AASB 1 (May 2009, as amended)AASB 1 (May 2009, as amended)

AASB 1 (May 2009, as amended)

8 Paragraph 29 is amended and paragraphs 29A and 39B are added as follows:

29 An entity is permitted to designate a previously recognised financial asset or financial liability as a financial asset or financial liability at measured at fair value through profit or loss or a financial asset as available for sale in accordance with paragraph D19A. The entity shall disclose the fair value of financial assets or financial liabilities so designated into each category at the date of designation and their classification and carrying amount in the previous financial statements.

29A An entity is permitted to designate a previously recognised financial liability as a financial liability at fair value through profit or loss in accordance with paragraph D19. The entity shall disclose the fair value of financial liabilities so designated at the date of designation and their classification and carrying amount in the previous financial statements.

39B AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9, issued in December 2009, amended paragraphs 29, B1 and D19, added paragraphs 29A, B8, D19A-D19C, E1 and E2. An entity shall apply those amendments when it applies AASB 9 Financial Instruments.

9 In Appendix B, paragraph B1 is amended, and a heading and paragraph B8 are added as follows:

B1 An entity shall apply the following exceptions:

(a) derecognition of financial assets and financial liabilities (paragraphs B2 and B3);

(b) hedge accounting (paragraphs B4-B6);, and

(c) non-controlling interests (paragraph B7).; and

(d) classification and measurement of financial assets (paragraph B8).

Classification and measurement of financial assets

B8 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 Accounting Standards.

10 In Appendix D (Exemptions from other Australian Accounting Standards), paragraph D19 is amended and paragraphs D19A-D19C are added as follows:

D19 AASB 139 permits a financial liability asset 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. Despite this requirement exceptions apply in the following circumstances:

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

(b) an entity is permitted to designate, at the date of transition to Australian Accounting Standards, 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.