Explanatory Statement
Amending Standard AASB 2010-10 Further Amendments to Australian Accounting Standards – Removal of Fixed Dates for First-time Adopters
December 2010
EXPLANATORY STATEMENT
Reasons for Issuing AASB 2010-10
In December 2010, the International Accounting Standards Board (IASB) issued Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters (Amendments to IFRS 1) and thereby replaced references to a fixed date of ‘1 January 2004’ with ‘the date of transition to IFRSs’.
AASB 2010-10 Further Amendments to Australian Accounting Standards – Removal of Fixed Dates for First-time Adopters, which incorporates relevant parts of the IASB’s Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters (Amendments to IFRS 1), was made by the AASB in December 2010 to enable Australian reporting entities to continue to be compliant with International Financial Reporting Standards.
Main Features of AASB 2010-10
AASB 2010-10 makes amendments to AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 and AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010).
The amendments ultimately affect AASB 1 First-time Adoption of Australian Accounting Standards and provide relief for first-time adopters of Australian Accounting Standards from having to reconstruct transactions that occurred before their date of transition to Australian Accounting Standards.
The amendments to AASB 2009-11 will only affect early adopters of AASB 2009-11 (and AASB 9 Financial Instruments as issued in December 2009) as it has been superseded by AASB 2010-7 for annual reporting periods beginning on or after 1 January 2013.
Application Date
The Amending Standard AASB 2010-10 is applicable to annual reporting periods beginning on or after 1 January 2013 with early adoption permitted as set out in AASB 2009-11 and AASB 2010-7.
Consultation Prior to Issuing this Standard
The AASB issued Exposure Draft ED 203 Removal of Fixed Dates for First-time Adopters in September 2010. ED 203 reproduced the proposals included in the IASB’s Exposure Draft ED/2010/10 Removal of Fixed Dates for First-time Adopters (September 2010) without amendment.
The AASB received two submissions from Australian constituents on ED 203. The submissions received were generally supportive of the proposals in the ED.
A Regulation Impact Statement has not been prepared in connection with the issuance of AASB 2010-10 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.