AASB 3 (March 2008, as amended)AASB 3 (March 2008, as amended)

AASB 3 (March 2008, as amended)

13 Paragraphs 16, 42 and 58 are amended and paragraph 64A is added as follows:

16 In some situations, Australian Accounting Standards provide for different accounting depending on how an entity classifies or designates a particular asset or liability. Examples of classifications or designations that the acquirer shall make on the basis of the pertinent conditions as they exist at the acquisition date include but are not limited to:

(a) classification of particular financial assets and liabilities as measured a financial asset or liability at fair value through profit or loss, or at amortised cost as a financial asset available for sale or held to maturity, in accordance with AASB 9 Financial Instruments and AASB 139 Financial Instruments: Recognition and Measurement;

(b) designation of a derivative instrument as a hedging instrument in accordance with AASB 139; and

(c) assessment of whether an embedded derivative should be separated from the a host contract outside the scope of AASB 9 in accordance with AASB 139 (which is a matter of ‘classification’ as this Standard uses that term).

42 In a business combination achieved in stages, the acquirer shall remeasure its previously held equity interest in the acquiree at its acquisition-date fair value and recognise the resulting gain or loss, if any, in profit or loss or other comprehensive income, as appropriate. In prior reporting periods, the acquirer may have recognised changes in the value of its equity interest in the acquiree in other comprehensive income (for example, because the investment was classified as available for sale). If so, the amount that was recognised in other comprehensive income shall be recognised on the same basis as would be required if the acquirer had disposed directly of the previously held equity interest.

58 ...

(b) Contingent consideration classified as an asset or a liability that:

(i) is a financial instrument and is within the scope of AASB 9 or AASB 139 shall be measured at fair value, with any resulting gain or loss recognised either in profit or loss or in other comprehensive income in accordance with that Standard AASB 9 or AASB 139 as applicable.

(ii) is not within the scope of AASB 9 or AASB 139 shall be accounted for in accordance with AASB 137 or other Australian Accounting Standards as appropriate.

64A AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9, issued in December 2009, amended paragraphs 16, 42 and 58. An entity shall apply those amendments when it applies AASB 9.