Accounting standards effective for 31 December year ends

AASB Update

This article provides a recap on the wave of standards effective for 31 December year ends / half years and what effect the new standards will have.

The new wave of standards which has been discussed for several years has now arrived so there will be significant changes to many financial statements for half-years / years ending 31 December 2018.
Entities will need to include disclosures relating to transition including:

• Third balance sheet (where the comparatives have been changed)
• Change in accounting policy note
• Two sets of accounting policies (where comparatives have not been changed)
• Any other specific transition disclosures from the relevant standard.

The complete list of standards which are effective for 31 December 2018 is shown in the table below and should be considered by all entities to ensure that the impact is understood:

All entities

AASB 9 (and associated amending standards)	Financial Instruments
AASB 2016 -5	Amendments to Australian Accounting Standards – Classification and Measurement of Share-based Payment Transactions
AASB 2016 -6	Amendments to Australian Accounting Standards – Applying AASB 9 Financial Instruments with AASB 4 Insurance Contracts
AASB 2017 – 3	Amendments to Australian Accounting Standards – Clarifications to AASB 4

For Profit Entities only

AASB 15 (and associated amending standards)	Revenue from Contracts with Customers
AASB 2017 – 1	Amendments to Australian Accounting Standards – Transfers of Investment Property, Annual Improvements 2014 – 2016 Cycle and Other Amendments [AASB 1, AASB 128, AASB 140]
Interpretation 22	Foreign Currency Transactions and Advance Consideration

Don’t forget that AASB 16 will be effective from 1 January 2019 as well as the new revenue standards for NFP entities.
If you have not completed your assessment of the impact of any of the standards above, then please speak to your Bentleys contact.