2009: Year of change?

Background

In 2006, the International Accounting Standards Board (“IASB”) announced that it would not require the mandatory application of new standards under development or major amendments to existing standards, before 1 January 2009.

Is the IASB’s ongoing review of its work program and of market practices, provides a stable platform of standards for those countries that adopted IFRS in 2005 and  allows new countries to adopt IFRS.

This means that whilst standards were issued in 2006, they are not mandatory until the 2009 / 2010 financial year.

These standards must be considered by entities, (AASB 108 requirement to disclose the impacts of standards not yet implemented in the financial statements) however many organisation have not fully reviewed these standards.

How many new standards are to be implemented in the 2009 / 2010 financial year?

The list below contains significant standards only and not consequential amendments arising from changes.

Effective for 31 December 2009 year ends:

• AASB 8 Operating Segments
• AASB 101 Presentation of Financial Statements
• AASB 123 Borrowing Costs
• 2008 – 1 Amendments to Australian Accounting Standards – Share-based payments: Vesting Conditions and Cancellations
• 2008 – 2 Amendments to Australian Accounting Standards – Puttable Financial Instruments and Obligations arising on Liquidation
• 2008 – 5 Amendments to Australian Accounting Standards arising from the Annual Improvements Project
• 2008 – 7 Amendments to Australian Accounting Standards – Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate
• Interpretation 15 Agreements for the Construction of Real Estate

Effective for 30 June 2010 year ends

• AASB 3 Business Combinations
• AASB 127 Consolidated and Separate Financial Statements
• 2008 – 6 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project
• 2008 – 8 Amendments to Australian Accounting Standards – Eligible Hedged Items
• Interpretation 17 Distribution of Non-cash Assets to Owners

How do I keep up to date with all the changes and the impacts on my business?

We understand that the task of keeping up with changes can be daunting, particularly given the length of some of the new standards. Click here to view the Technical Accounting Alerts (TA alerts) on our website 

The TA alerts are not a substitute for reading the accounting standard  and are not specific to your organisation. However they do provide a summary of key points of the new standards to allow you to quickly assess any potential impact on your entity and determine the need for further probing into the detailed requirements.

In addition to new standards, the TA alerts also cover some difficult accounting concepts which the technical teams of both Grant Thornton International and Grant Thornton Australia have received a number of queries requiring guidance.

Recent alerts have covered subjects such as:

• Amendments to IAS 39
• ASIC financial reporting surveillance
• AASB 108 disclosures for standards issued not yet effective

Your Grant Thornton contact can also assist with interpreting the requirements in your circumstances; to ensure that you are applying the new requirements in the most timely and practical manner for your organisation.

Author: Carmen Ridley, February 2009

Want advice or more information on this topic?
Contact the author by email at cridley@grantthorntonvic.com.au

Alternatively, phone Carmen directly
T +61 3 8663 6299