AASB 2017-4 Amendments to Australian Accounting Standards – Uncertainty over Income Tax Treatments (Cth)

AASB Standard

AASB 2017-4

July 2017

Amendments to Australian Accounting Standards – Uncertainty over Income Tax Treatments

[AASB 1]

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Contents

PREFACE

ACCOUNTING STANDARD

AASB 2017-4 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS - UNCERTAINTY OVER INCOME TAX TREATMENTS

from page

OBJECTIVE   5

APPLICATION   5

AMENDMENTS TO AASB 1  5

COMMENCEMENT OF THE LEGISLATIVE INSTRUMENT   5

Australian Accounting Standard AASB 2017-4 Amendments to Australian Accounting Standards – Uncertainty over Income Tax Treatments is set out in page 5. All the paragraphs have equal authority.

Preface

Standards amended by AASB 2017-4

This Standard makes amendments to AASB 1 First-time Adoption of Australian Accounting Standards (July 2015, as amended).

Main features of this Standard

Main requirements

This standard amends AASB 1 to add paragraphs arising from AASB Interpretation 23 Uncertainty over Income Tax Treatments.

Application date

This Standard applies to annual periods beginning on or after 1 January 2019.  Earlier application is permitted.

Accounting Standard AASB 2017-4

The Australian Accounting Standards Board makes Accounting Standard AASB 2017-4 Amendments to Australian Accounting Standards - Uncertainty over Income Tax Treatments under section 334 of the Corporations Act 2001.

Kris Peach
Dated 31 July 2017	Chair – AASB

Accounting Standard AASB 2017-4

Amendments to Australian Accounting Standards - Uncertainty over Income Tax Treatments

Objective

This Standard amends AASB 1 First-time Adoption of Australian Accounting Standards as a consequence of the issuance of IFRIC Interpretation 23 Uncertainty over Income Tax Treatments by the International Accounting Standards Board in June 2017.

Application

The amendments set out in this Standard apply to entities and financial statements in accordance with the application of the other Standards set out in AASB 1057 Application of Australian Accounting Standards (as amended).

This Standard applies to annual periods beginning on or after 1 January 2019. Earlier application is permitted.

Amendments to AASB 1

Paragraph 39AF is added.

39AF       AASB 2017-4 Amendments to Australian Accounting Standards - Uncertainty over Income Tax Treatments added paragraph E8. An entity shall apply that amendment when it applies AASB Interpretation 23 Uncertainty over Income Tax Treatments, as identified in AASB 1048 Interpretation of Standards.

In Appendix E, a heading and paragraph E8 are added.

Uncertainty over income tax treatments

E8            A first-time adopter whose date of transition to Australian Accounting Standards is before 1 July 2017 may elect not to reflect the application of AASB Interpretation 23 Uncertainty over Income Tax Treatments, as identified in AASB 1048 Interpretation of Standards, in comparative information in its first IFRS financial statements. An entity that makes that election shall recognise the cumulative effect of applying Interpretation 23 as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at the beginning of its first IFRS reporting period.

Commencement of the legislative instrument

For legal purposes, this legislative instrument commences on 31 December 2018.