2014-2016 annual improvements – changes to AASB 12 and AASB 128

In December 2016, the International Accounting Standards Board (IASB) approved changes to the following standards as a result of its 2014-2016 annual improvements project.

Standard

Amendments

 

AASB 12 Disclosure of Interests in Other Entities

 

 

Changes included in AASB 2017-2 Amendments to Australian Accounting Standards – Further Annual Improvements 2014-2016 Cycle

AASB 5 Non-current Assets Held for Sale and Discontinued Operations, paragraph 5B, requires that disclosures in other standards do not apply to non-current assets (or disposal groups) held for sale unless those other standards specify disclosures in respect of these non-current assets (or disposal groups) held for sale.

AASB 12, paragraph B17 states that an entity is not required to provide the summarised information from AASB 12, paragraphs B10-B16 for subsidiaries, joint ventures and associates classified as held for sale under AASB 5.

These amendments clarify that the Board did not intend to exempt all disclosures in AASB 12, and that it is only the disclosures set out in AASB 12, paragraphs B10 – 16 that do not need to be provided for entities within the scope of AASB 5.

Retrospective restatement

Effective for annual periods beginning on or after 1 January 2017.  No transitional relief is available.

 

AASB 128 Investments in Associates and Joint Ventures

Changes included in AASB 2017-1 Amendments to Australian Accounting Standards – Transfers of Investment Property, Annual Improvements 2014-2016 Cycle and Other Amendments

Clarifies that:

  1. The election in AASB 128, paragraph 18, by venture capital organisations, mutual funds, unit trusts and similar entities (including investment-linked insurance funds) to choose to measure its investments in associates and joint ventures at fair value or using the equity method, is available on an investment by investment basis at initial recognition, and
  2. The election in AASB 128, paragraph 36A, by an entity that is not itself an investment entity to retain the fair value measurement applied by its associates and joint ventures (that are investment entities) is also available on an investment by investment basis.

Retrospective restatement

For-profit entities - Effective for annual periods beginning on or after 1 January 2018.

Not-profit entities - Effective for annual periods beginning on or after 1 January 2019. 

No transitional relief is available. These amendments can be early adopted.