Amendments to AASB 1 First-time AdoptionAmendments to AASB 1 First-time Adoption of Australian Accounting Standards

Amendments to AASB 1 First-time Adoption of Australian Accounting Standards

Effective date

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39AH AASB 2021-5 Amendments to Australian Accounting Standards – Deferred Tax related to Assets and Liabilities arising from a Single Transaction, issued in June 2021, amended paragraph B1 and added paragraph B14. An entity shall apply these amendments for annual reporting periods beginning on or after 1 January 2023. Earlier application is permitted. If an entity applies the amendments for an earlier period, it shall disclose that fact.
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Appendix B
Exceptions to the retrospective application of other Australian Accounting Standards

This appendix is an integral part of the Standard.

B1 An entity shall apply the following exceptions:
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(g) government loans (paragraphs B10–B12); and
(h) insurance contracts (paragraph B13); and.
(i) deferred tax related to leases and decommissioning, restoration and similar liabilities (paragraph B14).
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Deferred tax related to leases and decommissioning, restoration and similar liabilities

B14 Paragraphs 15 and 24 of AASB 112 Income Taxes exempt an entity from recognising a deferred tax asset or liability in particular circumstances. Despite this exemption, at the date of transition to Australian Accounting Standards, a first-time adopter shall recognise a deferred tax asset – to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised – and a deferred tax liability for all deductible and taxable temporary differences associated with:
(a) right-of-use assets and lease liabilities; and
(b) decommissioning, restoration and similar liabilities and the corresponding amounts recognised as part of the cost of the related asset.