Amendments to AASB 121Amendments to AASB 121

Amendments to AASB 121

37 In the definition of ‘foreign operation’ in paragraph 8 and in paragraphs 11 and 18, ‘joint venture’ is amended to ‘joint arrangement’ and ‘joint ventures’ is amended to ‘joint arrangements’.

38 In paragraphs 3(b) and 44 ‘proportionate consolidation’ and in paragraph 33 ‘proportionately consolidated’ are deleted.

39 Paragraphs 19, 45, 46 and 48A are amended (new text is underlined and deleted text is struck through) and paragraph 60F is added as follows:

19 This Standard also permits a stand-alone entity preparing financial statements or an entity preparing separate financial statements in accordance with AASB 127 Consolidated and Separate Financial Statements to present its financial statements in any currency (or currencies). If the …

45 The incorporation of the results and financial position of a foreign operation with those of the reporting entity follows normal consolidation procedures, such as the elimination of intragroup balances and intragroup transactions of a subsidiary (see AASB 127 AASB 10 Consolidated Financial Statements and AASB 131 Interests in Joint Ventures). However, …

46 When the financial statements of a foreign operation are as of a date different from that of the reporting entity, the foreign operation often prepares additional statements as of the same date as the reporting entity’s financial statements. When this is not done, AASB 127 AASB 10 allows the use of a different date provided that the difference is no greater than three months and adjustments are made for the effects of any significant transactions or other events that occur between the different dates. In such a case, the assets and liabilities of the foreign operation are translated at the exchange rate at the end of the reporting period of the foreign operation. Adjustments are made for significant changes in exchange rates up to the end of the reporting period of the reporting entity in accordance with AASB 127 AASB 10. The same approach is used in applying the equity method to associates and joint ventures and in applying proportionate consolidation to joint ventures in accordance with AASB 128 Investments in Associates and AASB 131 (August 2011).

48A In addition to the disposal of an entity’s entire interest in a foreign operation, the following partial disposals are accounted for as disposals even if the entity retains an interest in the former subsidiary, associate or jointly controlled entity:

(a) when the partial disposal involves the loss of control of a subsidiary that includes a foreign operation, regardless of whether the entity retains a non-controlling interest in its former subsidiary after the partial disposal; and

(b) when the retained interest after the partial disposal of an interest in the loss of significant influence over an a joint arrangement or a partial disposal of an interest in an associate that includes a foreign operation is a financial asset that includes a foreign operation.; and