ACT ACCOUNTING POLICY
Treatment of
AASB Standards issued
which are not yet effective
as at 30 June 2015
For reporting periods ending on
30 June 2015
ACT Accounting Policy —AASB Standards issued which are not yet effective
as at 30 June 2015
TABLE OF CONTENTS
1 INTRODUCTION ..................................................................................................................................................................... 1
1.1
APPLICATION ................................................................................................................................................................ 1
2 TREATMENT OF AASB STANDARDS ISSUED WHICH ARE NOT YET EFFECTIVE .................................................................... 1
2.1
DISCLOSURES REQUIRED FOR STANDARDS ISSUED BUT NOT YET EFFECTIVE ............................................................................... 1
3 SUMMARIES OF CHANGES TO STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE ............................ 2
3.1
AASB 9 FINANCIAL INSTRUMENTS (APPL. 1 JAN 2018) ....................................................................................................... 3
3.2
AASB 14 REGULATORY DEFERRAL ACCOUNTS (APPL. 1 JAN 2016) ....................................................................................... 5
3.3
AASB 15 REVENUE FROM CONTRACTS WITH CUSTOMERS (APPL. 1 JAN 2017) ........................................................................ 6
3.4
AASB 1056 SUPERANNUATION ENTITIES (APPL. 1 JUL 2016) .............................................................................................. 7
3.5
AASB 2010-7 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS ARISING FROM AASB 9 (APPL. 1 JAN 2018) .................. 7
3.6
AASB 2013-9 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS – CONCEPTUAL FRAMEWORK, MATERIALITY AND FINANCIAL
INSTRUMENTS (PART C FINANCIAL INSTRUMENTS APPL. 1 JAN 2015) .................................................................................. 11
3.7
AASB 2014-1 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS PART D – CONSEQUENTIAL AMENDMENTS ARISING FROM
AASB 14 REGULATORY DEFERRAL ACCOUNTS (APPL. 1 JAN 2016); AND PART E – FINANCIAL INSTRUMENTS (APPL. 1 JAN 2018) . 12
3.8
AASB 2014-3 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS – ACCOUNTING FOR ACQUISITIONS OF INTERESTS IN JOINT
OPERATIONS (APPL. 1 JAN 2016) ................................................................................................................................. 13
3.9
AASB 2014-4 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS – CLARIFICATION OF ACCEPTABLE METHODS OF
DEPRECIATION (APPL. 1 JAN 2016) ............................................................................................................................... 13
3.10
AASB 2014-5 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS ARISING FROM AASB 15 (APPL. 1 JAN 2017) .............. 14
3.11
AASB 2014-6 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS – AGRICULTURE: BEARER PLANTS (APPL. 1 JAN 2016) ... 14
3.12
AASB 2014-7 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS ARISING FROM AASB 9 (DECEMBER 2014) (APPL. 1 JAN
2018) ...................................................................................................................................................................... 15
3.13
AASB 2014-8 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS ARISING FROM AASB 9 (DECEMBER 2014) – APPLICATION
OF AASB 9 (DECEMBER 2009) AND AASB 9 (DECEMBER 2010) (APPL. 1 JAN 2015) ........................................................... 15
3.14
AASB 2014-9 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS – EQUITY METHOD IN SEPARATE FINANCIAL STATEMENTS
(APPL. 1 JAN 2016) ................................................................................................................................................... 16
3.15
AASB 2014-10 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS – SALE OR CONTRIBUTION OF ASSETS BETWEEN AN
INVESTOR AND ITS ASSOCIATE OR JOINT VENTURE (APPL. 1 JAN 2016) ................................................................................ 16
3.16
AASB 2015-1 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS – ANNUAL IMPROVEMENTS TO AUSTRALIAN ACCOUNTING
STANDARDS 2012-2014 CYCLE (APPL. 1 JAN 2016) ....................................................................................................... 16
3.17
AASB 2015-2 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS– DISCLOSURE INITIATIVE: AMENDMENTS TO AASB 101
(APPL. 1 JAN 2016) ................................................................................................................................................... 17
3.18
AASB 2015-3 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS ARISING FROM THE WITHDRAWAL OF AASB 1031
MATERIALITY (APPL. 1 JULY 2015)................................................................................................................................ 18
3.19
AASB 2015-4 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS – FINANCIAL REPORTING REQUIREMENTS FOR AUSTRALIAN
GROUPS WITH A FOREIGN PARENT (APPL. 1 JULY 2015) ................................................................................................... 18
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ACT Accounting Policy —AASB Standards issued which are not yet effective
as at 30 June 2015
3.20
AASB 2015-5 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS – INVESTMENT ENTITIES: APPLYING THE CONSOLIDATION
EXCEPTION (APPL. 1 JAN 2016).................................................................................................................................... 19
3.21
AASB 2015-6 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS – EXTENDING RELATED PARTY DISCLOSURES TO NOT-FORPROFIT PUBLIC SECTOR ENTITIES (APPL. 1 JULY 2016) ...................................................................................................... 19
ATTACHMENT A ........................................................................................................................................................................ 21
ii
ACT Accounting Policy —AASB Standards issued which are not yet effective
as at 30 June 2015
1 Introduction
1.1
Application
This ACT Accounting Policy applies to directorates and territory authorities and covers Australian
Accounting Standards and Interpretations which have been issued as at 30 June 2015 that are not yet
effective. These standards and interpretations will apply during reporting periods later than 2014-15.
2 Treatment of AASB Standards Issued Which are Not Yet Effective
2.1
Disclosures Required for Standards Issued but Not yet Effective
When a directorate or territory authority has not early adopted a new accounting standard, due to the
fact that the standard is effective (i.e. compulsory) in a later reporting period, AASB 108 Accounting
Policies, Changes in Accounting Estimates and Errors requires the directorate or territory authority to
disclose details regarding that standard and its potential financial impact on the financial statements
which may occur when the standard is applied. AASB 108.30 and 31 contain the disclosure
requirements.
This policy paper has been developed to assist agencies in making these disclosures. As such, this paper
provides an indication of what changes have been included in standards which have been issued but are
not yet effective. This will assist agencies in identifying which of the standards may have a potential
material financial impact on them when they are applied.
Agencies are required to:
1. Identify those standards that will apply to their agency upon application, by reading this
policy;
2. Assess whether there may be a material financial impact upon the agency (for all standards
and interpretations that will apply) by reviewing the changes listed in this policy and referring
directly to the standards and/or interpretations;
3. Disclose details of the standards and interpretations which apply but are assessed as not
having a material financial impact, in the format as presented in the 2014-15 Model Financial
Statements (and appendix A); and
4. Disclose details of the standards and interpretations which apply and are assessed as having a
material financial impact, as per AASB 108.30 and 31.
For disclosure requirements, agencies should refer to Attachment A as it provides an updated Note 2(ag)
Impact of Accounting Standards Issued but yet to be Applied disclosure which contains a list of standards
and interpretations, which are assessed as being applicable to ‘Example Agency’, that have been issued
but are not yet effective for the 2014-15 financial year. This updates the example provided within
Note 2(ag) as presented in the 2014-15 Model Financial Statements.
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ACT Accounting Policy —AASB Standards issued which are not yet effective
as at 30 June 2015
The Note 2(ag) disclosure in Attachment A and in the Model assumes that there is not a material
financial impact on ‘Example Agency’ resulting from standards issued but not yet effective. If these
standards have a material financial impact on an agency the note disclosure will need to be amended
accordingly.
Note that only standards issued but not yet effective which are applicable to an agency must be
included in Note 2(ag). Agencies should also check the additional standards listed in the commentary to
Note 2 (as appearing in Attachment A). These standards have been assessed as not applicable to most
agencies; however, agencies should verify that they don’t apply.
3 Summaries of Changes to Standards and Interpretations Issued but Not
yet Effective
The following standards and interpretations, currently issued by the AASB, which apply to reporting
periods ending after 30 June 2015 include:
AASB Compiled Standards
AASB 9
Financial Instruments
AASB 14
Regulatory Deferral Accounts
AASB 15
Revenue from Contracts with Customers
AASB 1056
Superannuation Entities
AASB Amending Standards
AASB 2010-7
Amendments to Australian Accounting Standards arising from AASB 9 (December 2010)
AASB 2013-9
Amendments to Australian Accounting Standards – Conceptual Framework, Materiality
and Financial Instruments Part C Financial Instruments
AASB 2014-1
Amendments to Australian Accounting Standards Part D Consequential Amendments
arising from AASB 14 Regulatory Deferral Accounts and Part E Financial Instruments
AASB 2014-3
Amendments to Australian Accounting Standards – Accounting for Acquisitions of
Interests in Joint Operations
AASB 2014-4
Amendments to Australian Accounting Standards – Clarification of Acceptable Methods
of Depreciation and Amortisation
AASB 2014-5
Amendments to Australian Accounting Standards arising from AASB 15
AASB 2014-6
Amendments to Australian Accounting Standards – Agriculture: Bearer Plants
AASB 2014-7
Amendments to Australian Accounting Standards arising from AASB 9 (December 2014)
AASB 2014-8
Amendments to Australian Accounting Standards arising from AASB 9 (December 2014)
– Application of ASSB 9 (December 2009) and AASB 9 (December 2010)
AASB 2014-9
Amendments to Australian Accounting Standards – Equity Method in Separate
Financial Statements
AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture
AASB 2015-1
Amendments to Australian Accounting Standards – Annual Improvements to Australian
Accounting Standards 2012-2014 Cycle
AASB 2015-2
Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments
to AASB 101
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ACT Accounting Policy —AASB Standards issued which are not yet effective
as at 30 June 2015
AASB 2015-3
AASB 2015-4
AASB 2015-5
AASB 2015-6
3.1
Amendments to Australian Accounting Standards arising from the withdrawal of AASB
1031 Materiality
Amendments to Australian Accounting Standards – Financial Reporting Requirements
for Australian Groups with a Foreign Parent
Amendments to Australian accounting Standards – Investment Entities: Applying the
Consolidation Exception
Amendments to Australian Accounting Standards – Extending Related Party Disclosures
to Not-for-Profit Public Sector Entities
AASB 9 Financial Instruments (Appl. 1 Jan 2018)
Background
The completed version of AASB 9 (2014) was issued in December 2014. It supersedes AASB 9 (2009),
AASB 9 (2010) and AASB 139 Financial Instruments: Recognition and Measurement. AASB 9 (2014) sets
out the requirements for recognising, classifying, measuring and de-recognising financial assets and
financial liabilities, and the impairment of financial assets, hybrid contracts and hedging.
Application Date
AASB 2013-9 Part C extended the mandatory date of AASB 9 by 2 years to annual reporting periods
beginning on or after 1 January 2017. AASB 2014-1 further extended the application date of AASB 9 to
annual reporting periods beginning on or after 1 January 2018.
Changes
Financial Assets
The following changes, in the treatment of financial assets, have arisen as a result of the introduction of
AASB 9 now applicable to reporting periods commencing on or after 1 January 2018:
 Financial assets will be classified differently. Financial assets will only be classified as:
o financial assets measured at amortised cost;
o financial assets at fair value through other comprehensive income; or
o financial assets at fair value through profit or loss.
The determining criteria will be based on:
a) the objective of the entity’s business model for managing financial assets, and
b) the characteristics of the contractual cash flows.
This will replace the four categories of financial assets in AASB 139, which are:
o financial asset at fair value through profit or loss;
o held-to-maturity financial assets;
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ACT Accounting Policy —AASB Standards issued which are not yet effective
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o loans and receivables; and
o available-for-sale financial assets.
 Where an agency holds an asset or portfolio of assets with the main objective to collect contractual
cash flows on specific dates and those cash flows are solely in the form of principal and/or interest,
these assets will be measured at amortised cost.
 Measurement of a financial asset will be required to be at fair value through other comprehensive
income if the asset is held within a business model whose objective is both to hold assets in order to
collect cash flows and to sell those assets; and those cash flows are solely payments of principal and
interest.
 All other financial assets must be measured at fair value through profit and loss.
 When AASB 9 is applied, agencies will be required to assess the classification of all financial assets
currently held, and apply any changes in measurement and recognition retrospectively in accordance
with AASB 108.
 On application of AASB 9, the measurement basis for an agency’s cash at bank, receivables, and
investments with the Territory Banking Account cash enhanced portfolio, are not likely to change.
However, as a result of the new measurement criteria being dependent upon the agency’s business
model (i.e. whether the investment is managed with a view for capital growth or to collect
contractual cash flows) the measurement basis for an agency’s investments with the TBA in the fixed
interest portfolio may change from fair value to amortised cost.
 Agencies should analyse their own financial assets to determine the correct classification and
measurement basis for their financial assets. A change in measurement basis, may give rise to a
material financial impact on agency’s financial statements.
 An irrevocable election is available at initial recognition, to present in other comprehensive income,
changes in fair value of an investment in an equity instrument that is not held for trading. Dividends,
which are a return on investment, can be recognised in profit or loss.
 Financial assets can be reclassified in instances where the agency’s business model changes.
 Financial assets can be designated and measured at fair value, if doing so eliminates, or significantly
reduces, a measurement or recognition inconsistency.
Changes in the treatment of financial assets that will most likely only be applicable to agencies such as
the Territory Banking Account and the Superannuation Provision Account.
 Agencies that have hybrid contracts which contain a host that is an asset within the scope of AASB 9
shall treat the whole contract in accordance with AASB 9.
 Investments in unquoted equity instruments must be measured at fair value, however, in some
instances cost may be an appropriate estimate of fair value.
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ACT Accounting Policy —AASB Standards issued which are not yet effective
as at 30 June 2015
 Investments in contractually linked instruments, that create concentrations of credit risk, are
classified and measured using a ‘look through’ approach. This approach looks through to the
underlying assets generating cash flows and assesses the cash flows against the classification criteria.
Financial Liabilities
In reissuing AASB 9 (December 2010) the de-recognition requirements for financial instruments and the
recognition and measurement requirements for financial liabilities were transferred from AASB 139.

AASB 9 will not allow re-classification of financial liabilities.

The only significant change is to require that portion of a change of fair value relating to an entity’s
own credit risk for financial liabilities measured at fair value using the fair value option, to be
separately presented in other comprehensive income (OCI), except when that would create an
accounting mismatch. If such a mismatch would be created or enlarged, agencies are required to
present all changes in fair value (including the effects of changes in the credit risk of the liability) in
profit or loss.

In relation to financial liabilities that are loan commitments or financial guarantee contracts, all gains
and losses must be recognised in the operating result.
Impairment of Financial Assets

Under the impairment approach in AASB 9 it is no longer necessary for a credit event to have
occurred before losses are recognised. Instead an entity always accounts for expected credit losses,
and changes in those expected credit losses. The amount of expected credit losses is updated at
each reporting date to reflect changes in credit risk since initial recognition, and consequentially
more timely information is provided about expected credit losses.
Hedge Accounting

The hedge accounting additions to AASB 9 should not generally impact on ACT directorates and
territory authorities.
Impact
AASB 9 should not materially impact directorates and territory authorities. The new impairment model
may result in the earlier recognition of credit losses. Agencies should familiarise themselves with AASB
9. Detailed guidance will be provided to agencies prior to AASB 9 having to be applied.
3.2
AASB 14 Regulatory Deferral Accounts (Appl. 1 Jan 2016)
Background
AASB 14 Regulatory Deferral Accounts is an interim standard pending completion by the IASB of a
comprehensive project on rate regulated activities. It is applicable to first time adopters of IFRS that
provide goods or services to customers at a price that is rate regulated by government e.g. the supply of
electricity or water.
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ACT Accounting Policy —AASB Standards issued which are not yet effective
as at 30 June 2015
Impact
As ACT directorates and territory authorities have already adopted IFRS and are not generally involved
in rate regulated activities this standard will not apply to them.
3.3
AASB 15 Revenue from Contracts with Customers (Appl. 1 Jan 2017)
Background
AASB 15 Revenue from Contracts with Customers establishes the principles that an entity should apply
to report to users of financial statements about the nature, amount, timing and uncertainty of revenue
and cash flows arising from a contract with a customer. The core principle of AASB 15 is that an entity
should recognise revenue in line with the transfer of promised goods or services to customers and that
the amount recognised reflects the consideration which the entity expects to be entitled to in exchange
for those goods or services. AASB 15 replaces:

AASB 111 Construction Contracts;

AASB 118 Revenue;

Interpretation 13 Customer Loyalty Programmes;

Interpretation 15 Agreements for the Construction of Real Estate;

Interpretation 18 Transfers of Assets from Customers;

Interpretation 131 Revenue – Barter Transactions Involving Advertising Services; and

Interpretation 1042 Subscriber Acquisition Costs in the Telecommunications Industry.
Contracts outside the scope of AASB 15 include lease contracts (AASB 17 Leases), insurance contracts
(AASB 4 Insurance Contracts); and financial instruments (AASB 9 Financial Instruments).
A contract is an agreement between two or more parties that creates enforceable rights and obligations.
A contract may take different forms and may be verbal. Just because a customer has not exercised their
rights in the past does not mean they are not enforceable. A customer is a party that has contracted
with an entity to obtain goods and services that are an output of the entity’s ordinary activities in
exchange for consideration.
AASB 15 establishes a five step revenue recognition model:

identify the contract with the customer;

identify the performance obligations in the contract;

determine the transaction price;

allocate the transaction price to the performance obligations; and

recognise revenue progressively as individual performance obligations are satisfied.
To apply the five step model directorates and territory authorities may need to exercise significant
judgement when considering all the facts and circumstances in relation to their contracts. Depending
upon the specific terms of a contract, the model may result in a change in the timing and/or amount of
revenue to be recognised. Some revenue may be recognised at a point in time (when control is
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ACT Accounting Policy —AASB Standards issued which are not yet effective
as at 30 June 2015
transferred to the customer) or over the term of the contract (when performance obligations are
satisfied progressively over a period of time).
In April 2015 the AASB released Exposure Draft (ED) 260 Income of Not-for-Profit Entities which
proposes requirements for the recognition, measurement and disclosure of the income of not-for-profit
entities that apply the principles of AASB 15 to income from transactions of those entities. Subject to
the outcomes of the exposure draft, the AASB is expected to incorporate the finalised requirements into
AASB 15. A large part of the content of AASB 1004 Contributions may be replaced by extra material in
AASB 15.
Impact
Directorates and territory authorities will need to familiarise themselves with AASB 15. The impact on
agencies will depend up on the goods and services they provide and how the five step revenue
recognition model applies to their contacts with customers. There may well be an impact of deferring
revenue that is currently recognised earlier .e.g. when cash is received but the performance obligation
under the contract has not been met.
The International Accounting Standards Board (IASB) is considering deferring the effective application
date of IFRS 15 Revenue from Contracts with Customers until 1 January 2018.
3.4
AASB 1056 Superannuation Entities (Appl. 1 Jul 2016)
Background
AASB 1056 Superannuation Entities replaces AAS 25 Financial Reporting by Superannuation Plans.
AASB 25 was issued in the early 1990s to address the financial reporting issues that superannuation
entities were dealing with at the time. AASB 1056 updates the requirements in the light of recent
significant developments in the superannuation industry and the adoption of IFRS in Australia.
Impact
AASB 1056 applies to the large superannuation entities regulated by the Australian Prudential
Regulation Authority and to public sector superannuation entities. It does not apply to directorates and
territory authorities.
3.5
AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (Appl. 1 Jan
2018)
Background
The release of AASB 9 Financial Instruments necessitates consequential amendments to the following
standards and interpretations:
AASB 1
AASB 3
AASB 4
AASB 5
AASB 7
First-time Adoption of Australian Accounting Standards;
Business Combinations;
Insurance Contracts;
Non-current Assets Held for Sale and Discontinued Operations;
Financial Instruments: Disclosures;
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ACT Accounting Policy —AASB Standards issued which are not yet effective
as at 30 June 2015
AASB 101
AASB 102
AASB 108
AASB 112
AASB 118
AASB 120
AASB 121
AASB 127
AASB 128
AASB 131
AASB 132
AASB 136
AASB 137
AASB 139
AASB 1023
AASB 1038
Interpretation 2
Interpretation 5
Interpretation 10
Interpretation 12
Interpretation 19
Interpretation 127
Presentation of Financial Statements;
Inventories;
Accounting Policies, Changes in Accounting Estimates and Errors;
Income Taxes;
Revenue;
Accounting for Government Grants and Disclosure of Government Assistance;
The Effect of Changes in Foreign Exchange Rates;
Consolidated and Separate Financial Statements;
Investments in Associates;
Interests in Joint Ventures;
Financial Instruments: Presentation;
Impairment of Assets;
Provisions, Contingent Liabilities and Contingent Assets;
Financial Instruments: Recognition and Measurement;
General Insurance Contracts;
Life Insurance Contracts;
Members’ Shares in Co-operative Entities and Similar Instruments;
Rights to Interests arising from Decommissioning, Restoration and Environmental
Rehabilitation Funds;
Interim Financial Reporting and Impairment;
Service Concession Arrangements;
Extinguishing Financial Liabilities with Equity Instruments; and
Evaluating the Substance of Transactions Involving the Legal Form of a Lease.
Changes
This standard was originally produced under the title of AASB 2009-11 which incorporated changes
made by the introduction of AASB 9 up until December 2009, however, that standard has been
superseded by this standard (AASB 2010-7) which incorporates changes made by the introduction of
AASB 9 up until December 2010.
The most significant changes arising from AASB 2010-7 applicable to reporting periods commencing on
or after 1 January 2018 are those relating to AASB 7, AASB 101 and AASB 139.
AASB 7 Financial Instruments: Disclosures
 References to AASB 9 have been added to AASB 7.2-5; references have been made to the new
financial asset classifications and to AASB 9 in AASB 7.8 & 9 and references to the new classification
of financial assets and to AASB 9 have been added to AASB 7.20. Note that these changes relate to
the disclosure required and will not have a material financial impact on agencies.
 Additional disclosures are required for designated or derecognised investments in equity instruments
measured at fair value through other comprehensive income as per paragraph 11A & 11B.
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as at 30 June 2015
 Prior reclassification disclosures in paragraph 12 & 12A have been replaced with new disclosures
which are required where an agency changes its business model for managing assets and as a result
reclassifies all affected financial assets (see AASB 7.12B and 12C). There are also new disclosure
requirements regarding the reclassification of financial assets in AASB 7.12D. As these changes are in
relation to disclosures, they will not result in any material financial impact on agencies.
 An additional disclosure is required (AASB 7.20A) showing an analysis of the gain or loss recognised in
the Operating Statement arising from derecognition of financial assets measured at amortised cost.
The disclosure shall also include the reasons for derecognising those financial assets. As this is a
disclosure it will not have a material financial impact on agencies.
 Fair value disclosures for investments in equity instruments, that do not have a quoted market price
in an active market, are now required. As this is a change in disclosure it will not have a material
financial impact on agencies (AASB 7.29).
 On initial application of AASB 9, a number of quantitative disclosures are required by AASB 7.44I and
there are also a number of qualitative disclosures required by AASB 7.44J. As these changes relate to
disclosure requirements, they will not have a material financial impact on agencies.
 Appendix A (Defined Terms) no longer provides the definitions in AASB 139 for:
o Available-for-sale financial assets;
o Financial assets at fair value through profit or loss;
o Financial asset or liability held for trading;
o Held to maturity investments; and
o Loans and receivables.
These references have been deleted from AASB 139. However, a reference for ‘held for trading’ is
now included in AASB 132.
 Appendix B has some minor changes including:
o reference change to AASB 9 instead of AASB 139 in B1;
o removal of financial assets out of the requirements to disclose the measurement basis in
paragraph B5(a). However, further advice is now provided in B5(aa) in regards to financial
assets;
o change in terminology from ‘loans and receivables’ to just ‘loans’ in paragraph B10 and ‘debt
instruments’ in paragraph B22; and
o changes have been made in paragraph B27 in terminology in regards to the instruments which
require separate sensitivity disclosure as per paragraph 40(a).
AASB 101 Presentation of Financial Statements
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ACT Accounting Policy —AASB Standards issued which are not yet effective
as at 30 June 2015

Details of the components of other comprehensive income (paragraph 7) now includes gains and
losses from investments in equity instruments measured at fair value through other comprehensive
income in accordance with AASB 9 5.7.5.

The operating statement shall now include additional line items which detail the gains and losses
arising from:
o the derecognition of financial assets measured at amortised cost (paragraph 82(aa)); and
o the difference between the carrying amount and fair value of financial assets reclassified from
amortised cost to fair value (paragraph 82(ca)).

Changes have been made to AASB 101.68, 93 and 95 to reflect the new classifications of financial
assets.
AASB 139 Financial Instruments: Recognition and Measurement
 In AASB 139.1 the principles for classifying and measuring financial assets, have been removed from
the objective of the standard. These principles are now contained within AASB 9.

References to the new standard AASB 9 Financial Instruments are made in AASB 139. 2, 4, 8, 90, 96,
103O and AG 118 (b).

Paragraphs and their content that have been deleted include:
o 45 - 46 regarding subsequent measurement of financial assets;
o 10 - 13 regarding embedded derivatives;
o 14 - 42 regarding recognition and derecognition of financial instruments;
o 43-57 regarding measurement of financial instruments;
o 61 regarding objective evidence of impairment;
o 66-70 regarding financial assets carried at cost and available for sale financial assets; and
o 79 with regard to the guidance on held-to-maturity investments.

Guidance relating to the treatment of estimates of cash receipts in instances where financial assets
have been reclassified, in regard to the effective interest rate, appearing in AASB 139.AG8 has been
deleted.

Impairment and uncollectibility of financial assets referred to in paragraphs 58 and AG84 now only
applies to financial assets measured at amortised cost.

Two examples of when an entity manages a group of financial assets and liabilities in accordance
with a documented risk management or investment strategy have been deleted from AASB 139.AG4I
and two examples provided in AASB 139.AG4E have been deleted and reference to financial assets
classified as available-for-sale has been removed.

Application guidance regarding the valuation of investments in equity instruments that do not have
a quoted market price in an active market has been removed from AASB 139.AG80, AG81, and AG96.
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ACT Accounting Policy —AASB Standards issued which are not yet effective
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
Application guidance in AASB 139.AG83 regarding the treatment of monetary and non-monetary
available-for-sale financial assets and liabilities in foreign currency has been removed.
Impact
See the discussion under AASB 9 Financial Instruments for the applicability of that standard to agencies.
3.6
AASB 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework,
Materiality and Financial Instruments (Part C Financial Instruments Appl. 1 Jan 2015)
Part C Financial Instruments
The main amendments regarding financial instruments are as follows:

to add Chapter 6 Hedge Accounting and make consequential amendments to AASB 9 Financial
Instruments and numerous other standards;

to permit requirements relating to the ‘own credit risk’ of financial liabilities measured at fair value
to be applied without applying any other requirements of AASB 9 at the same time;

to amend the mandatory application date of AASB 9 so that AASB 9 is required to be applied for
annual reporting periods beginning on or after 1 January 2017 instead of 1 January 2015 (note that
AASB 2014-1 Amendments to Australian Accounting Standards Part E amended the application
date of AASB 9 to 1 January 2018); and

to add or amend the Australian Accounting Standards – Reduced Disclosure Requirements for AASB
7 Financial Instruments: Disclosures and AASB 101 Presentation of Financial Statements. AASB 1053
Application of Tiers of Australian Accounting Standards provides further information regarding the
differential reporting framework and the two tiers of reporting requirements for general purpose
financial statements.
Impact
ACT directorates and territory authorities do not engage in hedging of financial instruments and these
amendments will not apply to them. It is ACT Disclosure Policy that agencies that are consolidated into
the whole of Government financial statements not adopt the reduced disclosure regime.
See the discussion under AASB 9 Financial Instruments for the applicability of that standard to agencies.
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3.7
AASB 2014-1 Amendments to Australian Accounting Standards Part D – Consequential
Amendments arising from AASB 14 Regulatory Deferral Accounts (Appl. 1 Jan 2016); and Part E –
Financial Instruments (Appl. 1 Jan 2018)
Part D Consequential Amendments arising from AASB 14 Regulatory Deferral Accounts
Background
Part D of AASB 2014-1 makes amendments to AASB 1 First-time Adoption of Australian Accounting
Standards, which arise from the release of AASB 14 Regulatory Deferral Accounts in June 2014. AASB 14
permits first-time adopters to continue to account for amounts related to rate regulation in accordance
with their previous GAAP when they adopt Australian Accounting Standards. However, to enhance
comparability with entities that already apply Australian Accounting Standards and do not recognise
such amounts, AASB 14 requires that the effect of rate regulation must be presented separately from
other items. An entity that is not a first-time adopter of Australian Accounting Standards will not be able
to apply AASB 14.
Impact
As ACT directorates and territory authorities have already adopted IFRS and are not generally involved
in rate regulated activities Part D of AASB 2014-1 will not apply to them.
Part E – Financial Instruments
Background
Part E makes amendments to Australian Accounting Standards to reflect the AASB’s decision to defer
the mandatory application date of AASB 9 Financial Instruments to annual reporting periods beginning
on or after 1 January 2018. Part E also makes amendments to numerous Australian Accounting
Standards as a consequence of the introduction of Chapter 6 Hedge Accounting into AASB 9 Financial
Instruments and to amend reduced disclosure requirements for AASB 7 Financial Instruments:
Disclosures and AASB 101 Presentation of Financial Statements.
These consequential amendments and changes to reduced disclosure requirements include
amendments that had been made by Part C of AASB 2013-9, but which needed to be remade in order to
be effective, in view of procedural issues with repealed Accounting Standards.
Impact
See the discussion under AASB 9 Financial Instruments for the applicability of that standard to agencies.
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3.8
AASB 2014-3 Amendments to Australian Accounting Standards – Accounting for Acquisitions of
Interests in Joint Operations (Appl. 1 Jan 2016)
Background
AASB 2014-3 Amendments to Australian Accounting Standards – Accounting for Acquisitions of Interests
in Joint Operations amends AASB 11 Joint Arrangements to provide guidance on the accounting for
acquisitions of interests in joint operations in which the activity constitutes a business. The
amendments require:
 the acquirer of an interest in a joint operation in which the activity constitutes a business, as defined
in AASB 3 Business Combinations , to apply all of the principles on business combinations accounting
in AASB 3 and other Australian Accounting standards except for those principles that conflict with
the guidance in AASB 11; and

the acquirer to disclose the information required by AASB 3 and other Australian Accounting
Standards for business combinations.
Impact
As directorates and territory authorities do not generally engage in joint operations, there is no material
financial impact expected and no discussion of the detailed changes in this paper.
3.9
AASB 2014-4 Amendments to Australian Accounting Standards – Clarification of Acceptable
Methods of Depreciation (Appl. 1 Jan 2016)
Background
AASB 2014-4 Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of
Depreciation makes amendments to AASB 16 Property, Plant and Equipment and AASB 138 Intangible
Assets. These amendments:
 establish the principle for the basis of depreciation and amortisation as being the expected pattern
of consumption of the future economic benefits of an asset;

clarify that the use of revenue-based methods to calculate the depreciation of an asset is not
appropriate because revenue generated by an activity that includes the use of an asset generally
reflects factors other than the consumption of the economic benefits embodied in the asset; and

clarify that revenue is generally presumed to be an inappropriate basis for measuring the
consumption of the economic benefits embodied in an intangible asset. This presumption can
however be rebutted in certain limited circumstances e.g. when the predominant limiting factor that
is inherent in an intangible asset is the achievement of a revenue threshold. AASB 2014-4 refers to a
concession to explore and extract gold from a mine and the right to operate a toll road for a fixed
amount of revenue.
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Impact
The adoption of this standard is expected to have no material financial impact for directorates and
territory authorities as their depreciation and amortisation is determined by the consumption of future
economic benefits, not revenue generation.
3.10 AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15 (Appl. 1 Jan
2017)
Background
AASB 2014-5 makes amendments to Australian accounting standards and interpretations arising from
the release of AASB 15 Revenue from Contracts with Customers. AASB 15 establishes the principles that
an entity should apply to report to users of financial statements about the nature, amount, timing and
uncertainty of revenue and cash flows arising from a contract with a customer.
The International Accounting Standards Board (IASB) is considering deferring the effective application
date of IFRS 15 Revenue from Contracts with Customers until 1 January 2018.
Impact
Directorates and territory authorities will need to familiarise themselves with AASB 15. The impact on
agencies will depend up on the goods and services they provide and how the five step revenue
recognition model in AASB 15 applies to their contacts with customers. There may well be an impact of
deferring revenue that is currently recognised earlier .e.g. when cash is received but the performance
obligation under the contract has not been met.
3.11 AASB 2014-6 Amendments to Australian Accounting Standards – Agriculture: Bearer Plants
(Appl. 1 Jan 2016)
Background
AASB 2014-6 Amendments to Australian Accounting Standards – Agriculture: Bearer Plants defines a
bearer plant and requires bearer plants to be accounted for as property, plant and equipment and
included within the scope of AASB 116 Property, Plant and Equipment instead of AASB 141 Agriculture.
A bearer plant is defined as a living plant that:

is used in the production of or supply of agricultural produce;

is expected to bear produce for more than one period; and

has a remote likelihood of being sold as agricultural produce, except for incidental scrap sales.
Plants such as tea bushes, grape vines, oil palms and rubber trees, would usually meet the definition of a
bearer plant and would be within the scope of AASB 116. The produce growing on bearer plants, for
example tea leaves, grapes, oil palm fruit and latex remain within the scope of AASB 141.
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Impact
Directorates and territory authorities do not engage in the production and supply of agricultural
produce and do not have bearer plants. Consequently this standard does not have any material
financial impact on them.
3.12 AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December
2014) (Appl. 1 Jan 2018)
Background
AASB 2014-7 Amendments to Australian Accounting Standards arsing from AASB 9 (December 2014),
outlines the consequential amendments arising from the release of the finalised AASB 9. AASB 9
Financial Instruments (December 2014) requires that entities recognise impairment losses on financial
assets on an expected basis rather than an incurred basis and introduces a fair value through other
comprehensive income (FVOCI) category for non-equity financial assets.
The consequential amendments arising from AASB 9 include amending the existing disclosures in set out
in AASB 7 Financial Instruments: Disclosures in relation to the impairment and classification and
measurement of financial assets.
Impact
See the discussion under AASB 9 Financial Instruments for the applicability of that standard to agencies.
3.13 AASB 2014-8 Amendments to Australian Accounting Standards arising from AASB 9 (December
2014) – Application of AASB 9 (December 2009) and AASB 9 (December 2010) (Appl. 1 Jan 2015)
Background
AASB 2014-8 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) –
Application of AASB 9 (December 2009) and AASB 9 (December 2010) makes amendments to AASB 9
Financial Instruments (December 2009) and AASB 9 Financial Instruments (December 2010) arising from
the release of AASB 9 Financial Instruments (2014).
AASB 2014-8 makes amendments to existing versions of AASB 9 such that for annual reporting periods
beginning on or after 1 January 2015, an entity may apply AASB 9 (December 2009) or AASB 9
(December 2010) if, and only if, the entity’s date of initial application (as described in the applicable
Standard) is before 1 February 2015.
Impact
ACT Directorates and territory authorities will not be early adopting AASB 9 Financial Instruments and
hence this amending standard has no impact on them.
See the discussion under AASB 9 Financial Instruments for the applicability of that standard to agencies.
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3.14 AASB 2014-9 Amendments to Australian Accounting Standards – Equity Method in Separate
Financial Statements (Appl. 1 Jan 2016)
Background
AASB 2014-9 Amendments to Australian Accounting Standards – Equity Method in Separate Financial
Statements amends AASB 127 Separate Financial Statements and consequentially amends AASB 1 Firsttime Adoption of Australian Accounting Standards and AASB 128 Investments in Associates and Joint
Ventures, to allow entities to use the equity method of accounting for investments in subsidiaries, joint
ventures and associates in their separate financial statements.
Impact
Directorates and territory authorities do not generally have any investments in subsidiaries, joint
ventures and associates and this standard will not have any material financial impact on them.
3.15 AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets
between an Investor and Its Associate or Joint Venture (Appl. 1 Jan 2016)
Background
AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between
an Investor and Its Associate or Joint Venture amends AASB 10 Consolidated Financial Statements and
AASB 128 Investments in Associates and Joint Ventures to address an inconsistency between the
requirements in AASB 10 and those in AASB 128 (August 2011), in dealing with the sale or contribution
of assets between an investor and its associate or joint venture. The amendments require:
 a full gain or loss to be recognised when a transaction involves a business (whether it is housed in a
subsidiary or not); and

a partial gain or loss to be recognised when a transaction involves assets that do not constitute a
business, even if these assets are housed in a subsidiary.
Impact
Directorates and territory authorities do not generally have any investments in subsidiaries, joint
ventures and associates and this standard will not have any material financial impact on them.
3.16 AASB 2015-1 Amendments to Australian Accounting Standards – Annual Improvements to
Australian Accounting Standards 2012-2014 Cycle (Appl. 1 Jan 2016)
Background
AASB 2015-1 Amendments to Australian Accounting Standards – Annual Improvements to Australian
Accounting Standards 2012–2014 Cycle makes amendments to various Australian Accounting Standards
arising from the release of International Financial Reporting Standard Annual Improvements to IFRSs
2012–2014 Cycle in September 2014 by the IASB, and editorial corrections. The IASB’s Annual
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as at 30 June 2015
Improvements process provides a vehicle for making non urgent but necessary amendments to
Standards.
The subjects of the principal amendments to standards are:

AASB 5 Non-current Assets Held for Sale and Discontinued Operations is amended to clarify that
when an asset (or disposal group) is reclassified from ‘held for sale’ to ‘held for distribution’, or vice
versa, this does not constitute a change to a plan of sale or distribution, and does not have to be
accounted for as such.

AASB 7 Financial Instruments: Disclosures is amended relating to servicing contracts so that if an
entity transfers a financial asset to a third party under conditions which allow the transferor to
derecognise the asset, AASB 7 requires disclosure of all types of continuing involvement that the
entity might still have in the transferred assets. There is also an amendment clarifying that the
additional disclosure relating to offsetting financial assets and financial liabilities is not specifically
required for all interim periods, unless required by AASB 134 Interim Financial Reporting.

AASB 119 Employee Benefits is amended to clarify that high-quality corporate bonds or government
bonds used in determining discount rates should be issued in the same currency in which the
benefits are to be paid. Therefore, the depth of the market for high-quality corporate and
government bonds should be assessed at the currency level and not at the country level.

AASB 134 Interim Financial Reporting is amended to clarify that certain disclosures, if they are not
included in the notes to the interim financial statements, may be disclosed elsewhere in the interim
financial report.
Impact
These amendments are generally not of relevance to directorates and territory authorities and there is
no expected material financial impact from them.
3.17 AASB 2015-2 Amendments to Australian Accounting Standards– Disclosure Initiative:
Amendments to AASB 101 (Appl. 1 Jan 2016)
Background
The main amendments that AASB 2015-2 Amendments to Australian Accounting Standards– Disclosure
Initiative: Amendments to AASB 101 makes to AASB 101 Presentation of Financial Statements are to
clarify that:
 the concept of materiality applies to all accounting standards, including each disclosure requirement
in a standard. Specific single disclosures that are not material do not have to be presented – even if
they are a minimum requirement of a standard. For instance, an entity would not need to provide a
reconciliation of its property, plant and equipment assets if those assets are immaterial to the entity;

the disclosure of immaterial information reduces the understandability of financial statements
because immaterial information can obscure and detract from the useful information that is
reported; and

professional judgement should be used to determine where and in what order information is
presented in the financial statements. For example, an entity does not need to co-locate all of its
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as at 30 June 2015
accounting policies into one disclosure and that disclosure need not be the first note to the financial
statements.
Impact
AASB 2015-2 will have no material financial impact on the financial statements of directorates and
territory authorities. There will be a potential reduction in disclosures required and further guidance
will be provided to agencies on the implementation of this standard.
3.18 AASB 2015-3 Amendments to Australian Accounting Standards arising from the Withdrawal of
AASB 1031 Materiality (Appl. 1 July 2015)
Background
AASB 2015-3 Amendments to Australian Accounting Standards arising from the Withdrawal of AASB
1031 Materiality completes the AASB’s project to remove Australian guidance on materiality from
Australian Accounting Standards. The AASB decided in 2013 that it should not retain unnecessary local
guidance on matters covered by International Financial Reporting Standards (IFRS). Since AASB 1031
was first issued in 2004, the IASB has improved the guidance on materiality contained within the IFRS
conceptual framework and further improvement is planned by the IASB as part of its Disclosure
Initiative.
Impact
The withdrawal of AASB 1031 does not impact practice regarding the application of materiality in
financial reporting and the level of disclosure required by directorates and territory authorities.
3.19 AASB 2015-4 Amendments to Australian Accounting Standards – Financial Reporting
Requirements for Australian Groups with a Foreign Parent (Appl. 1 July 2015)
Background
AASB 2015-4 Amendments to Australian Accounting Standards – Financial Reporting Requirements for
Australian Groups with a Foreign Parent amends AASB 128 Investments in Associates and Joint Ventures
to ensure that the reporting requirements of Australian groups with a foreign parent align with those
available in AASB 10 Consolidated Financial Statements for these groups. AASB 128 will now only
require the ultimate Australian entity to apply the equity method in accounting for interests in
associates or joint ventures, if either the entity or the group, or both the entity and group are reporting
entities.
Impact
Directorates and territory authorities do not have a foreign parent and this standard does not have a
material financial impact on them.
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3.20 AASB 2015-5 Amendments to Australian Accounting Standards – Investment Entities: Applying
the Consolidation Exception (Appl. 1 Jan 2016)
Background
AASB 2015-5 Amendments to Australian Accounting Standards – Investment Entities: Applying the
Consolidation Exception amends AASB 10 Consolidated Financial Statements, AASB 12 Disclosure of
Interests in Other Entities and AASB 128 Investments in Associates and Joint Ventures to:
 confirm that the exemption from preparing consolidated financial statements set out in AASB 10 is
available to a parent entity that is a subsidiary of an investment entity;

clarify the applicability of AASB 12 to the financial statements of an investment entity; and

introduce relief in AASB 128 to permit a non-investment entity investor in an associate or joint
venture that is an investment entity to retain the fair value through profit or loss measurement
applied by the associate or joint venture to its subsidiaries.
Impact
Directorates and territory authorities do not normally have any investments in subsidiaries, joint
ventures or associates and this standard does not have a material financial impact on them.
3.21 AASB 2015-6 Amendments to Australian Accounting Standards – Extending Related Party
Disclosures to Not-for-Profit Public Sector Entities (Appl. 1 July 2016)
Background
AASB 2015-6 Amendments to Australian Accounting Standards – Extending Related Party Disclosures to
Not-for-Profit Public Sector Entities extends the scope of AASB 124 Related Party Transactions to the
not-for-profit sector and updates AASB 124 to include implementation guidance (including illustrative
examples) to assist not-for-profit entities to apply the new requirements. The implementation guidance
and basis for conclusions in AASB 2015-6 clarify that:

when assessing whether a person is a member of the Key Management Personnel (KMP) of an
entity, not-for-profit public sector entities should consider the facts and circumstances, including
the terms of the relevant legislative instruments that give rise to the entity. A person is a KMP if
they have the authority and responsibility for planning, directing and controlling the activities of
the entity, directly or indirectly.

where a KMP minister is compensated through one or more central government agencies or
authorities, disclosure of KMP compensation is not required for the Minister(s);

unless the entity has to reimburse the central government agency or authority for its KMP
services, it does not have to make disclosures about the services provided by a separate
management entity.
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ACT Accounting Policy —AASB Standards issued which are not yet effective
as at 30 June 2015

only material related party transactions with Ministers need be disclosed. Judgement is used to
assess whether a transaction is material. Related party transactions occurring during the course
of delivering a public sector entity’s objectives which occur on the same terms as those provided
to the general public may not be considered material for the purposes of disclosure in the
financial statements e.g. taxes and rates or use of a public swimming pool. On the other hand, a
commercial contract for services may need to be disclosed.

ministers who are members of the KMP for the government would also be related parties not
only of the government but also of each controlled entity of the government. Accordingly, a
subsidiary government entity will be required to disclose related party transactions with
ministers who may have no responsibility for the entity, to the extent the disclosures are
considered material from the entity’s perspective.

related party transactions between an entity and its government-related entities need only be
quantified if they are individually or collectively significant.
Impact
Directorates and territory authorities should carefully examine AASB 2015-6 including the
Implementation Guidance and Basis for Conclusions. There may be a need to set up systems to capture
the relevant information required. While there is no material financial impact in implementing this
standard there will be increased disclosure required by agencies. Further guidance on these disclosure
requirements will be provided prior to them coming into effect.
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as at 30 June 2015
ATTACHMENT A
Background
Attached is a copy of the ‘Impact of Accounting Standards Issued but yet to be Applied’ disclosure as
required by directorates and territory authorities for inclusion in their 2014-15 financial statements.
However, the list of standards needs to be tailored by including only those standards applicable to the
agency.
Please note that the standards and interpretations below are applicable to ‘Example Agency’. Standards
and text appearing in red, were not included in the 2014-15 Model Financial Statements but have been
added to this Note 2(ag) disclosure. A complete list of standards for the consideration of each agency
can be found by combining the list below and the list located within the grey commentary section. Each
standard and interpretation mentioned below, and as appearing in the grey commentary section, is
discussed in this paper.
AASB
101.10(e)
Note 2. Summary of Significant Accounting Policies
(ag)
AASB 108.30
& 31
Impact of Accounting Standards Issued but yet to be Applied
The following new and revised accounting standards and interpretations have been issued by the Australian
Accounting Standards Board but do not apply to the current reporting period. These standards and
interpretations are applicable to future reporting periods. ‘Example Agency’ does not intend to adopt these
standards and interpretations early. Where applicable, these Australian Accounting Standards will be adopted
from their application date.

AASB 9 Financial Instruments (December 2014) (application date 1 Jan 2018);
This standard supersedes AASB 139 Financial Instruments: Recognition and Measurement. The main impact of
AASB 9 is that it will change the classification, measurement and disclosures of ‘Example Agency’s financial
assets. No material financial impact on ‘Example Agency’ is expected.

AASB 15 Revenue from Contracts with Customers (application date 1 Jan 2017);
AASB 15 is the new standard for revenue recognition. It establishes a comprehensive framework for
determining whether, how much and when revenue is recognised. It replaces AASB 111 Construction Contracts
and AASB 118 Revenue. ‘Example Agency’ is currently assessing the impact of this standard and has identified
there could be a potential impact on the timing of the recognition of revenue for user charges. At this stage
‘Example Agency’ is not able to estimate the impact of this new standard on its financial statements. ‘Example
Agency will make a more detailed assessment of the impact over the next 12 months.

AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010)
[AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and
Interpretations 2, 5, 10, 12, 19 & 127] (application date 1 Jan 2018);
This standard makes consequential amendments to a number of standards and interpretations as a result of
the issuing of AASB 9 in December 2010. No material financial impact on ‘Example Agency’ is expected.

AASB 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and
Financial Instruments Part C Financial Instruments [AASB 9 (December 2009), 2009-11, AASB 9 (December
2010) & 2010-7] (application date 1 Jan 2015);
Part C of this Omnibus standard defers the application of AASB 9 to 1 January 2017. The application date of
AASB 9 was subsequently deferred to 1 January 2018 by AASB 2014-1. No material financial impact on
‘Example Agency’ is expected.
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ACT Accounting Policy —AASB Standards issued which are not yet effective
as at 30 June 2015

AASB 2014-1 Amendments to Australian Accounting Standards – Part E Financial Instruments [AASB 1, 3, 4,
5,7,9 (December 2009), 9 (December 2010), 101, 102, 108, 112, 118, 120, 121, 132, 136, 137,139,
Interpretation 2, 5,10, 12, 16, 19, and 107] (application date 1 Jan 2018);
Part E of this standard defers the application of AASB 9 to 1 January 2018. No material financial impact on
‘Example Agency’ is expected.

AASB 2014-3 Amendments Australian Accounting Standards – Accounting for Acquisitions of Interests in
Joint Operations [AASB 1 & 11] (application date 1 Jan 2016);
‘Example Agency’ does not normally acquire interests in Joint Operations. There is no material financial impact
on the application of this standard.

AASB 2014-4 Amendments to Australian Accounting Standards – Clarification of Acceptable Method of
Depreciation and Amortisation [AASB 116 &138] (application date 1 Jan 2016)
This standard introduces a rebuttable presumption that the use of revenue based amortisation for intangible
assets is inappropriate and clarifies that revenue based depreciation for property, plant and equipment cannot
be used. The adoption of this standard has no material financial impact for ‘Example Agency’ as depreciation
and amortisation are not based on the generation of revenue, they are based on the consumption of future
economic benefits.

AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15 [AASB 1, 3, 4, 9
(December 2009) (December 2010), 101, 102, 112, 116, 132, 134, 134, 137, 138, 139, 140, 1023, 1038,
1039, 1049, 1053, 1056, Interpretation 12, 127, 132, 1031, 1038 & 1052] (application date 1 Jan 2017);
This standard makes consequential amendments to a number of standards and interpretations as a result of
the issuing of AASB 15. ‘Example Agency’ is assessing the potential impact of AASB 15.

AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014)
[AASB 1, 2, 3, 4, 5, 7, 13, 101, 102, 108, 110, 112, 120, 121, 123, 128, 132, 133, 136, 137, 139, 1023, 1038,
1049, Interpretation 2, 5, 10, 12, 16, 19 &127] (application date 1 Jan 2018);
This standard makes consequential amendments to a number of standards and interpretations as a result the
issuing of AASB 9 (December 2014). No material financial impact on ‘Example Agency’ is expected.

AASB 2014-8 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) –
Application of AASB 9 (December 2009) and AASB 9 (December 2010) (application date 1 Jan 2015)
This standard makes amendments to AASB 9 (December 2009) and AASB 9 (December 2010) such that for
annual reporting periods beginning on or after 1 January 2015, an entity may apply AASB 9 (December 2009) or
AASB 9 (December 2010). ‘Example Agency’ does not intend to early adopt these standards and there is no
material financial impact.

AASB 2014-9 Amendments to Australian Accounting Standards – Equity Method in Separate Financial
Statements [AASB 1, 127 &128] (application date 1 Jan 2016)
This standard makes amendments to allow entities to use the equity method of accounting for investments in
subsidiaries, joint ventures and associates in their separate financial statements. There is no material financial
impact on ‘Example Agency’.

AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between
an Investor and its Associate or Joint Venture [AASB 10 &128] (application date 1 Jan 2016)
This standard makes amendments to address an inconsistency between the requirements in AASB 10 and
those in AASB 128 (August 2011), in dealing with the sale or contribution of assets between an investor and its
associate or joint venture. There is no material financial impact on ‘Example Agency’.
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as at 30 June 2015

AASB 2015-1 Amendments to Australian Accounting Standards – Annual Improvements to Australian
Accounting Standards 2012-2014 Cycle [AASB 1, 2, 3, 5, 7, 11, 110, 119, 121, 133, 134, 137 & 140]
(application date 1 Jan 2016)
This standard makes amendments to several standards. These are generally not of relevance to ‘Example
Agency’ and there is no material financial impact.

AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB
101 [AASB 7, 101, 134 & 1049] (application date 1 Jan 2016)
These amendments relate to disclosure only and while there is a potential decrease in disclosure there is no
material financial impact on ‘Example Agency’.

AASB 2015-3 Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031
Materiality [AASB 6, 10, 11, 12, 107, 108, 110, 111, 117, 123, 127, 128, 129, 133, 141, 1004, 1039, 1053, and
1054] (application date 1 January 2015)
This standard gives effect to the withdrawal of AASB 1031 Materiality and deletes references to AASB 1031 in
the Australian Accounting Standards. There is no material financial impact on ‘Example Agency’

AASB 2015-5 Amendments to Australian Accounting Standards – Investment Entities: Applying the
Consolidation Exception [AASB 10, AASB 12 & AASB 128] (application date 1 Jan 2016)
This standard makes amendments to confirm that the exemption from preparing consolidated financial
statements set out in AASB 10 is available to a parent entity that is a subsidiary of an investment entity; clarifies
the applicability of AASB 12 to the financial statements of an investment entity; and introduces relief in AASB
128 to permit a non-investment entity investor in an associate or joint venture that is an investment entity to
retain the fair value through profit or loss measurement applied by the associate or joint venture to its
subsidiaries. There is no material financial impact on ‘Example Agency”.

AASB 2015-6 Amendments to Australian Accounting Standards – Extending Related Party Disclosures to
Not-for-Profit Public Sector Entities (Appl. 1 July 2016)
This standard extends the scope of AASB 124 Related Party Transactions to the not-for-profit sector and updates
AASB 124 to include implementation guidance (including illustrative examples) to assist not-for-profit entities to
apply the new requirements. While there is no material financial impact in implementing this standard there
will be increased disclosure required by ‘Example Agency’.
Impact of Accounting Standards Issued but Yet to be Applied
The Model does not contain a complete list of standards issued but not yet applicable. Instead it contains those
standards not yet applicable which will apply to most agencies (as at March 2015). This is because agencies do
not have to include standards that would never apply to them (e.g. AASB 129 Financial Reporting in
Hyperinflationary Economies) in their Note 2(ag) disclosure. As such, most agencies will be able to simply use
the list contained in the model note, however, additional standards may be issued (which are applicable)
between April and the end of June and therefore further standards may need to be included in Note 2(ag). The
Financial Framework Management and Insurance Branch will issue an updated Note 2(ag) disclosure in July to
assist agencies in picking up additional standards issued in their Note 2(ag) disclosure. Agencies need to assess
each new and amended standard issued but not yet applicable and disclose if their adoption is likely to have a
significant impact. The ‘Example Agency’ impacts are indicative and agencies need to make their own
assessment. Further guidance on this will be included in the Accounting Policy on Treatment of AASB Standards
issued which are not yet effective as at 30 June 2015 to be issued in July 2015. Agencies should review this
policy in assessing the impact of standards that have been released but are not yet effective as at 30 June 2015
for disclosure in their 2014-15 financial statements.
For the information of agencies, the additional standards issued but not yet applicable (as at March 2015)
which are not included in the Note 2(ag) disclosures in the Model are:
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ACT Accounting Policy —AASB Standards issued which are not yet effective
as at 30 June 2015

AASB 14 Regulatory Deferral Accounts (application date 1 Jan 2016);

AASB 1056 Superannuation Entities (application date 1 July 2016);

AASB 2014-1 Amendments to Australian Accounting standards Part D Consequential Amendments arising
from AASB 14 Regulatory Deferral Accounts [AASB 1] (application date 1 Jan 2016);

AASB 2014-6 Amendments to Australian Accounting Standards – Agriculture: Bearer Plants [ AASB 101, 116,
117, 123, 136, 140 &141] (application date 1 Jan 2016); and

AASB 2015-4 Amendments to Australian Accounting Standards – Financial Reporting Requirements for
Australian Groups with a Foreign Parent [AASB 127 &128] (application date 1 July 2015)
Note, it is recommended that agencies review the above standards to ensure they do not apply to that agency.
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