October 2013 AASB meeting highlights

The AASB met in Melbourne on 23-24 October 2013. Topics discussed included:

• An Amending Standard is close to be finalised that would add implementation guidance to AASB 10 Consolidated Financial Statements and AASB 12 Disclosure of Interests in Other Entities to assist not-for-profit entities in applying those standards. A finalised standard is expected imminently
• The Board agreed to withdraw AASB 1031 Materiality notwithstanding the IASB's materiality project, and will consider at its December 2013 meeting how to effect the withdrawal
• The AASB discussed various IASB projects including the disclosure initiative, bearer plants, insurance contracts, revenue recognition, conceptual framework and financial instruments
• Updates were received on the activities of the IFRS Interpretations Committee and International Public Sector Accounting Standards Board (IPSASB)
• The possible reinstatement of paragraph B6 of IFRS 7 Financial Instruments: Disclosures in the Australian context was considered and rejected - this paragraph permits certain disclosures to be either given in the financial statements or incorporated by cross-reference from other statements and reports made available at the same time as the financial statements.

Click for AASB Action Alert (link to AASB website).

New compiled standards

A third batch of new compiled versions of Standards and Interpretations that apply to annual reporting periods beginning on or after 1 January 2013 has been published on the AASB website, covering a number of standards from AASB 119 Employee Benefits through to AASB 137 Provisions, Contingent Liabilities and Contingent Assets, with separate versions for for-profit and not-for-profit entities in some cases.

New pronouncements

During October, the AASB released the following pronouncements (links are to the documents on the AASB website):

• AASB 2013-6 Amendments to AASB 136 arising from Reduced Disclosure Requirements (applies to annual reporting periods beginning on or after 1 January 2014)
• AASB 2013-7 Amendments to AASB 1038 arising from AASB 10 in relation to Consolidation and Interests of Policyholders (applies to annual reporting periods beginning on or after 1 January 2014)

AASB work programme

The AASB has also updated its work plan. The following are expected by the end of calendar 2013:

• Finalisation of standards on related parties and control (as noted above) in the not-for-profit sector by the end of 2013
• Issue an exposure draft on borrowing costs in the not-for-profit sector
• Withdraw AASB 1031 Materiality (as noted above)
• Issue Australian equivalents to IASB pronouncements on hedge accounting, revenue recognition, annual improvements and various narrow-scope projects, as well as issuing local equivalents of any exposure drafts and discussion papers issued by the IASB.

In addition, the AASB expects to finalise its revised standard on superannuation entities in the first quarter of 2014 and issue an exposure draft on grantor accounting for service concession arrangements based on IPSAS 32 Service Concession Arrangements: Grantor.

Full details of the AASB work plan, dated as of 25 October 2013, are available on the AASB website.