Comments sought on exposure drafts

At BDO, we provide comments locally to the Australian Accounting Standards Board (AASB) and internationally to the International Accounting Standards Board (IASB). We welcome any client comments on exposure drafts that are currently available for comment. If you would like to provide any comments please contact Aletta Boshoff at [email protected].



Comments due to AASB by

Comments due to IASB by

ED 289 Annual Improvements to Australian Accounting Standards 2018-2020

Proposes amendments to the following standards:

  • IFRS 1 First-time Adoption of International Financial Reporting Standards – to permit transition exemptions for measuring cumulative exchange differences when a subsidiary becomes a first-time adopter later than its parent
  • IFRS 9 Financial Instruments – When determining whether a modified financial liability is to be derecognised, ‘fees’ to be included in the 10% test are only those fees paid or received between the borrower and the lender (including on their behalf)
  • IFRS 16 Leases Illustrative Example 13 – Removes the illustration of payments from the lessor relating to leasehold improvements
  • IAS 41 Agriculture – To remove the requirement in paragraph 22 to exclude cash flows from taxation when measuring fair value so that cash flows used can align if a post-tax discount rate is used.

31 July 2019

20 August 2019

ED 290 Reference to the Conceptual Framework

Proposed amendments to AASB 3

Proposes to:

  • Update the old conceptual framework reference to the new Conceptual Framework for Financial Reporting (issued March 2018)
  • Add an exception to the recognition principle for liabilities and contingent liabilities within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets and IFRIC 21 Levies
  • Make the IFRS 3 requirements for contingent assets more explicit.

20 August 2019

27 September 2019

ED 291 Not-for-Profit Entity Definition and Guidance

Proposes to:

  • Retain the term ‘not-for-profit entity’ (NFP) but replace the definition currently included in AASB 102 Inventories, AASB 116 Property, Plant and Equipment and AASB 136 Impairment of Assets with the definition of ‘public benefit entity’ as included in XRB A1 Appendix A (with some amendments)
  • Develop implementation guidance, and
  • Remove the definition of NFP from AASB 102, AASB 116 and AASB 136 and include the revised definition and guidance in a separate standard, AASB 1057 Application of Australian Accounting Standards.

9 September 2019


ED 292 Amendments to AASB 17

Proposes targeted amendments to AASB 17 Insurance Contracts relating to the following topics:

  • Scope exclusions - credit card contracts and loan contracts that meet the definition of an insurance contract
  • Expected recovery of insurance acquisition cash flows
  • Contractual service margin attributable to investment-return service and investment-related service
  • Reinsurance contracts held - recovery of losses on underlying insurance contracts
  • Presentation in the statement of financial position
  • Applicability of the risk mitigation option
  • Transition modifications and reliefs, and
  • Minor amendments.

Also proposes to defer the effective date of AASB 17 by one year to annual reporting periods beginning on or after 1 January 2022, and to extend the AASB 9 Financial Instruments temporary exemption in AASB 4 Insurance Contracts by one year.

30 August 2019

25 September 2019

ED 293 Amendments to Australian Accounting Standards – Disclosure in Special Purpose Financial Statements of Compliance with Recognition and Measurement Requirements

Proposes requiring entities preparing special purpose financial statements, and complying with AASB 1054, to disclose:

  • The basis on which the decision to prepare special purpose financial statements was made
  • Whether the entity has consolidated and equity accounted, if appropriate, investments in subsidiaries, joint ventures and associates, and
  • An explicit statement whether or not the accounting policies applied comply with all recognition and measurement requirements in Australian Accounting Standards.

19 August 2019