Explanatory Statement
Accounting Standard AASB 2012-9
Amendment to AASB 1048 arising from the Withdrawal of Australian Interpretation 1039
December 2012
EXPLANATORY STATEMENT
Main Features of the Standard
AASB 2012-9 Amendment to AASB 1048 arising from the Withdrawal of Australian Interpretation 1039 makes an amendment to Australian Accounting Standard AASB 1048 Interpretation of Standards.
The amendment arises from the withdrawal of Australian Interpretation 1039 Substantive Enactment of Major Tax Bills in Australia.
Australian Interpretation 1039 is withdrawn on the basis that an Australian Interpretation is not necessary, past or current diversity in practice in Australia in relation to this matter is not evident and the issue of whether a tax Bill is substantively enacted is not unique to Australia. The withdrawal is consistent with the AASB’s policy of International Financial Reporting Standard (IFRS) adoption and only issuing a domestic Interpretation of an IFRS adopted for use in Australia in rare and exceptional circumstances, and then only after exploring with the IFRS Interpretations Committee whether that Committee should deal with the matter.
Application Date
The Standard applies to annual reporting periods beginning on or after 1 January 2013, and may be applied to annual reporting periods beginning on or after 1 January 2005 but before 1 January 2013.
Consultation Prior to Issuing the Standard
The AASB issued Exposure Draft ED 226 Withdrawal of Australian Interpretation 1039 Substantive Enactment of Major Tax Bills in Australia, in August 2012.
Eight submissions were received by the AASB in respect of the proposals in ED 226, which were considered in finalising AASB 2012-9.
A Regulation Impact Statement has not been prepared in connection with the issue of the Standard as the amendment made does not have a substantial direct or indirect impact on business or competition, and is not expected to result in a change or diversity in practice.
Statement of Compatibility with Human Rights
AASB 2012-9 is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
The Standard is issued by the AASB in furtherance of the objective of facilitating the Australian economy. It does not diminish or limit any of the applicable human rights or freedoms, and thus does not raise any human rights issues.