Guidance on applying recent amendments to A-IFRSs

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10 May 2007

The Australian Accounting Standards Board has approved Amending Standard AASB 2007-4 Amendments to Australian Accounting Standards arising from ED 151 and Other Amendments (see our news story of 2 May 2007).

AASB 2007-4, in effect, undoes most of the changes that the AASB had made to IFRSs when it initially adopted them as Australian Equivalents of IFRSs (A-IFRSs), bringing A-IFRSs much closer to their IFRS equivalents:
  • In all, 34 different Standards are affected by AASB 2007-4.
  • New accounting policy options are introduced.
  • A large number (but not all) of the Australian-specific disclosures and requirements have been eliminated.
  • AASB 2007-4 applies to annual reporting periods beginning on or after 1 July 2007, but may be early adopted so long as all its requirements are adopted at the same time.
Deloitte (Australia) has published Accounting Alert 2007/09  (PDF 122k) to provide guidance on the applying AASB 2007-4. Appendices to Alert 2007/09 include:
  • List of all AASB Standards affected by AASB 2007-4.
  • A detailed summary of all the non-editorial changes and their impacts on the various Standards, providing a checklist for people to utilise in their consideration and implementation of AASB 2007-4.
  • Examples of disclosures if applying AASB 2007-4 results in a change in accounting policy.
Adoption of a new accounting policy as a result of AASB 2007-4 is a voluntary change in accounting policy under AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors (equivalent of IAS 8). AASB 108 only permits a voluntary change in accounting policy if the entity can demonstrate that change results in the financial report providing reliable and more relevant information on the entity's financial position, performance and cash flows. AASB 2007-4 can be downloaded from The AASB's Website in Word and PDF formats.

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