Explanatory Statement

Accounting Standard AASB 2009-13 Amendments to Australian Accounting Standards arising from Interpretation 19

[AASB 1]

December 2009

EXPLANATORY STATEMENT

Standard Amended by AASB 2009-13

This Standard makes amendments to Australian Accounting Standard AASB 1 First-time Adoption of Australian Accounting Standards.

These amendments arise from the issuance of IFRIC Interpretation 19 Extinguishing Financial Liabilities with Equity Instruments by the International Accounting Standards Board in November 2009.

Main Features of this Standard

Application Date

This Standard is applicable to annual reporting periods beginning on or after 1 July 2010.  Early adoption is permitted for annual reporting periods beginning on or after 1 January 2005 but before 1 July 2010.

Main Requirements

The amendments allow first-time adopters of Australian Accounting Standards to use the transition paragraphs in AASB Interpretation 19 Extinguishing Financial Liabilities with Equity Instruments.

Consultation Prior to Issuing AASB 2009-13

The AASB issued AASB 2009-13 after a due process, which included the release for comment of IFRIC Draft Interpretation D25 Extinguishing Financial Liabilities with Equity Instruments in August 2009.  The AASB received one submission on D25 and it was generally supportive of the proposals in the Draft.

A Regulation Impact Statement has not been prepared in connection with the issue of AASB 2009-13 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.