Editorial corrections from 1 January 202Editorial corrections from 1 January 2022

Editorial corrections from 1 January 2022

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

13 In paragraph 39AD, the text “deleted paragraph 39AA” is amended to read “deleted paragraphs 39AA and E3–E7”.

14 In Appendix A, footnote (a) to the definition of ‘International Financial Reporting Standards (IFRSs)’ is amended as follows:

(a) Definition of IFRSs amended after the name changes introduced by the revised Constitution of the IFRS Foundation in 2010. Interpretations are identified in AASB 1048 Interpretation of Standards.

15 Paragraph D1(o) is deleted and a note “[deleted]” added.

16 The text “A similar election is available to an associate … or joint control over it.” is not part of paragraph D16(b). It is a continuation of the main text of paragraph D16 and is moved to align with that text.

17 Paragraph E8 is amended as follows:

E8 A first-time adopter … in comparative information in its first IFRS Australian-Accounting-Standards financial statements. An entity that makes that election … at the beginning of its first IFRS Australian-Accounting-Standards reporting period.

Amendments to AASB 2 Share-based Payment

18 In paragraph IG17 of the Implementation Guidance accompanying AASB 2, the title of AASB 108 in the final paragraph of IG Example 11 is amended to read “Accounting Policies, Changes in Accounting Estimates and Errors”.

19 In paragraph IG19B, the text “paragraphs B44A of AASB 2” is amended to read “paragraph B44A of AASB 2”.

Amendments to AASB 5 Non-current Assets Held for Sale and Discontinued Operations

20 In Appendix A, the definition of ‘recoverable amount’ is amended as follows:

The higher of an asset’s fair value less costs to sell costs of disposal and its value in use.

Amendments to AASB 7 Financial Instruments: Disclosures

21 Paragraphs 44DE and 44DF are renumbered as 44EE and 44FF respectively. In addition, the cross-reference in paragraph 44DE to paragraph 44DF is amended to refer to paragraph 44FF.

Amendments to AASB 9 Financial Instruments

22 The paragraph 7.1.9 that starts with the text “AASB 2020-8” is renumbered as paragraph 7.1.10.

Amendments to AASB 14 Regulatory Deferral Accounts

23 Paragraph 31 is added as follows:

31 The disclosures required by paragraph 30 shall be given in the financial statements either directly in the notes or incorporated by cross-reference from the financial statements to some other statement, such as a management commentary or risk report, that is available to users of the financial statements on the same terms as the financial statements and at the same time. If the information is not included in the financial statements directly or incorporated by cross-reference, the financial statements are incomplete.

Amendments to AASB 15 Revenue from Contracts with Customers

24 In paragraph AusE1, the text “Paragraphs 110–129 and B87B89” is amended to read “Paragraphs 110–129 and B87–B89”.

Amendments to AASB 16 Leases

25 Paragraph 3 is amended as follows:

3 An entity shall apply this Standard to all leases, including leases of right-of-use assets in a sublease, except for:

(a) …

(c) service concession arrangements within the scope of Interpretation 12 Service Concession Arrangements as identified in AASB 1048 Interpretation of Standards;

…

26 The paragraph Aus3.1 that starts with the text “Notwithstanding paragraph 3” is renumbered as paragraph Aus3.2.

27 The heading “Lease term (paragraphs B34–B41)” before paragraph 18 is amended so that it is not indented.

28 Appendix D Amendments to other Standards is deleted.

Amendments to AASB 101 Presentation of Financial Statements

29 In paragraph 7, footnote 1 to the definition of ‘International Financial Reporting Standards (IFRSs)’ is amended as follows:

1 Definition of IFRSs amended after the name changes introduced by the revised Constitution of the IFRS Foundation in 2010. Interpretations are identified in AASB 1048 Interpretation of Standards.

Amendments to AASB 102 Inventories

30 In paragraph Aus36.1(e), the text “recognised as expense in the period” is amended to read “recognised as an expense in the period”.

Amendments to AASB 116 Property, Plant and Equipment

31 In paragraph 6, the definition of ‘recoverable amount’ is amended as follows:

Recoverable amount is the higher of an asset’s fair value less costs to sell costs of disposal and its value in use.

Amendments to AASB 119 Employee Benefits

32 Paragraph 3 is amended as follows:

3 This Standard does not deal with reporting by employee benefit plans (see AAS 25 Financial Reporting by Superannuation Plans or AASB 1056 Superannuation Entities, as appropriate).

Amendments to AASB 127 Separate Financial Reporting

33 In the second sentence of paragraph 18, the text “periods beginning after 1 January 2014” is amended to read “periods beginning on or after 1 January 2014”.

Amendments to AASB 128 Investments in Associates and Joint Ventures

34 Paragraph 42 is amended as follows:

42 Because goodwill … by comparing its recoverable amount (higher of value in use and fair value less costs to sell costs of disposal) with its carrying amount …

Amendments to AASB 132 Financial Instruments: Presentation

35 In paragraph AG38A, the text “right of set off” (twice occurring) is amended to read “right of set-off”.

Amendments to AASB 134 Interim Financial Reporting

36 The paragraph 58 that starts with the text “AASB 2018-7” is renumbered as paragraph 59.

Amendments to AASB 137 Provisions, Contingent Liabilities and Contingent Assets

37 Paragraph AusA1 is amended as follows:

AusA1 The following do not apply to entities preparing general purpose financial statements that apply AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities:

(a) …

(b) in paragraph 75 the text “If an entity starts to implement a restructuring plan … of the financial statements about a specific reporting entity.”

Amendments to AASB 140 Investment Property

38 In paragraph 7, the title of AASB 16, “Leases”, is added after the reference to AASB 16.

Amendments to AASB 1023 General Insurance Contracts

39 Paragraph 1.1 is deleted and a note “[Deleted by the AASB]” added. (The application of the Standard to entities and financial statements is set out in AASB 1057 Application of Australian Accounting Standards.)

40 In paragraph 19.1, the definition of ‘separate financial statements’ is amended as follows:

separate financial statements are those presented by a parent, an investor in an associate or a venturer in a jointly controlled entity joint venture, in which the investments are accounted for on the basis of the direct equity interest rather than on the basis of the reported results and net assets of the investees.

Amendments to AASB 1038 Life Insurance Contracts

41 Paragraph 1.1 is deleted and the note “[Deleted by the AASB]” added. (The application of the Standard to entities and financial statements is set out in AASB 1057 Application of Australian Accounting Standards.)

42 In paragraph 10.2.1(b), the text “other comprehensive income, or” is amended to read “other comprehensive income; or”.

43 In paragraph 20.1, the definition of ‘separate financial statements’ is amended as follows:

separate financial statements are those presented by a parent, an investor in an associate or a venturer in a jointly controlled entity joint venture, in which the investments are accounted for on the basis of the direct equity interest rather than on the basis of the reported results and net assets of the investees.

Amendments to AASB 1039 Concise Financial Reports

44 In paragraph 32, the text “first adopts Australian equivalents to IFRSs” is amended to read “first adopts Australian Accounting Standards”.

Amendments to AASB 1052 Disaggregated Disclosures

45 Paragraph 20 is amended as follows:

20 Judgement is required to identify those activities of a government department that warrant separate disclosure in the complete set of financial statements. Exercising this judgement involves a consideration of the following:

(a) …

(d) the concept of materiality. AASB 101 Presentation of Financial Statements and AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors define an item as material if its omission or misstatement could influence the economic decisions of users of the financial statements defines information as material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.

Amendments to AASB 1057 Application of Australian Accounting Standards

46 Paragraph 21 regarding the application of AAS 25 Financial Reporting by Superannuation Plans is deleted and a note “[Deleted]” added.

Amendments to AASB 1058 Income of Not-for-Profit Entities

47 Appendix D Amendments to other Standards is deleted.

48 In Examples 6–8 of the Illustrative Examples accompanying AASB 1058, the sentence “Each example is considered in isolation.” is deleted from the following:

(a) the third paragraph in both Example 6 and Example 7; and

(b) the second paragraph in Example 8.

49 In Examples 7C and 7D of the Illustrative Examples, all references to “Charity B” are amended to read “Charity C”.

Amendments to AASB 1059 Service Concession Arrangements: Grantors

50 Appendix D Amendments to other Standards is deleted.

Amendments to AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities

51 Appendix C Amendments to other Standards is deleted.

Amendments to various Interpretations

52 AASB 1060 added appendices titled Australian simplified disclosures for Tier 2 entities to various Interpretations to identify their disclosure requirements that do not apply to entities preparing general purpose financial statements (Tier 2) in accordance with AASB 1060. The preamble in each of the following appendices stated “This appendix is an integral part of the Standard” and is amended to read “This appendix is an integral part of the Interpretation”:

(a) Appendix B of Interpretation 2 Members’ Shares in Co-operative Entities and Similar Instruments;

(b) Appendix A of Interpretation 5 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds;

(c) Appendix A of Interpretation 17 Distributions of Non-cash Assets to Owners;

(d) Appendix C of Interpretation 23 Uncertainty over Income Tax Treatments; and

(e) Appendix A of Interpretation 129 Service Concession Arrangements: Disclosures.

Amendments to Interpretation 16 Hedges of a Net Investment in a Foreign Operation

53 In the diagram in paragraph AG2, the functional currency of Subsidiary B of ‘USD’ (US dollars) is amended to ‘GBP’ (i.e. pounds sterling).

Amendments to Interpretation 132 Intangible Assets – Web Site Costs

54 Paragraph AusCF1 is amended as follows:

AusCF1 AusCF paragraphs and footnotes included in this Standard Interpretation apply only to:

(a) …

55 The third paragraph under the ‘Effective date’ heading is numbered as paragraph Aus10.4.

Amendments to Interpretation 1052 Tax Consolidation Accounting

56 In paragraph 45, the reference to AASB 139 Financial Instruments: Recognition and Measurement is replaced by a reference to AASB 9 Financial Instruments.

57 In Appendix A, the preamble “This appendix is an integral part of the Standard” is amended to read “This appendix is an integral part of the Interpretation”.

58 Below the heading “References”, the reference to AASB 139 Financial Instruments: Recognition and Measurement is deleted.

Amendments to the Conceptual Framework for Financial Reporting

59 In the Appendix of defined terms accompanying the Conceptual Framework, the definition of ‘material information’ is amended as follows:

Information whose omission or misstatement could is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial reports make on the basis of those reports, which provide financial information about a specific reporting entity.

Amendments to AASB Practice Statement 2 Making Materiality Judgements

60 In footnote 8 to paragraph 8, and also in paragraph 73, the title of AASB 108, “Accounting Policies, Changes in Accounting Estimates and Errors”, is added after the reference to AASB 108.

61 In footnote 35 to paragraph 67, the text “Australian Accounting Standards – Reduced Disclosure Requirements” is amended to read “Australian Accounting Standards – Simplified Disclosures”.