Australia rescinds amendments made to IFRSs
02 May 2007
The Australian Accounting Standards Board has approved an 'Amending Standard' that would, in effect, undo the changes that the AASB had made to IFRSs when it initially adopted them as Australian Equivalents of IFRSs.
The changes are based on the proposals in ED 151 Australian Additions to, and Deletions from, IFRSs. The Amending Standard also incorporates a number of editorial corrections and amendments made by the IASB to IFRSs. The Amending Standard (which is not yet publicly available) is applicable from 1 July 2007 but may be adopted earlier. In all, 34 Australian Standards will be affected by the Amending Standard. Significant changes implemented by the Amending Standard include:
- permitting the 'indirect method' of presenting cash flows statements
- revisions to the definition of 'separate financial statements' and the requirement to prepare consolidated financial statements
- introduction of an option to account for jointly controlled entities using proportionate consolidation
- new options in accounting for government grants
- elimination of a large number of disclosures across many Standards.
