Changes required

Expected impact



AASB 2014-1

AASB 14 Regulatory Deferral Accounts


AASB 2014-1 Amendments to Australian Accounting Standards

Permits first-time adopters of Australian Accounting Standards who conduct rate-regulated activities to continue to account for amounts related to rate regulation in accordance with their previous GAAP.

Little to no impact expected for Australian entities.

AASB 1057


AASB 2015-9

AASB 1057 Application of Australian Accounting Standards


AASB 2015-9 Amendments to Australian Accounting Standards- Scope and Application paragraphs

There are no changes to accounting policies covered by this standard, however AASB 1057 now contains all of the application paragraphs for each accounting standard and interpretation, except for where the IASB have included specific application paragraphs in their standards.

No changes to reported financial position, performance or cash flows.

AASB 2014- 3

AASB 2014- 3 Amendments to Australian Accounting Standards- Accounting for Acquisitions of Interests in Joint Operations (AASB 1 and AASB11)


If a joint operation is acquired during the reporting period, then this standard clarifies the accounting for the acquisition to be in accordance with AASB 3, i.e. assets and liabilities acquired to be measured at fair value.

Provides clarity on the accounting treatment if a joint operation is acquired during the period.

AASB 2014-4

AASB 2014-4 Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of Depreciation and Amortisation

This standard: a. establish the principle that the basis of depreciation and amortisation is the expected pattern of consumption of the future economic benefits of an asset; b. clarifies that revenue-based methods to calculate the depreciation of an asset is not appropriate and c. clarifies that revenue is generally presumed to be an inappropriate basis for measuring the consumption of the economic benefits embodied in an intangible asset.

Entities should confirm the basis used for depreciation and amortisation – little to no change unless an entity is using a revenue-based method for determining depreciation / amortisation.

AASB 2014-6

AASB 2014-6 Amendments to AASB 116 and AASB 141 for bearer plants

Bearer plants are plants which bear produce on a regular basis, for example grape vines, palm oil trees, fruit trees – previously they have been included in the scope of AASB 141 Agriculture and held at fair value.
This standard moves bearer plants into the scope of AASB 116 which provides a measurement choice for the bearer plants at cost or fair value.
Note the agriculture produce, eg. the grapes, fruit etc remain within the scope of the Agriculture standard.

Entities who have bearer plants are no longer required to fair value them if they choose to account for them using the cost model under AASB 116. If this option is chosen then there may be significant changes to the reported position and performance.
No impact for entities who do not hold bearer plants or those entities who will continue to carry bearer plants at fair value.

AASB 2014-9

AASB 2014-9 Equity method in separate financial statements (Amendments to AASB 127)

This permits entities to use the equity method to account for its interest in subsidiaries, joint venture and associates in separate financial statements.

If an entity chooses to measure its interests in subsidiaries, joint ventures or associates using the equity method rather than the current options of cost or fair value in its separate financial statements then there will be a change in the reported financial position and performance. Note: even if separate financial statements are not presented, this will impact the parent entity note in a set of consolidated accounts if the option is taken.

If entities do not choose to use the equity method then there is no change to the reporting of subsidiaries, joint ventures or associates in the separate financial statements.

AASB 2015-1

AASB 2015 – 1 Annual improvements (2012 – 2014 cycle)

The following amendments / clarifications are made:

  •  AASB 5 – reclassification from held for sale to held for distribution to owners or from held for distribution to owners to held for sale is considered to the continuation of the original plan of disposal;
  •  AASB 7 – adds basis of conclusion to clarify disclosure requirements for transferred financial assets and offsetting arrangements;
  •  AASB 119 – confirms that high quality corporate bonds or national government bonds used to determine discount rates must be in the same currency as the benefits paid to the employee;
  •  AASB 134 – clarifies information about cross references in the interim financial report.

Little to no impact expected for most entities.

AASB 2015-2

AASB 2015-2 Disclosure Initiative – Amendment to AASB 101

There are no changes to accounting policies covered by this standard, however this amendment provide clarification regarding the disclosure requirements in AASB 101.

Some of the key points of this standard:

  • The reference to a summary of significant accounting policies has been removed – there is still a requirement to disclosure significant accounting policies but the removal of the word “summary” is the motivation behind much of the restructuring that we are seeing in many large entity financial statements where they are disbursing the accounting policies throughout the notes, i.e. revenue accounting policy is included in the revenue note.
  • The removal of the word ‘minimum’ line items in relation to items needed on the face of the primary statements
  • To confirm materiality as a basis for preparing financial statements and encourage entities to apply materiality throughout.
  • Includes examples of note grouping which is different from the traditional approach, i.e:
  • Giving prominence to areas of its activities which the entities considers to be most relevant to understanding financial performance and financial position
  • Grouping information about items measured similarly such as assets measured at fair value
  • Following the order of the line items in the statement of profit or loss and other comprehensive income and the statement of financial position.

No impact on reported financial position or performance is expected, however some entities may use this clarification to streamline or simplify some of the notes in the financial statements.

AASB 2015-5

AASB 2015-5 Investment Entities: Applying the Consolidation Exception


  • Clarity and guidance for investment entities using the consolidation exemption within AASB 10 Consolidated Financial Statements and
  • Introduces relief to allow a non-investment entity investor in an investment entity to retain the investment entity’s measurement basis of fair value for its subsidiaries.

Some impact for investment entities or groups which include an investment entity.

No impact expected for other entities.

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