ApplicationApplication

Application

The amendments set out in this Standard apply to entities and financial statements in accordance with the application of AASB 7 and AASB 9 set out in AASB 1057 Application of Australian Accounting Standards.

This Standard applies to annual reporting periods beginning on or after 1 January 2026. Earlier application is permitted.

This Standard uses underlining, striking out and other typographical material to identify some of the amendments to AASB 7 and AASB 9 in order to make the amendments more understandable. However, the amendments made by this Standard do not include that underlining, striking out or other typographical material. Ellipses (…) are used to help provide the context within which amendments are made and also to indicate text that is not amended.

Amendments to AASB 7

Significance of financial instruments for financial position and performance

...

Statement of financial position

...

Investments in equity instruments designated at fair value through other comprehensive income

11A If an entity has designated investments in equity instruments to be measured at fair value through other comprehensive income, as permitted by paragraph 5.7.5 of AASB 9, it shall disclose for each class of investment:
(a) ...
(c) the fair value of each such investment at the end of the reporting period.
(d) ...
(f) the fair value gain or loss presented in other comprehensive income during the period, showing separately the fair value gain or loss related to investments derecognised during the reporting period and the fair value gain or loss related to investments held at the end of the reporting period.
11B If an entity derecognised investments in equity instruments measured at fair value through other comprehensive income during the reporting period, it shall disclose:
(a) ...
(d) any transfers of the cumulative gain or loss within equity during the reporting period related to the investments derecognised during that reporting period.
...

Statement of comprehensive income

Items of income, expense, gains or losses

...
20B An entity shall disclose the information required by paragraph 20C by class of financial assets measured at amortised cost or fair value through other comprehensive income and by class of financial liabilities measured at amortised cost. The entity shall consider how much detail to disclose, the appropriate level of aggregation or disaggregation, and whether users of financial statements need additional explanations to evaluate any quantitative information disclosed.
20C To enable users of financial statements to understand the effect of contractual terms that could change the amount of contractual cash flows based on the occurrence (or non-occurrence) of a contingent event that does not relate directly to changes in basic lending risks and costs (such as the time value of money or credit risk), an entity shall disclose:
(a) a qualitative description of the nature of the contingent event;
(b) quantitative information about the possible changes to contractual cash flows that could result from those contractual terms (for example, the range of possible changes); and
(c) the gross carrying amount of financial assets and the amortised cost of financial liabilities subject to those contractual terms.
20D For example, an entity shall disclose the information required by paragraph 20C for a class of financial liabilities measured at amortised cost whose contractual cash flows change if the entity achieves a reduction in its carbon emissions.
...