Section 21 - Accounting Standard AASB 18 Presentation and Disclosure in Financial Statements - AASB 18 issued in June 2024 amended paragraphs 1 and 2. An entity shall apply those amendments when it applies AASB 18. | Zoe
Below the heading ‘References’, the references to AASB 101 and AASB 108 are amended. Paragraph 11 is amended and paragraph 18 is added. New text is underlined and deleted text is struck through.
• AASB 2 Share‑based Payment
• AASB 13 Fair Value Measurement
• AASB 132 Financial Instruments: Presentation
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11 An entity shall present disclose a gain or loss recognised in accordance with paragraphs 9 and 10 as a separate line item in the statement of profit or loss or disclose it in the notes.
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18 AASB 18 Presentation and Disclosure in Financial Statements issued in June 2024 amended paragraph 11. An entity shall apply those amendments when it applies AASB 18.
AASB Interpretation 20 Stripping Costs in the Production Phase of a Surface Mine (August 2015)
Below the heading ‘References’, the reference to AASB 101 is amended. New text is underlined and deleted text is struck through.
• AASB 102 Inventories
• AASB 116Property, Plant and Equipment
AASB Interpretation 21 Levies (August 2015)
Below the heading ‘References’, the references to AASB 101 and AASB 108 are amended. New text is underlined and deleted text is struck through.
• AASB 120 Accounting for Governments Grants and Disclosures of Government Assistance
• AASB 124 Related Party Disclosures
• AASB 134 Interim Financial Reporting
• AASB Interpretation 6 Liabilities arising from Participating in a Specific Market – Waste Electrical and Electronic Equipment
A footnote is added to ‘AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors.’ in paragraph A2. New text is underlined.
1 When it issued AASB 18 Presentation and Disclosure in Financial Statements in June 2024, the AASB changed the title of AASB 108 to Basis of Preparation of Financial Statements.
Below the heading ‘References’, the reference to AASB 108 is amended. New text is underlined and deleted text is struck through.
A footnote is added to ‘AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors;’ in paragraph A2(a). New text is underlined.
2 When it issued AASB 18 Presentation and Disclosure in Financial Statements in June 2024, the AASB changed the title of AASB 108 to Basis of Preparation of Financial Statements.
AASB Interpretation 23 Uncertainty over Income Tax Treatments (July 2017)
Below the heading ‘References’, the references to AASB 101 and AASB 108 are amended. Paragraphs 14 and A4 are amended and paragraph B1A is added. New text is underlined and deleted text is struck through.
• AASB 101 Presentation of Financial Statements
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Changes in facts and circumstances
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14 An entity shall reflect the effect of a change in facts and circumstances or of new information as a change in accounting estimate applying AASB 108 Basis of Preparation of Financial StatementsAccounting Policies, Changes in Accounting Estimates and Errors. An entity shall apply AASB 110 Events after the Reporting Period to determine whether a change that occurs after the reporting period is an adjusting or non‑adjusting event.
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Application Guidance
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A4 When there is uncertainty over income tax treatments, an entity shall determine whether to disclose:
(a) judgements made in determining taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates applying paragraph 27G of AASB 108122 of AASB 101 Presentation of Financial Statements; and
(b) information about the assumptions and estimates made in determining taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates applying paragraphs 31A–31E of AASB 108125–129 of AASB 101.
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B1A AASB 18 Presentation and Disclosure in Financial Statements issued in June 2024 amended paragraphs 14 and A4. An entity shall apply those amendments when it applies AASB 18.
AASB Interpretation 107 Introduction of the Euro (August 2015)
Below the heading ‘References’, the references to AASB 101 and AASB 108 are amended. New text is underlined and deleted text is struck through.
AASB Interpretation 110 Government Assistance – No Specific Relation to Operating Activities (August 2015)
Below the heading ‘References’, the reference to AASB 108 is amended. New text is underlined and deleted text is struck through.
• AASB 120 Accounting for Government Grants and Disclosure of Government Assistance
AASB Interpretation 125 Income Taxes – Changes in the Tax Status of an Entity or its Shareholders (August 2015)
Below the heading ‘References’, the references to AASB 101 and AASB 108 are amended. New text is underlined and deleted text is struck through.
AASB Interpretation 129 Service Concession Arrangements: Disclosures (August 2015)
Below the heading ‘References’, the reference to AASB 101 is amended. New text is underlined and deleted text is struck through.
• Interpretation 12 Service Concession Arrangements
AASB Interpretation 132 Intangible Assets – Web Site Costs (August 2015)
Below the heading ‘References’, the reference to AASB 101 is amended. Paragraphs 5, AusCF5 and Aus10.4 are amended. Paragraph Aus10.5 is added. New text is underlined and deleted text is struck through.
• AASB 15 Revenue from Contracts with Customers
• AASB 102 Inventories
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Issue
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5 This Interpretation does not apply to expenditure on purchasing, developing, and operating hardware (eg web servers, staging servers, production servers and Internet connections) of a web site. Such expenditure is accounted for under AASB 116. Additionally, when an entity incurs expenditure on an Internet service provider hosting the entity’s web site, the expenditure is recognised as an expense under paragraph 46 of AASB 18 AASB 101.88 and the Conceptual Framework for Financial Reporting when the services are received.
AusCF5 Notwithstanding paragraph 5, in respect of AusCF entities, this Interpretation does not apply to expenditure on purchasing, developing, and operating hardware (eg web servers, staging servers, production servers and Internet connections) of a web site. Such expenditure is accounted for under AASB 116. Additionally, when an entity incurs expenditure on an Internet service provider hosting the entity’s web site, the expenditure is recognised as an expense under paragraph 46 of AASB 18 AASB 101.88 and the Framework for the Preparation and Presentation of Financial Statements (as identified in AASB 1048 Interpretation of Standards)AusCF1 when the services are received.
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Aus10.4 AASB 2019-1 Amendments to Australian Accounting Standards – References to the Conceptual Framework, issued in 2019, added AusCF paragraphs and amended paragraph 5. An entity shall apply the amendments for annual periods beginning on or after 1 January 2020. Earlier application is permitted if at the same time an entity also applies all other amendments made by AASB 2019‑1\. An entity shall apply the amendments to Interpretation 132 retrospectively in accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors.2 However, if an entity determines that retrospective application would be impracticable or would involve undue cost or effort, it shall apply the amendments to Interpretation 132 by reference to paragraphs 23– 28, 50–53 and 54F of AASB 108.
2 When it issued AASB 18 in June 2024, the AASB changed the title of AASB 108 to Basis of Preparation of Financial Statements.
Aus10.5 AASB 18 Presentation and Disclosure in Financial Statements issued in June 2024 amended paragraphs 5, AusCF5 and Aus10.4. An entity shall apply those amendments when it applies AASB 18.
AASB Interpretation 1003 Australian Petroleum Resource Rent Tax (November 2007)
Below the heading ‘References’, the reference to AASB 108 is amended. Paragraph 2 is also amended. New text is underlined and deleted text is struck through.
Accounting Standard AASB 108 Basis of Preparation of Financial StatementsAccounting Policies, Changes in Accounting Estimates and Errors
Accounting Standard AASB 112 Income Taxes
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2 AASB 112 Income Taxes deals with accounting for income taxes. AASB 112 provides only limited guidance on what is considered to be an income tax, and divergent interpretations as to whether or not Australian PRRT is an income tax have emerged among Australian reporting entities. Unless AASB 112 specifically applies to Australian PRRT, AASB 108 Basis of Preparation of Financial Statements Accounting Policies, Changes in Accounting Estimates and Errors requires that management shall use its judgement in developing and applying an accounting policy that results in information that is relevant to the economic decision-making needs of users and is reliable.
A footnote is added to ‘AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors;’ in paragraph 14. New text is underlined.
1 When it issued AASB 18 Presentation and Disclosure in Financial Statements in June 2024, the AASB changed the title of AASB 108 to Basis of Preparation of Financial Statements.
AASB Interpretation 1031 Accounting for the Goods and Services Tax (GST) (November 2004)
Paragraph 23 is amended. Below the heading ‘References’, the reference to AASB 108 is also amended. New text is underlined and deleted text is struck through.
Discussion
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23 In some cases, an entity carries on a business that comprises a mix of input-taxed activities and taxable activities and GST-free activities. In these circumstances, the entity is not entitled to claim an input tax credit in respect of its input-taxed activities. In these cases, the legislation provides that the related GST is apportioned between input-taxed and other activities in measuring the recognised amount of the acquisition cost. In some cases, periodic adjustments will need to be made in respect of the apportionment. Where the related item is a depreciable asset, consequential adjustments will need to be made to reflect revisions of the acquisition cost and carrying amount of the asset. These adjustments are in the nature of revisions of the depreciable amount and would be accounted for in accordance with the requirements of AASB 108 Basis of Preparation of Financial StatementsAccounting Policies, Changes in Accounting Estimates and Errors.
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Accounting Standard AASB 108 Basis of Preparation of Financial StatementsAccounting Policies, Changes in Accounting Estimates and Errors
Accounting Standard AASB 112 Income Taxes
AASB Interpretation 1055 Accounting for Road Earthworks (September 2004)
Below the heading ‘References’, the reference to AASB 108 is also amended. New text is underlined and deleted text is struck through.
REFERENCES
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Accounting Standard AASB 108 Basis of Preparation of Financial StatementsAccounting Policies, Changes in Accounting Estimates and Errors
Accounting Standard AASB 116 Property, Plant and Equipment
A footnote is added to ‘AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors;’ in paragraph 23. New text is underlined.
1 When it issued AASB 18 Presentation and Disclosure in Financial Statements in June 2024, the AASB changed the title of AASB 108 to Basis of Preparation of Financial Statements.
AASB Practice Statement 2 Making Materiality Judgements (December 2017)
Paragraphs 5, AusCF5, 73, 88A, 88D, 88E and 88G are amended. Example P, Example S, Example T, Diagram 2, Appendix B and Appendix AusCF B are also amended. New text is underlined and deleted text is struck through.
General characteristics of materiality
Definition of material
5 The Conceptual Framework for Financial Reporting (Conceptual Framework) provides the following definition of material information (Appendix A and paragraph B1 of AASB 18 Presentation and Disclosure in Financial Statements provide paragraph 7 of AASB 101 Presentation of Financial Statements provides a similar definition1):
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1 See Appendix A and paragraph B2 of Appendix B of AASB 18 Presentation and Disclosure in Financial Statementsparagraph 7 of AASB 101 Presentation of Financial Statements.
AusCF5 Notwithstanding paragraph 5, in respect of AusCF entities, the Framework for the Preparation and Presentation of Financial Statements as identified in AASB 1048 Interpretation of Standards (the Framework) provides the following definition of material information (Appendix A and paragraph B1 of AASB 18 Presentation and Disclosure in Financial Statements provide paragraph 7 of AASB 101 Presentation of Financial Statements provides a similar definition1):
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1 See Appendix A and paragraph B2 of Appendix B of AASB 18 Presentation and Disclosure in Financial Statementsparagraph 7 of AASB 101 Presentation of Financial Statements.
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Specific topics
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Errors
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73 An entity must correct all material errors, as well as any immaterial errors made intentionally to achieve a particular presentation of its financial position, financial performance or cash flows, to ensure compliance with Australian Accounting Standards.40 The entity should refer to AASB 108 Basis of Preparation of Financial Statements Accounting Policies, Changes in Accounting Estimates and Errors for guidance on how to correct an error.
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Information about covenants
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Example P—assessing whether information about covenants is material
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Application...
Paragraph B106 of AASB 18 76ZA of AASB 101 requires an entity to disclose, in specified circumstances, information in the notes that enables users of financial statements to understand the risk that non-current liabilities with covenants could become repayable within twelve months after the reporting period.