standards on issue not for profit 23 october 2015

7/25/2019 Standards on Issue Not for Profit 23 October 2015

1/13

Updated as at 23 October 2015

This document outlines all standards issued by the AASB and the IASB which will be applicable for thefirst time or available for early adoption by not-for-profit entitiesfor any financial year ending on orafter 30 June 2015. It will assist preparers of financial reports to:

ensure all AASBs and Interpretations that are mandatory have been applied in the correct period

identify and consider AASBs and Interpretations not yet mandatory which may be relevant for earlyadoption.

Standards highlighted in green relate to not-for-profit public sector entities only .

AASB 108Accounting Policies, Changes in Accounting Estimates and Errorsrequires specificdisclosures when adopting a new or revised AASB or Interpretation results in a change in existing policyor new policy that is significant. AASB 108 also requires disclosure of the possible impact of relevant

AASBs and Interpretations on issue but not yet adopted. Table 2 serves as a checklist to assist in thepreparation of such disclosures.

The AASBs policy of transaction neutrality means that Australian Accounting Standards relevant to not-for-profit entities are based on standards issued by the International Accounting Standards Board(IASB), amended by way of Australian paragraphs where necessary.

AASBs and interpretat ions currentl y on issue

Table 1:contains all standards and interpretations that must be applied for the first time for years ended

30 J 2015 Th t d d d i t t ti i T bl 2 b l il bl f l d ti f

Not-for-profit Standards on Issue


2/13


Table 1 AASBs and interpretations mandator ily appl icable for the first t ime at 30 June 2015

AASBs and Interpretations KPMG publication Key requirements Transitional Provisions

The items below are mandatory for years beginning on or after 1 January 2014

AASB 10 Consolidated Financial Statements IFRS Businesscombinations

AASB 10 introduces a new approach todetermining which investees should beconsolidated. An investor controls an investeewhen the investor is exposed, or has rights, tovariable returns from its involvement with theinvestee and has the ability to affect those returnsthrough its power over the investee.

Retrospective application wherethere is a change in the controlconclusion between AASB 127/Interpretation 112 and AASB 10.There are specific requirementswhen retrospective application isimpracticable.

Early application is only available fornot-for-profit entities to annualreporting periods beginning on orafter 1 January 2013 but before1 January 2014, and if AASB 11,

AASB 12, AASB 127 (2011) andAASB 128 (2011) are applied at thesame time.

AASB 127 Separate Financial Statements(2011)

AASB 127 (2011) carries forward the existingaccounting and disclosure requirements forseparate financial statements with some minorclarifications.

Retrospective application.General provisions of AASB 108apply.Early application is only available fornot-for-profit entities to annualreporting periods beginning on orafter 1 January 2013 but before1 January 2014, and if AASB 10,

AASB 11, AASB 12 & AASB 128(2011) are applied at the same time.

AASB 2013-8 Amendments to AustralianAccounting Standards AustralianImplementation Guidance for Not-for-ProfitEntities Control and Structured Entities

Reporting Update13RU-015

Adds guidance to AASB 10 regarding the criteriafor determining whether one entity controlsanother entity from the perspective of not-for-profit entities.

Retrospective application wherethere is a change in the controlconclusion between AASB127/Interpretation 112 and AASB 10.

2015 KPMG, an Australian partnership and a member firm of the KPMG network of i ndependent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

2
https://home.kpmg.com/xx/en/home/services/audit/international-financial-reporting-standards/business-combinations.htmlhttps://home.kpmg.com/xx/en/home/services/audit/international-financial-reporting-standards/business-combinations.htmlhttps://home.kpmg.com/xx/en/home/services/audit/international-financial-reporting-standards/business-combinations.htmlhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/13ru-015.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/13ru-015.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/13ru-015.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/13ru-015.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/13ru-015.aspxhttps://home.kpmg.com/xx/en/home/services/audit/international-financial-reporting-standards/business-combinations.htmlhttps://home.kpmg.com/xx/en/home/services/audit/international-financial-reporting-standards/business-combinations.html


3/13



AASB 2013-5 Amendments to AustralianAccounting Standards Investment Entities

N/A Amendments to provide investment entities withcertain exemptions from consolidationrequirements of AASB 10. The exemptionsrequire investment entities to account for

controlled investees at fair value through profit orloss, rather than consolidate these investees.

Retrospective application.General provisions of AASB 108apply.

AASB 11 Joint Arrangements IFRS Businesscombinations

AASB 11 revises accounting requirements forjoint ventures (now referred to as jointarrangements).The classification of joint arrangements dependson whether parties have rights to and obligationsfor underlying assets and liabilities rather than thestructure of the arrangement. If the parties haverights to the underlying assets and liabilities, it isconsidered a joint operation and partialconsolidation is applied. If the parties only have

rights to the net assets, it is considered a jointventure and the parties are required to equityaccount for the joint venture. Proportionateconsolidation is not permitted.

Retrospective application withspecific restatement requirementsfor certain transition (i.e. movingfrom proportionate consolidation toequity accounting) to simplify theprocess.Early application is only available fornot-for-profit entities to annualreporting periods beginning on orafter 1 January 2013 but before

1 January 2014, and if AASB 10,AASB 12, AASB 127 (2011) & AASB128 (2011) are applied at the sametime.

AASB 128 Investments in Associates andJoint Ventures(2011)

Limited amendments have been made to AASB128 including the application of AASB 5 Non-current assets held for sale and discontinuedoperations to interests in associates and jointventures and how to account for changes ininterests in joint ventures and associates.

Retrospective applicationGeneral provisions of AASB 108apply.Early application is only available fornot-for-profit entities to annualreporting periods beginning on orafter 1 January 2013 but before1 January 2014, and if AASB 10,AASB 11, AASB 12 and AASB 127

(2011) are applied at the same time.



3
https://home.kpmg.com/xx/en/home/services/audit/international-financial-reporting-standards/business-combinations.htmlhttps://home.kpmg.com/xx/en/home/services/audit/international-financial-reporting-standards/business-combinations.htmlhttps://home.kpmg.com/xx/en/home/services/audit/international-financial-reporting-standards/business-combinations.htmlhttps://home.kpmg.com/xx/en/home/services/audit/international-financial-reporting-standards/business-combinations.htmlhttps://home.kpmg.com/xx/en/home/services/audit/international-financial-reporting-standards/business-combinations.html


4/13



AASB 12 Disclosures of Interests in OtherEntities

N/A AASB 12 contains the disclosure requirements forentities that have interest in subsidiaries, jointarrangements, associates and/or unconsolidatedstructured entities.

Entities are encouraged to provideinformation required by AASB 12before the effective date, but thiswould not compel the entity toformally early adopt AASB 12 oreither AASB 10 or AASB 11.

Early application is only available fornot-for-profit entities to annualreporting periods beginning on orafter 1 January 2013 but before1 January 2014, and if AASB 10 &AASB 11 are applied at the sametime.

AASB 2011-7 Amendments to AustralianAccounting Standards arising from theConsolidation and Joint ArrangementsStandards

N/A This standard gives effect to many consequentialchanges to a number of standards arising fromthe issuance of the new consolidation and jointarrangements standard.

Transitional and early applicationprovisions vary between individualstandards amended.

AASB 2012-10 Amendments to AustralianAccounting Standards Transition Guidanceand other amendments

N/A Amendments to AASB 10, AASB 11 and AASB12 to simplify transition and provide relief from thedisclosures in respect of unconsolidatedstructured entities on transition to the suite ofconsolidation standards.

Additional amendments to AASB 10 and relatedStandards to revise their application paragraphs,so that they apply mandatorily to not-for-profitentities for annual reporting periods beginning onor after 1 January 2014, with early applicationpermitted for not-for-profit entities only from1 January 2013.

To be adopted at the same time asAASB 10, AASB 11 and AASB 12are adopted.

AASB 2013-7 Amendments to AASB 1038arising from AASB 10 in relation toconsolidation and interests of policyholders

N/A Removes the specific requirements regardingconsolidation from AASB 1038, leaving AASB 10as the sole source of consolidation requirementsapplicable to life insurer entities.

Retrospective application.

To be applied with AASB 10.



4


5/13



AASB 2013-9 Amendments to AustralianAccounting Standards ConceptualFramework, Materiality and FinancialInstruments (December 2013) Part B

Materiality

N/A Guidance on materiality removed from AASB1031 and cross references inserted to otherstandards and the Framework for the Preparationand Presentation of Financial Statements where

guidance on materiality is located.

Early adoption is not permitted.

AASB 2013-4 Amendments to AustralianAccounting Standards Novation ofDerivatives and Continuation of HedgeAccounting

In the Headlines2013/13

Makes amendments to AASB 139 to permit thecontinuation of hedge accounting incircumstances where a derivative, which hasbeen designated as a hedging instrument, isnovated from one counterparty to a centralcounterparty as a consequence of laws orregulations.


General provisions of AASB 108apply.

AASB 2013-3 Amendments to AASB 136 Recoverable Amount Disclosures for Non-Financial Assets

N/A Removes requirement to disclose recoverableamount for CGUs with goodwill / indefinite lifeintangibles, and introduces additional disclosuresfor fair value less cost to sell.



Interpretation 21 Levies In the Headlines2013/09

Provides clarity that a liability to pay governmentimposed levies, other than income taxes, isdeferred until thresholds are exceeded.


AASB 2012-3 Amendments to AustralianAccounting Standards Offsetting FinancialAssets and Financial Liabilities

N/A Amendments to AASB 132 clarify when an entityhas a legally enforceable right to set-off financialassets and financial liabilities permitting entities topresent balances net on the balance sheet.



The items below are mandatory for years beginning on or after 1 July 2014

AASB 1055 Budgetary Reporting Reporting Update13RU-006

Extends the requirement to explain variancesfrom budgets presented to Parliament fromGovernments and their General GovernmentSector (GGS) to entities within the GGS such asgovernment departments and statutoryauthorities.

Prospective application.



5
http://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2013-13.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2013-13.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2013-13.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2013-09.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2013-09.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2013-09.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/13ru-006.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/13ru-006.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/13ru-006.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/13ru-006.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/13ru-006.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2013-09.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2013-09.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2013-13.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2013-13.aspx


6/13



AASB 2013-1 Amendments to AASB 1049 Relocation of Budgetary ReportingRequirements

N/A Relocates all budgetary reporting requirementsapplicable to public sector entities to AASB 1055without substantive amendment.


If adopted early must adopt AASB1055 at the same time.

AASB 2014-1 Amendments to AustralianAccounting Standards Part A: AnnualImprovements 2010-2012 and 2011-2013Cycles

The Balancing Items Issue 6

Amendments to existing accounting standards,particularly in relation to:

clarifying share-based payment vesting andnon-vesting conditions,

operating segment asset disclosures,

clarification of KMP when an entity has amanagement entity / responsible entity (suchas a trustee),

the meaning of effective IFRSs,

exemptions for joint ventures from businesscombination requirements,

clarification of the scope exception formeasuring the fair value of financial assetsand liabilities on a portfolio basis, and

clarification of the interrelationship betweenbusiness combinations and investmentproperty when classifying property asinvestment property or owner-occupied.

Generally prospective application,with transitional provisions for AASB2, AASB 116 and AASB 138 andAASB 140.

Early adoption of amendments toindividual standards permitted,subject to certain conditions.

Amendments to AASB 9 apply onlywhen that Standard is applied oroperative.

2014-1 Amendments to AustralianAccounting Standards Part B: DefinedBenefit Plans: Employee Contributions(Amendments to AASB 19 EmployeeBenefits)

N/A Employee or third party contributions that metcertain criteria are able (but not required) to berecognised as a reduction of the service cost inthe period in which the related service isrendered.




6
https://home.kpmg.com/xx/en/home/insights/2015/04/ifrs-newsletters.htmlhttps://home.kpmg.com/xx/en/home/insights/2015/04/ifrs-newsletters.htmlhttps://home.kpmg.com/xx/en/home/insights/2015/04/ifrs-newsletters.htmlhttps://home.kpmg.com/xx/en/home/insights/2015/04/ifrs-newsletters.htmlhttps://home.kpmg.com/xx/en/home/insights/2015/04/ifrs-newsletters.html


7/13



AASB 2014-1 Amendments to AustralianAccounting Standards Part C: Materiality

N/A Further to AASB 2013-9 Part B (see above),amendments are made to particular AustralianAccounting Standards to delete their referencesto AASB 1031. This is part of the AASBs

program to delete references to AASB 1031 in allAustralian Accounting Standards prior to finalwithdrawal of AASB 1031.

Earlier application is permitted forannual reporting periods beginningon or after 1 January 2014 butbefore 1 July 2014.

AASB 2014-2 Amendments to AASB 1053 Transition to and between Tiers, and relatedTier 2 Disclosure Requirements

N/A Amendments to AASB 1053Application of Tiersof Australian Accounting Standardsto:

clarify that AASB 1053 relates only to generalpurpose financial statements;

clarify various options for transition to andbetween tiers, and

specify certain disclosure requirements whenan entity resumes the application of Tier 2reporting requirements.

Generally prospective with earlierapplication permitted for annualreporting periods beginning on orafter 1 July 2009 but before 1 July2014.



7


8/13


Table 2 AASBs and interpretations available for early adoption for 30 June 2015 year ends



AASB 2015-3 Amendments to AustralianAccounting Standards arising from theWithdrawal of AASB 1031 Materiality

N/A Completion of AASB project to remove Australianguidance on materiality from Australian AccountingStandards with the issue of the f inal amendingstandard to effect the withdrawal of AASB 1031Materiality. Guidance on materiality located inAASB 101 Presentation of Financial Statementsgoing forward.


AASB 2015-4 Amendments to AustralianAccounting Standards Financial ReportingRequirements for Australian Groups with aForeign Parent

N/A Aligns the relief available in AASB 10 ConsolidatedFinancial Statementsand AASB 128 Investmentsin Associates and Joint Venturesin respect of thefinancial reporting requirements for Australiangroups with a foreign parent


The items below are mandatory for years beginning on or after 1 January 2016AASB 14 Regulatory Deferral Accounts

AASB 2014-1 Amendments to AustralianAccounting Standards Part D:Consequential Amendments arising fromAASB 14 Regulatory Deferral Accounts


Interim guidance permitting first-time adopters ofIFRS to continue using previous GAAP to accountfor regulatory deferral account balances while theIASB completes its comprehensive project in thisarea.


AASB 2014-3 Amendments to AustralianAccounting Standards Accounting forAcquisitions of Interests in Joint Operations


Business combination accounting required to beapplied to acquisitions of interests in a jointoperation that meets the definition of a businessunder AASB 3 Business Combinations.

Prospective application

AASB 2014-4 Amendments to Australian

Accounting Standards Clarification ofAcceptable Methods of Depreciation andAmortisation

In the Headlines

2014/08

Introduces a rebuttable presumption that the use of

revenue-based amortisation methods for intangibleassets is inappropriate. Limited opportunity forpresumption to be overcome.

Clarifies that revenue-based depreciation forproperty, plant and equipment cannot be used.

Prospective application



8
http://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-01.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-01.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-01.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-07.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-07.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-07.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-08.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-08.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-08.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-08.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-08.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-07.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-07.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-01.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-01.aspx


9/13



AASB 2014-6 Amendments to AustralianAccounting Standards Agriculture: BearerPlants


Bearer plants are now in the scope of AASB 116Property, Plant and Equipment for measurementand disclosure purposes. Therefore, a companycan elect to measure bearer plants at cost.

However, the produce growing on bearer plants willcontinue to be measured at fair value less costs tosell under AASB 141Agriculture.

On transition, a company can electto use the fair value of bearer plantsas at the beginning of the earliestcomparative reporting period as

deemed cost at that date.

AASB 2014-9 Amendments to AustralianAccounting Standards Equity method inSeparate Financial Statements


Allows the use of the equity method in separatefinancial statements in the accounting forassociates, joint ventures and subsidiaries.


AASB 2014-10 Amendments to AustralianAccounting Standards Sale or Contributionof Assets between an Investor and itsAssociate or Joint Venture 1


The amendments require the full gain or loss to berecognised when the assets transferred meet thedefinition of a business under AASB 3 BusinessCombinations (whether housed in a subsidiary ornot).


AASB 2015-1 Amendments to AustralianAccounting Standards AnnualImprovements to Australian AccountingStandards 2012-2014 Cycle

The BalancingItems Issue 7

Amendments to existing accounting standards,particularly in relation to:

IFRS 5 guidance on changes in method ofdisposal,

IFRS 7 clarifies continuing involvement forservicing contracts,

IFRS 7 clarifies offsetting disclosures are notspecifically required in interim financialstatements, but may be included under thegeneral requirements of IAS 34,

IAS 19 clarifies that discount rates usedshould be in the same currency as the benefitsare to be paid, and

Generally retrospective applicationfor IFRS 7, IAS 19 and IAS 34.General provisions of AASB 108apply, with some transitionalprovisions.

Prospective application for IFRS 5.

Early adoption of amendments toindividual standards permitted.

1The IASB has proposed postponing the effective date of this amendment indefinitely pending the outcome of its research project on the equity method of accounting. Deferringthe effective date indefinitely in the Australian jurisdiction may have unintended legal consequences given AASBs are legislative instruments. Accordingly, if the IASBs proposalsbecome a standard, it is expected that the AASB will defer the effective date of the amendments to 1 January 2018.



9
http://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-12.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-12.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-12.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-14.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-14.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-14.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-17.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-17.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-17.aspxhttps://home.kpmg.com/xx/en/home/insights/2015/04/ifrs-newsletters.htmlhttps://home.kpmg.com/xx/en/home/insights/2015/04/ifrs-newsletters.htmlhttps://home.kpmg.com/xx/en/home/insights/2015/04/ifrs-newsletters.htmlhttps://home.kpmg.com/xx/en/home/insights/2015/04/ifrs-newsletters.htmlhttps://home.kpmg.com/xx/en/home/insights/2015/04/ifrs-newsletters.htmlhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-17.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-17.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-14.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-14.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-12.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-12.aspx


10/13



IAS 34 clarifies that disclosures may beincorporated in the interim financial statementsby cross-reference to another part of theinterim financial report.

AASB 2015-2 Amendments to AustralianAccounting Standards Disclosure Initiative:Amendments to AASB 101

Making financialstatements morerelevant

The amendments do not require any significantchange to current practice, but should facilitateimproved reporting, including an emphasis on onlyincluding material disclosures, clarity on theaggregation and disaggregation of line items, thepresentation of subtotals, the ordering of notes andthe identification of significant accounting policies.


AASB 2015-5 Amendments to AustralianAccounting Standards Investment Entities:Applying the Consolidation Exception

Investment entityamendments dealwith applicationissues

Under the amendments:

an investment entity parent is required to fairvalue a subsidiary providing investment-relatedservices that is itself an investment entity;

an intermediate parent owned by an investmententity group is exempt from preparingconsolidated financial statements; and

when a non-investment entity investor appliesthe equity method, it is permitted to retain thefair value accounting applied by its investmententity associate or joint venture.


AASB 1057Application of AustralianAccounting Standards


The AASB has reissued most of its Standards (andInterpretations) that incorporate IFRSs to makeeditorial changes. The editorial changes will enablethe AASB to issue Australian versions of IFRSsmore efficiently. As part of the reissuance, the

AASB has moved the application paragraphs thatidentify the reporting entities and general purposefinancial statements to which the pronouncementsapply to a new Standard, AASB 1057Application ofAustralian Accounting Standards. However, thetechnical application requirements have not beenamended.




10
https://home.kpmg.com/xx/en/home/insights/2015/04/breaking-news-2015-133.htmlhttps://home.kpmg.com/xx/en/home/insights/2015/04/breaking-news-2015-133.htmlhttps://home.kpmg.com/xx/en/home/insights/2015/04/breaking-news-2015-133.htmlhttps://home.kpmg.com/xx/en/home/insights/2015/04/breaking-news-2015-133.htmlhttps://home.kpmg.com/xx/en/home/insights/2015/04/breaking-news-2014-129.htmlhttps://home.kpmg.com/xx/en/home/insights/2015/04/breaking-news-2014-129.htmlhttps://home.kpmg.com/xx/en/home/insights/2015/04/breaking-news-2014-129.htmlhttps://home.kpmg.com/xx/en/home/insights/2015/04/breaking-news-2014-129.htmlhttps://home.kpmg.com/xx/en/home/insights/2015/04/breaking-news-2014-129.htmlhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/15ru-014.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/15ru-014.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/15ru-014.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/15ru-014.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/15ru-014.aspxhttps://home.kpmg.com/xx/en/home/insights/2015/04/breaking-news-2014-129.htmlhttps://home.kpmg.com/xx/en/home/insights/2015/04/breaking-news-2014-129.htmlhttps://home.kpmg.com/xx/en/home/insights/2015/04/breaking-news-2014-129.htmlhttps://home.kpmg.com/xx/en/home/insights/2015/04/breaking-news-2014-129.htmlhttps://home.kpmg.com/xx/en/home/insights/2015/04/breaking-news-2015-133.htmlhttps://home.kpmg.com/xx/en/home/insights/2015/04/breaking-news-2015-133.htmlhttps://home.kpmg.com/xx/en/home/insights/2015/04/breaking-news-2015-133.html


11/13




AASB 1056 Superannuation Entities Reporting Update15RU-008

A new Australian specific Standard forsuperannuation entities that will replace AAS 25

Financial Reporting by Superannuation Plansforannual reporting periods beginning on or after1 July 2016, with early adoption permitted.

The standard applies to the large superannuationentities regulated by Australian PrudentialRegulation Authority (APRA) and to public sectorsuperannuation entities. It does not apply to self-managed superannuation funds or small APRAfunds.

Prospective application, except thaton initial application superannuation

entities need not present astatement of financial position as atthe beginning of the earliestcomparative period.

AASB 2015-6 Amendments to AustralianAccounting Standards Extending RelatedParty Disclosures to Not-for-Profit Public

Sector Entities


Extends the scope of AASB 124 Related PartyDisclosuresto include not-for-profit public sectorentities.

Prospective application.Comparative disclosures notrequired in first year of application.

AASB 2015-7Amendments to AustralianAccounting Standards Fair Value Disclosures ofNot-for-Profit Public Sector Entities


Provides relief to not-for-profit public sector entitiesfrom certain disclosures about the fair valuemeasurement of property, plant and equipmentheld for their current service potential rather than togenerate net cash inflows that is categorised withinLevel 3 of the fair value hierarchy.




11
http://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/15ru-008.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/15ru-008.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/15ru-008.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/15ru-003.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/15ru-003.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/15ru-003.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/15ru-011.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/15ru-011.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/15ru-011.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/15ru-011.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/15ru-011.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/15ru-003.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/15ru-003.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/15ru-008.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Flash-Reports/Pages/15ru-008.aspx


12/13



The items below are mandatory for years beginning on or after 1 January 2018

AASB 9 Financial Instruments (December2014)

AASB 2014-7 Amendments to AustralianAccounting Standards arising from AASB 9(December 2014)

AASB 2014-8 Amendments to AustralianAccounting Standards arising from AASB 9(December 2014) Application of AASB 9(December 2009) and AASB 9 (December2010)


IFRS - FinancialInstruments

The AASB has issued the complete AASB 9. Thenew standard includes revised guidance on the

classification and measurement of financial assets,including a new expected credit loss model forcalculating impairment, and supplements the newgeneral hedge accounting requirements previouslypublished. It supersedes AASB 9 (issued inDecember 2009 as amended) and AASB 9(issued in December 2010).

The application of the existing versions of AASB 9(AASB 9 (December 2009) and AASB 9(December 2010 including the hedgingamendments made in December 2013)) from 1February 2015 is limited to entities that havealready early adopted them.

Retrospective application with someexemptions. Early adoption is

permitted for financial yearsbeginning on or after 24 July 2014.

The restatement of prior periods isnot required, and is permitted only ifinformation is available without theuse of hindsight.

AASB 15 Revenue from Contracts withCustomersAASB 2014-5 Amendments to AustralianAccounting Standards arising from AASB 15AASB 2015-8 Amendments to AustralianAccounting Standards Effective Date ofAASB 15

AASB 15 will apply to contracts of NFPentities that are exchange transactions.AASB 1004 Contributionswill continue to

apply to non-exchange transactions until theIncome of NFP entities project is completed.


IFRS - Revenue

The standard contains a single model that appliesto contracts with customers and two approaches torecognising revenue: at a point in time or over time.The model features a contract-based five-stepanalysis of transactions to determine whether, howmuch and when revenue is recognised.

Choice of retrospective applicationor as of the application date usingthe cumulative effect approach.Practical expedients are available tothose taking a retrospectiveapproach.



12
http://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-13.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-13.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-13.aspxhttps://home.kpmg.com/xx/en/home/services/audit/international-financial-reporting-standards/financial-instruments.htmlhttps://home.kpmg.com/xx/en/home/services/audit/international-financial-reporting-standards/financial-instruments.htmlhttps://home.kpmg.com/xx/en/home/services/audit/international-financial-reporting-standards/financial-instruments.htmlhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-09.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-09.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-09.aspxhttps://home.kpmg.com/xx/en/home/services/audit/international-financial-reporting-standards/revenue.htmlhttps://home.kpmg.com/xx/en/home/services/audit/international-financial-reporting-standards/revenue.htmlhttps://home.kpmg.com/xx/en/home/services/audit/international-financial-reporting-standards/revenue.htmlhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-09.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-09.aspxhttps://home.kpmg.com/xx/en/home/services/audit/international-financial-reporting-standards/financial-instruments.htmlhttps://home.kpmg.com/xx/en/home/services/audit/international-financial-reporting-standards/financial-instruments.htmlhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-13.aspxhttp://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/IFRS-In-the-Headlines/Pages/in-the-headlines-issue-2014-13.aspx


13/13


Table 3 IASB standards and interpretations awaiting approval by the AASB2

IFRSs and IFRICs Application dateKPMGpublication Key requirements Transitional Provisions

None at 23 October 2015

Contact Us

If you would like to discuss any of these standards or interpretations further, please contact your KPMG advisor.

2These standards and interpretation cannot be (early) adopted until made by the AASB.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as ofthe date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International.

Liability limited by a scheme approved under Professional Standards Legislation.

13

standards on issue not for profit 23 october 2015

Documents