Earlier application of the amendments to individual Standards is permitted. An entity shall apply these amendments for annual periods beginning on or after 1 January 2020. An entity shall apply these amendments retrospectively to those hedging relationships that existed at the beginning of the reporting period in which an entity first applies these amendments or were designated thereafter, and to the gain or loss recognised in other comprehensive income that existed at the beginning of the reporting period in which an entity first applies these amendments. The AASB did not make a submission to the IASB on ED/2018/2. Timi Tullis, AASB. Reproduction outside Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use only. ED 280 incorporated IASB Exposure Draft ED/2017/4 Property, Plant and Equipment – Proceeds before Intended Use. AASB 1 to simplify the application of AASB 1 by a subsidiary that becomes a first-time adopter after its parent in relation to the measurement of cumulative translation differences; AASB 9 to clarify the fees an entity includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability; AASB 116 to require an entity to recognise the sales proceeds from selling items produced while preparing property, plant and equipment for its intended use and the related cost in profit or loss, instead of deducting the amounts received from the cost of the asset; AASB 137 to specify the costs that an entity includes when assessing whether a contract will be loss-making; and. 6.8.12      When designating a group of items as the hedged item, or a combination of financial instruments as the hedging instrument, an entity shall prospectively cease applying paragraphs 6.8.4–6.8.6 to an individual item or financial instrument in accordance with paragraphs 6.8.9, 6.8.10, or 6.8.11, as relevant, when the uncertainty arising from interest rate benchmark reform is no longer present with respect to the hedged risk and/or the timing and the amount of the interest rate benchmark-based cash flows of that item or financial instrument. New subheadings are added before paragraphs 102D, 102E, 102F, 102H and 102J. These amendments arise from the issuance of International Financial Reporting Standard, This Standard applies to annual reporting periods, The Australian Accounting Standards Board makes Accounting Standard AASB, This Standard amends Australian Accounting Standards AASB 7, (Amendments to IFRS 9, IAS 39 and IFRS 7), by the International Accounting Standards Board in, The amendments set out in this Standard apply to entities and financial statements in accordance with the application of AASB 7, AASB 9 and AASB 139 set out in AASB 1057, This Standard may be applied to annual reporting periods. The report, 'Reforming Major Interest Rate Benchmarks', is available at http://www.fsb.org/wp-content/uploads/r_140722.pdf. Amendment to AASB 139 18 . Amendments to AASB 110 12 . 102H       Unless paragraph 102I applies, for a hedge of a non-contractually specified benchmark portion of interest rate risk, an entity shall apply the requirement in paragraphs 81 and AG99F—that the designated portion shall be separately identifiable—only at the inception of the hedging relationship. 6.8.3        Paragraphs 6.8.4–6.8.12 provide exceptions only to the requirements specified in these paragraphs. The IASB analysed the feedback it received on the proposed amendments and decided to finalise the amendments, including narrowing the reference to allocated costs; (c)          ED 289 Annual Improvements to Australian Accounting Standards 2018–2020 was issued in May 2019, for comment by 31 July 2019. Three Australian stakeholders made a submission directly to the IASB on ED/2017/4, two of which were also submitted to the AASB. Optional concentration test The amendments include an election to use a concentration test. The IASB analysed the feedback it received on the proposed amendments and decided to finalise the amendments, addressing the suggestions raised by Australian respondents; (b)          ED 287 Onerous Contracts – Cost of Fulfilling a Contract was issued in January 2019, for comment by 22 March 2019. Prepared in accordance with Part 3 of the 6.8.7        Unless paragraph 6.8.8 applies, for a hedge of a non-contractually specified benchmark component of interest rate risk, an entity shall apply the requirement in paragraphs 6.3.7(a) and B6.3.8—that the risk component shall be separately identifiable—only at the inception of the hedging relationship. Amendments to AASB 133 16 . Ellipses (…) are used to help provide the context within which amendments are made and also to indicate text that is not amended. The AASB considered and adopted the amendments made by the IASB in finalising AASB 2020-3. The AASB Exposure Drafts were as follows: (a)          ED 280 Property, Plant and Equipment – Proceeds before Intended Use was issued in June 2017, for comment by 18 September 2017. 6.8.5        For the purpose of applying the requirement in paragraph 6.5.12 in order to determine whether the hedged future cash flows are expected to occur, an entity shall assume that the interest rate benchmark on which the hedged cash flows (contractually or non-contractually specified) are based is not altered as a result of interest rate benchmark reform. 6.8.2        For the purpose of applying paragraphs 6.8.4–6.8.12, the term ‘interest rate benchmark reform’ refers to the market-wide reform of an interest rate benchmark, including the replacement of an interest rate benchmark with an alternative benchmark rate such as that resulting from the recommendations set out in the Financial Stability Board’s July 2014 report ‘Reforming Major Interest Rate Benchmarks’.[1]. Amendments to AASB 1023 19 . Know about club membership, tournaments, products and much more. A hedged item that has been assessed at the time of its initial designation in the hedging relationship, whether it was at the time of the hedge inception or subsequently, is not reassessed at any subsequent redesignation in the same hedging relationship. 102M      An entity shall prospectively cease applying paragraph 102G to a hedging relationship at the earlier of: (a)            when the uncertainty arising from interest rate benchmark reform is no longer present with respect to the hedged risk and the timing and the amount of the interest rate benchmark-based cash flows of the hedged item or of the hedging instrument; and. Reproduction within Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use subject to the inclusion of an acknowledgment of the source. Paragraph B10 is deleted. The IASB has issued amendments to IFRS 3 Business Combinations that seek to clarify this matter. (b)            to a hedging instrument, when the uncertainty arising from interest rate benchmark reform is no longer present with respect to the timing and the amount of the interest rate benchmark-based cash flows of the hedging instrument. The AASB Board of Directors voted to put forward one new resolution: New 5.31 Alaska Standards for Culturally Responsive Schools – AASB BOD. The AASB considered and adopted the amendments made by the IASB in finalising AASB 2020-3. ED 290 incorporated IASB Exposure Draft ED/2019/3 Reference to the Conceptual Framework. These amendments arise from the issuance of International Financial Reporting Standard Clarifications to IFRS 15 Revenue from Contracts with Customers by the International Accounting Standards Board (IASB) in April 2016. (b)            when the hedging relationship that the hedged item is part of is discontinued. 39AG AASB 2020-3 Amendments to Australian Accounting Standards – Annual Improvements 2018–2020 and Other Amendments, issued in June 2020, amended paragraph D1(f) and added paragraph D13A. The amendments note that IFRS 3 is the result of a joint project between the IASB and the Financial Accounting Standards Board (FASB) and the business combinations requirements under IFRS ® Standards and US GAAP are substantially converged. These paragraphs apply only to such hedging relationships. The AASB did not make a submission to the IASB on ED/2017/4. New text in this paragraph is underlined. Two of the submissions expressed general support for the proposed amendments while commenting on the meaning of “economic benefits” for not-for-profit entities, an issue beyond the scope of this topic. Australian Accounting Standard AASB 2015-3 Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031 Materiality is set out in paragraphs 1 –15 and the Appendix. AASB 2017-5 Amendments to Australian Accounting Standards - Effective Date of Amendments to AASB 10 AND AASB 128 and Editorial Corrections. Optional concentration test The amendments include an election to use a concentration test. • Finance Position Paper of Implementation Options for AASB 16 Leases. Australian Accounting Standard AASB 2019-3 Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform is set out on pages 5 – 10. The AASB proposes to amend its standard AASB 136 Impairment of Assets regarding the International Accounting Standards Board's (IASB) intention to require only the disclosure of the recoverable amount of assets, including goodwill, for which there … 102L        An entity shall prospectively cease applying paragraph 102F: If the hedging relationship that the hedged item and the hedging instrument are part of is discontinued earlier than the date specified in paragraph 102L(a) or the date specified in paragraph 102L(b), the entity shall prospectively cease applying paragraph 102F to that hedging relationship at the date of discontinuation. This Standard makes amendments to AASB 119 Employee Benefits (issued in July 2004) and AASB 119 Employee Benefits (revised in December 2004).. (e)             the nominal amount of the hedging instruments in those hedging relationships. Amendments to AASB 8 10 . This instrument amends a number of Australian Accounting Standards to make minor improvements. AASB 2017-5 Amendments to Australian Accounting Standards - Effective Date of Amendments to AASB 10 AND AASB 128 and Editorial Corrections. Accounting Standard AASB 2017-2. All the paragraphs have equal authority. Amendments to AASB 9 Financial Instruments. These paragraphs apply only to such hedging relationships. AASB is a one pit stop for all your snooker needs. COMMENCEMENT OF THE LEGISLATIVE INSTRUMENT 10 AVAILABLE ON THE AASB WEBSITE. This retrospective application applies only to those hedging relationships that existed at the beginning of the reporting period in which an entity first applies those requirements or were designated thereafter, and to the amount accumulated in the cash flow hedge reserve that existed at the beginning of the reporting period in which an entity first applies those requirements. 6.8.4        For the purpose of determining whether a forecast transaction (or a component thereof) is highly probable as required by paragraph 6.3.3, an entity shall assume that the interest rate benchmark on which the hedged cash flows (contractually or non-contractually specified) are based is not altered as a result of interest rate benchmark reform. An entity shall apply these amendments when it applies the amendments to AASB 9 or AASB 139. Preface Standards Amended by AASB 2005-3. Earlier application is permitted. 102J         An entity shall prospectively cease applying paragraph 102D to a hedged item at the earlier of: 102K       An entity shall prospectively cease applying paragraph 102E at the earlier of: (b)            when the entire cumulative gain or loss recognised in other comprehensive income with respect to that discontinued hedging relationship has been reclassified to profit or loss. One Australian stakeholder made a submission directly to the IASB on ED/2019/3, supporting the IASB’s intention to remove a residual reference to the old conceptual framework, but not the specific proposals. 6.8.9        An entity shall prospectively cease applying paragraph 6.8.4 to a hedged item at the earlier of: (a)            when the uncertainty arising from interest rate benchmark reform is no longer present with respect to the timing and the amount of the interest rate benchmark-based cash flows of the hedged item; and. The AASB considered and adopted the amendments made by the IASB in finalising AASB 2020-3. To help highlight the fact that Canadian amendments to references to ISQC 1 may be updated upon the finalization of CSQM 1 and related conforming amendments, in addition to identifying the amended The amendments set out in this Standard apply to entities and financial statements in accordance with the application of AASB 7, AASB 9 and AASB 139 set out in AASB 1057 Application of Australian Accounting Standards. AASB 2017-3 Amendments to Australian Accounting Standards - Clarifications to AASB 4. These paragraphs have not been underlined for ease of reading. Temporary exceptions from applying specific hedge accounting requirements. Accounting Standard AASB 2020-3 Amendments to Australian Accounting Standards –Annual Improvements 2018-2020 and Other Amendments. AASB Standard AASB 2011-3 May 2011 . Accounting Standard AASB 2018-3. 3 AASB 1058, paragraph 12. Designating a component of an item as a hedged item. Those amendments are incorporated using clean text into the compilations of those Standards when they are prepared, based on the legal commencement date of the amendments. Interpretation 22 Foreign Currency Transactions and Advance Consideration: For profit only . AMENDMENTS TO AASB 139 8. 6.8.6        For the purpose of applying the requirements in paragraphs 6.4.1(c)(i) and B6.4.4–B6.4.6, an entity shall assume that the interest rate benchmark on which the hedged cash flows and/or the hedged risk (contractually or non-contractually specified) are based, or the interest rate benchmark on which the cash flows of the hedging instrument are based, is not altered as a result of interest rate benchmark reform. This Standard makes amendments to Accounting Standard AASB 15 Revenue from Contracts with Customers. However, the amendments made by this Standard do not include that underlining, striking out or other typographical material. For legal purposes, this legislative instrument commences on 31 December 2019. [2]      The report, 'Reforming Major Interest Rate Benchmarks', is available at http://www.fsb.org/wp-content/uploads/r_140722.pdf. the costs relating directly to a contract to provide goods or services would result in some viable contracts being treated as onerous contracts. The IASB analysed the feedback it received on the proposed amendments and decided to finalise the amendments, generally retaining its proposed approach. 102N       When designating a group of items as the hedged item, or a combination of financial instruments as the hedging instrument, an entity shall prospectively cease applying paragraphs 102D–102G to an individual item or financial instrument in accordance with paragraphs 102J, 102K, 102L, or 102M, as relevant, when the uncertainty arising from interest rate benchmark reform is no longer present with respect to the hedged risk and/or the timing and the amount of the interest rate benchmark-based cash flows of that item or financial instrument. 130H AASB 2014-1 Amendments to Australian Accounting Standards, issued in June 2014, amended paragraph 80. Transition for hedge accounting (Chapter 6). Earlier application of the amendments to individual Standards is permitted. Kris Peach Dated 11 May 2016 Chair – AASB Accounting Standard AASB 2016-3 Amendments to Australian Accounting Standards – Clarifications to AASB 15 … Amendments to AASB 112 13 . AASB 2019-3 Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform, Objective                                                                                                                                                                              5, Application                                                                                                                                                                         5, Amendments to AASB 9                                                                                                                                                 5, Amendments to AASB 139                                                                                                                                            8, Amendments to AASB 7                                                                                                                                               10, Commencement of the legislative instrument                                                                               10. Peppercorn leases, as defined by AASB 16, are leases that have significantly below-market terms and conditions principally to enable the entity to further its objectives. Amendments to AASB 5 9 . (f)           AASB 141 Agriculture to remove the requirement to exclude cash flows from taxation when measuring fair value, thereby aligning the fair value measurement requirements in AASB 141 with those in other Australian Accounting Standards. The AASB Board has also forwarded a modest amendment to resolution 5.2 Curriculum Expansion via Distance Delivery. This Standard makes amendments to the following Australian Accounting Standards: (a)          AASB 1 First-time Adoption of Australian Accounting Standards (July 2015); (b)          AASB 3 Business Combinations (August 2015); (c)          AASB 9 Financial Instruments (December 2014); (d)          AASB 116 Property, Plant and Equipment (August 2015); (e)          AASB 137 Provisions, Contingent Liabilities and Contingent Assets (August 2015); and. This Standard incorporates marked-up text to clearly identify some or all of the amendments made to the Standards. This Standard is issued by the AASB in furtherance of the objective of facilitating the Australian economy. (b)            when the entire amount accumulated in the cash flow hedge reserve with respect to that discontinued hedging relationship has been reclassified to profit or loss. 102I         When an entity, consistent with its hedge documentation, frequently resets (ie discontinues and restarts) a hedging relationship because both the hedging instrument and the hedged item frequently change (ie the entity uses a dynamic process in which both the hedged items and the hedging instruments used to manage that exposure do not remain the same for long), the entity shall apply the requirement in paragraphs 81 and AG99F—that the designated portion is separately identifiable—only when it initially designates a hedged item in that hedging relationship. Standards AASB 2018-3 Amendments to Australian Accounting Standards – Reduced Disclosure Requirements (August 2018) , B7A–B7C, B8A and B12A–B12D, and headings above paragraphs B7A, B8 and B12, added... 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