Explanatory Statement
Accounting Standard AASB 2010-3 Amendments to Australian Accounting Standards arising from the Annual Improvements Project
June 2010
EXPLANATORY STATEMENT
Reasons for Issuing AASB 2010-3
AASB 2010-3 makes amendments to the following Australian Accounting Standards:
- AASB 3 Business Combinations
- AASB 7 Financial Instruments: Disclosures
- AASB 121 The Effects of Changes in Foreign Exchange Rates
- AASB 128 Investments in Associates
- AASB 131 Interests in Joint Ventures
- AASB 132 Financial Instruments: Presentation
- AASB 139 Financial Instruments: Recognition and Measurement.
These amendments are a consequence of the annual improvements project.
These amendments result from proposals that were included in Exposure Draft ED 188 Improvements to IFRSs published in September 2009 and follow the issuance of the IASB Standard Improvements to IFRSs in May 2010.
Main Features of AASB 2010-3
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, except that the amendments to AASB 3 may be applied only to annual reporting periods beginning on or after 30 June 2007 but before 1 July 2010.
Main Requirements
The subjects of the principal amendments to the Standards are set out below:
Australian Accounting Standard | Subject of amendment |
AASB 3 Business Combinations | Measurement of non-controlling interests |
Unreplaced and voluntarily replaced share-based payment awards | |
AASB 3 Business Combinations AASB 7 Financial Instruments: Disclosures AASB 132 Financial Instruments: Presentation AASB 139 Financial Instruments: Recognition and Measurement | Transition requirements for contingent consideration from a business combination that occurred before the effective date of the revised AASB 3 (2008) |
AASB 121 The Effects of Changes in Foreign Exchange Rates AASB 128 Investments in Associates AASB 131 Interests in Joint Ventures | Transition requirements for amendments arising as a result of AASB 127 Consolidated and Separate Financial Statements |
Consultation Prior to Issuing AASB 2010-3
The AASB issued Exposure Draft ED 188 Improvements to IFRSs, the Australian equivalent to the IASB Exposure Draft ED/2009/11 Improvements to IFRSs, in September 2009.
One submission was received in respect of the proposals in the ED and there was support for adopting the proposed IASB revision in Australian Accounting Standards.
A Regulatory Impact Statement has not been prepared in connection with the issue of this Standard 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.