AASB 2009-11 - Amendments to Australian Accounting Standards arising from AASB 9 - December 2009
AASB 127 (March 2008, as amended)AASB 127 (March 2008, as amended)
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AASB 127 (March 2008, as amended)
27 Paragraphs 35, 37, 38 and 40 are amended and paragraph 45D is added as follows:
35 If a parent loses control of a subsidiary, … For example, if a subsidiary has cumulative exchange differences relating to a foreign operation available-for-sale financial assets and the parent loses control of the subsidiary, the parent shall reclassify to profit or loss the gain or loss previously recognised in other comprehensive income in relation to the foreign operation those assets. Similarly, …
37 The fair value of any investment retained in the former subsidiary at the date when control is lost shall be regarded as the fair value on initial recognition of a financial asset in accordance with AASB 9 Financial Instruments AASB 139 Financial Instruments: Recognition and Measurement or, when appropriate, the cost on initial recognition of an investment in an associate or jointly controlled entity.
38 When an entity prepares separate financial statements, it shall account for investments in subsidiaries, jointly controlled entities and associates either:
(a) at cost, or
(b) in accordance with AASB 9 and AASB 139.
The entity shall apply the same accounting for each category of investments. Investments accounted for at cost shall be accounted for in accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations when they are classified as held for sale (or included in a disposal group that is classified as held for sale) in accordance with AASB 5. The accounting for measurement of investments accounted for in accordance with AASB 9 and AASB 139 is not changed in such circumstances.
40 Investments in jointly controlled entities and associates that are accounted for in accordance with AASB 9 and AASB 139 in the consolidated financial statements shall be accounted for in the same way in the investor’s separate financial statements.
45D AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9, issued in December 2009, amended paragraphs 35, 37, 38 and 40. An entity shall apply those amendments when it applies AASB 9.