Explanatory Statement
Accounting Standard AASB 2008-12 Amendments to Australian Accounting Standards – Reclassification of Financial Assets – Effective Date and Transition
December 2008
EXPLANATORY STATEMENT
Standards Amended by AASB 2008-12
This Standard makes amendments to the following Australian Accounting Standards:
- AASB 7 Financial Instruments: Disclosures;
- AASB 139 Financial Instruments: Recognition and Measurement; and
- AASB 2008-10 Amendments to Australian Accounting Standards – Reclassification of Financial Assets.
These amendments arise from the issuance by the IASB of Amendments to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 7 Financial Instruments: Disclosures – Reclassification of Financial Assets – Effective Date and Transition.
Main Features of this Standard
Application Date
This Standard is applicable on or after 1 July 2008. Early adoption of this Standard is not permitted.
Main Requirement
This Standard clarifies the effective date of the amendments made to AASB 139 and AASB 7 as a result of the issuance of AASB 2008-10 in November 2008.
Consultation Prior to Issuing AASB 2008-12
The AASB issued AASB 2008-12 Amendments to Australian Accounting Standards – Reclassification of Financial Assets – Effective Date and Transition in December 2008. The amendments were issued by the IASB without due process, in order to urgently clarify the effective date and transition requirements of the amendments made to IAS 39 and IFRS 7 in October 2008. The AASB decided at its October 2008 meeting that it could rapidly respond to the IASB amended IAS 39, to ensure that Australian constituents would have available, on a timely basis, the same treatments as constituents in other jurisdictions applying IFRSs.
A Regulation Impact Statement has not been prepared in connection with the issue of AASB 2008-12 as the amendments made do not have a substantial direct or indirect impact on business or competition, are of a minor or machinery nature or clarify existing requirements.