AASB 128 (As applicable 1 July 2009)AASB 128 (As applicable 1 July 2009)

AASB 128 (As applicable 1 July 2009)

29 Paragraphs 1 and 18-19A of AASB 128 (July 2004, as applicable for annual reporting periods beginning on or after 1 July 2009) are amended and paragraph 41D is added as follows:

1 This Standard shall be applied in accounting for investments in associates. However, it does not apply to investments in associates held by:

(a) venture capital organisations, or

(b) mutual funds, unit trusts and similar entities including investment-linked insurance funds

that are measured upon initial recognition are designated as at fair value through profit or loss or are classified as held for trading and accounted for in accordance with AASB 9 Financial Instruments and AASB 139 Financial Instruments: Recognition and Measurement. An entity shall measure such Such investments shall be measured at fair value through profit or loss in accordance with AASB 9 AASB 139, with changes in fair value recognised in profit or loss in the period of the change. An entity holding such an investment shall make the disclosures required by paragraph 37(f).

18 An investor shall discontinue the use of the equity method from the date when it ceases to have significant influence over an associate and shall account for the investment in accordance with AASB 9 and AASB 139 from that date, provided the associate does not become a subsidiary or a joint venture as defined in AASB 131. On the loss of significant influence, …

19 When an investment ceases to be an associate and is accounted for in accordance with AASB 9 and AASB 139, the fair value of the investment at the date when it ceases to be an associate shall be regarded as its fair value on initial recognition as a financial asset in accordance with AASB 9 AASB 139.

19A If an investor loses significant influence over an associate, … For example, if an associate has cumulative exchange differences relating to a foreign operation available-for-sale financial assets and the investor loses significant influence over the associate, the investor shall reclassify to profit or loss the gain or loss previously recognised in other comprehensive income in relation to the foreign operation those assets. If …

41D AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9, issued in December 2009, amended paragraphs 1 and 18-19A. An entity shall apply those amendments when it applies AASB 9.