AASB 1 (July 2004, as amended)AASB 1 (July 2004, as amended)

AASB 1 (July 2004, as amended)

12 Paragraphs 25A, 26 and 43A are amended and paragraph 25AA, a heading and paragraphs 34D-34G, a heading above paragraph 36D and paragraphs 36D, 36E and 47M are added.

25A AASB 139 permits a financial asset liability to be designated on initial recognition as available for sale or a financial instrument (provided it meets certain criteria) to be designated as a financial asset or financial liability at fair value through profit or loss provided it meets certain criteria. Despite this requirement, a first-time adopter of Australian Accounting Standards exceptions apply in the following circumstances,

(a) any entity is permitted to make an available-for-sale designation at the date of transition to Australian equivalents to IFRSs.

(b) an entity that presents its first Australian-equivalents-to-IFRSs financial statements for an annual period beginning on or after 1 September 2006—such an entity is permitted to designate, at the date of transition to Australian equivalents to IFRSs, any financial asset or financial liability as at fair value through profit or loss provided the asset or liability meets the criteria in paragraph 9(b)(i), 9(b)(ii) or 11A of AASB 139 at that date.

(c) an entity that presents ...

(e) ... at the same time they are designated as at fair value through profit or loss.

25AA AASB 9 Financial Instruments permits a financial asset to be designated on initial recognition as a financial asset measured at fair value through profit or loss provided that the financial asset meets the criterion in paragraph 4.5 of AASB 9. Despite this requirement, a first-time adopter of Australian equivalents to IFRSs is permitted to designate, at the date of transition to Australian equivalents to IFRSs, any financial asset as measured at fair value through profit or loss provided the asset meets the criterion in paragraph 4.5 of AASB 9 at that date.

26 This Standard prohibits retrospective application of some aspects of other Australian equivalents to IFRSs relating to:

(a) …

(d) assets classified as held for sale and discontinued operations (paragraphs 34A and 34B); and

(e) some aspects of accounting for non-controlling interests (paragraph 34C).; and

(f) classification and measurement of financial assets (paragraphs 34D-34G).

Classification and measurement of financial assets

34D An entity shall assess whether a financial asset meets the conditions in paragraph 4.2 of AASB 9 on the basis of the facts and circumstances that exist at the date of transition to Australian equivalents to IFRSs.

34E An entity may designate a financial asset as measured at fair value through profit or loss in accordance with paragraph 4.5 of AASB 9 on the basis of the facts and circumstances that exist at the date of transition to Australian equivalents to IFRSs.