Australian accounting standards amendments for 31 December 2017

Due to the ‘Big 3’ accounting standards which are on their way, there are only a small number of amendments to standards which are effective for the first time for 31 December 2017 reporters.

 AASB 2016-1 Amendments to Australian Accounting Standards – Recognition of Deferred Tax Assets for Unrealised Losses [AASB 112]

This standard clarifies the requirements for recognition of deferred tax assets for unrealised losses on debt instruments measured at fair value.

AASB 2016-2 Disclosure Initiative – Amendments to AASB 107

This standard requires additional disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash.

This disclosure is required for special purpose financial statements as it is included in AASB 107, however, Tier 2 Reduced Disclosure Financial Statements are not required to disclose.

Click here to view an example disclosure

Note: Comparatives are not required in the first year of adoption

AASB 2016-4 Amendments to Australian Accounting Standards – Recoverable Amount of Non-Cash Generating Specialised Assets of Not-for-Profit Entities

This standard amends AASB 136 Impairment of Assets to:

  • Remove references to depreciated replacement cost as a measure of value in use for not-for-profit entities, and
  • Clarify that the recoverable amount of primarily non-cash-generating assets of not-for-profit entities, which are typically specialised in nature and held for continuing use is expected to be materially the same as fair value under AASB 13 Fair Value Measurement.

AASB 2017-2 Amendments to Australian Accounting Standards – Further Annual Improvements 2014 – 2016 Cycle [AASB 12]

This standard clarifies the scope of AASB 12 by specifying that the disclosure requirements apply to an entity’s interests in other entities that are classified as held for sale, held for distribution to owners in their capacity as owners or discontinued operations in accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations.

Need help with financial reporting?

Our expert Audit and Assurance team have specialist experience in financial reporting.