The agenda decisions deal with the following:

Scope of AASB 112 Income Taxes

At its December 2011 meeting the AASB considered the issue of whether the proposed MRRT, which passed the Australian House of Representatives on 23 November 2011, would be an income tax within the scope of AASB 112 Income Taxes (equivalent to IAS 12 Income Taxes).

The AASB thinks that existing guidance in Australian Accounting Standards and Interpretations is sufficient to address the issue of whether the proposed Australian MRRT, if legislated in its current form, should be accounted for as an income tax, either by applying the requirements of AASB 112 directly, or by applying the requirements of AASB Interpretation 1003 by analogy.

The agenda decision is available on the AASB website.

Substantive enactment of resource rent tax bills

At its December 2011 meeting, the AASB considered the issue of when it would be appropriate to conclude that substantive enactment of the proposed Minerals Resource Rent Tax Bill 2011 and Petroleum Resource Rent Tax Assessment Amendment Bill 2011 (the ‘resource rent tax Bills’) has occurred. The resource rent tax Bills passed the House of Representatives on 23 November 2011.

The AASB thinks that existing guidance in Australian Accounting Standards and Interpretations is sufficient to address the issue of when substantive enactment has occurred, and the Board does not expect that significantly divergent interpretations would arise in practice.

The agenda decision is available on the AASB website.

At this meeting the Board discussed key issues relating to:

• A draft staff paper on financial reporting implications of a carbon tax - a staff paper being is being developed
• Tentative Agenda Decisions on the proposed resource rent tax bills (dealing with Mineral Resource Rent Tax (MRRT) and extension of the Petroleum Resource Rent Tax (PRRT)) - two agenda decisions were approved, however an agenda decision on whether a deferred tax asset arises was deferred pending consideration of this matter by the IFRS Interpretations Committee
• A review of AASB 1031 Materiality - this is being considered for possible withdrawal, in light of the lack of equivalent guidance under IFRS
• Proposals to be included in an Exposure Draft (ED) on Control in the Not-for-Profit (NFP) Public and Private Sectors
• The basis for progressing its Service Performance Reporting Project.

The AASB also:

• Considered a request for an amendment to AASB 1049 Whole of Government and General Government Sector Financial Reporting relating to defence weapons platforms
• Considered the content of its submissions to the IPSASB on its ED on Long-Term Sustainability of Finances, to the ACNC Implementation Taskforce on its Implementation Design Discussion Paper and to the IASB on its ED on Revenue from Contracts with Customers
• Continued to monitor and form views on other IASB projects: Leases and Financial Instruments
• Made decisions relating to RDR – Tier 2 Amendments to Standards
• Received reports relating to the IPSASB’s December 2011 meeting and the IFRS Interpretations Committee.

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