier application is permitted. If an entity applies this Interpretation for a period beginning before 1 July 2009, it shall disclose that fact and also apply AASB 3 Business Combinations (March 2008, as amended), AASB 127 Consolidated and Separate Financial Statements (as amended in May 2008) and AASB Interpretation 17 for the same period.
Main Requirements
The issuance of AASB Interpretation 17 necessitates consequential amendments to AASB 5 and AASB 110. The amendments are in respect of the classification, presentation and measurement of non-current assets held for distribution to owners in their capacity as owners and the disclosure requirements for dividends that are declared after the reporting period but before the financial statements are authorised for issue, respectively.
aCCOUNTING STANDARD AASB 2008-13
The Australian Accounting Standards Board makes Accounting Standard AASB 2008-13 Amendments to Australian Accounting Standards arising from AASB Interpretation 17 – Distributions of Non-cash Assets to Owners under section 334 of the Corporations Act 2001.
Bruce Porter
Dated 18 December 2008
Acting Chair – AASB
aCCOUNTING STANDARD AASB 2008-13
AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS ARISING FROM AASB Interpretation 17 – Distributions of non-cash assets to owners
Objective
1 The objective of this Standard is to make amendments to:
(a) AASB 5 Non-current Assets Held for Sale and Discontinued Operations
(b) AASB 110 Events after the Balance Sheet Date
as a consequence of the issuance of AASB Interpretation 17 – Distributions of Non-cash Assets to Owners in December 2008.
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 reports of each reporting entity; and
(c) financial reports that are, or are held out to be, general purpose financial reports.
3 This Standard applies prospectively to annual reporting periods beginning on or after 1 July 2009. Retrospective application is not permitted.
4 This Standard shall be applied when AASB Interpretation 17 is applied. This Standard may be applied to annual reporting periods beginning on or after 1 January 2005 but before 1 July 2009 provided AASB Interpretation 17 is also adopted early for the same period. When an entity applies this Standard to such an annual reporting period, it shall disclose that fact, and also apply AASB 3 Business Combinations (March 2008, as amended), AASB 127 Consolidated and Separate Financial Statements (as amended in May 2008) and AASB Interpretation 17.
Amendments to AASB 5
5 Paragraph 5A is added:
5A The classification, presentation and measurement requirements in this IFRS applicable to a non-current asset (or disposal group) that is classified as held for sale apply also to a non-current asset (or disposal group) that is classified as held for distribution to owners acting in their capacity as owners (held for distribution to owners).
6 The heading after paragraph 5A is amended to read as follows:
Classification of non-current assets (or disposal groups) as held for sale or as held for distribution to owners
7 The following sentence is added at the end of paragraph 8:
8 … The probability of shareholders’ approval (if required in the jurisdiction) should be considered as part of the assessment of whether the sale is highly probable.
8 Paragraph 12A is added:
12A A non-current asset (or disposal group) is classified as held for distribution to owners when the entity is committed to distribute the asset (or disposal group) to the owners. For this to be the case, the assets must be available for immediate distribution in their present condition and the distribution must be highly probable. For the distribution to be highly probable, actions to complete the distribution must have been initiated and should be expected to be completed within one year from the date of classification. Actions required to complete the distribution should indicate that it is unlikely that significant changes to the distribution will be made or that the distribution will be withdrawn. The probability of shareholders’ approval (if required in the jurisdiction) should be considered as part of the assessment of whether the distribution is highly probable.
9 Paragraph 15A and a footnote are added:
15A An entity shall measure a non-current asset (or disposal group) classified as held for distribution to owners at the lower of its carrying amount and fair value less costs to distribute[1].
10 Paragraph Aus44D is added:
Aus44D Paragraphs 5A, 12A and 15A were added and paragraph 8 was amended by this Standard which arose from AASB Interpretation 17 Distributions of Non-cash Assets to Owners in December 2008. Those amendments shall be applied prospectively to non-current assets (or disposal groups) that are classified as held for distribution to owners in annual periods beginning on or after 1 July 2009. Retrospective application is not permitted. Earlier application is permitted. If an entity applies the amendments for a period beginning before 1 July 2009 it shall disclose that fact and also apply AASB 3 (March 2008, as amended), AASB 127 Consolidated and Separate Financial Statements (as amended in May 2008) and AASB Interpretation 17 Distributions of Non-cash Assets to Owners.
Amendments to AASB 110
11 Paragraph 13 is amended to read as follows:
13 If dividends are declared after the reporting period but before the financial statements are authorised for issue, the dividends are not recognised as a liability at the end of the reporting period because no obligation exists at that time. Such dividends are disclosed in the notes in accordance with AASB 101 Presentation of Financial Statements.
deleted ifrs text
Deleted IFRS text is not part of AASB 2008-13.
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
Deleted IFRS 5 text is not part of AASB 5.
Paragraph 44D
Paragraphs 5A, 12A and 15A were added and paragraph 8 was amended by IFRIC 17 Distributions of Non-cash Assets to Owners in November 2008. Those amendments shall be applied prospectively to non-current assets (or disposal groups) that are classified as held for distribution to owners in annual periods beginning on or after 1 July 2009. Retrospective application is not permitted. Earlier application is permitted. If an entity applies the amendments for a period beginning before 1 July 2009 it shall disclose that fact and also apply IFRS 3 Business Combinations (as revised in 2008), IAS 27 (as amended in May 2008) and IFRIC 17.
[1] Costs to distribute are the incremental costs directly attributable to the distribution, excluding finance costs and income tax expense.
