Highlights

• Consolidation of stapled entities - the AASB received a report on recent Australian Securities and Investments Commission (ASIC) Class Order [CO 13/1050] Financial reporting by stapled entities, which permits the presentation of combined or consolidated financial statements covering all of the entities in a stapled group. The Class Order responds to potential issues arising on applying AASB 10 Consolidated Financial Statements to stapled entities and the AASB, after further liaison and research, may write to the IFRS Interpretations Committee on broader issue of the interaction of the requirements in IFRS 3 Business Combinations to identify an acquirer with the requirements in IFRS 10 Consolidated Financial Statements to prepare consolidated financial statements when control exists
• Australian guidance on materiality - constituent feedback on the AASB's proposals to withdraw AASB 1031 Materiality will be considered at a future meeting, and also take into account the IASB's proposed project on materiality
• Consolidation guidance for not-for-profit entities - a pre-ballot draft to be prepared, with sweep issues to be considered at the October meeting
• Consolidation and interest of policyholders - the proposals to delete paragraphs in AASB 1038 Life Insurance Contracts relating to determining the interests to be included in consolidation financial statements will be finalised out of session
• Framework - the AASB discussed how to incorporate the completed chapters of the IASB's Conceptual Framework for Financial Reporting, deciding as an interim approach to supersede the relevant paragraphs with Chapter 1 and Chapter 3 of the IASB's Framework

Other topics discussed

• Emissions trading schemes - further consideration of issues
• AASB comments letters - consideration of submissions to the IASB on ED/2013/6 Leases and ED/2013/4 Insurance Contracts, both will note overall support but raise a number of concerns
• Other IASB activities - consideration of the IASB's Discussion Forum – Financial Reporting Disclosure Feedback Statement, Conceptual Framework project, post-implementation review of IFRS 8 Operating Segments and financial instruments project, and an IFRS Interpretations Committee update
• AASB strategic plan

The next meeting of the AASB is currently scheduled for 23-24 October 2013. Click for AASB Action Alert (link to AASB website).