Financial Audit Update Thursday 3 March 2011 and Thursday 10 March 2011_part8 pptx

• Future Developments IASB ED/2010/9: – Standard expected to be released in 2011 – Simplified retrospective approach for application – All leases operating and finance on balance sheet –

• Future Developments (IASB ED/2010/9):

– Standard expected to be released in 2011

– Simplified retrospective approach for application

– All leases (operating and finance) on balance sheet – Potential implications:

• Entities with high number of low value leases (e.g car fleet) reassess lease terms, etc at each reporting date

• Changes to key analytical measures (e.g covenants)

• Grantor accounting in Public Private Partnerships

• Deed of Grant in Trust (DOGIT) Land

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Financial Instruments

• Minor amendments to AASB 139 for 2010-11 (not expected to have a significant impact)

• New standard - AASB 9 (to replace AASB 139)

• Effective 1 January 2013

• Amends requirements for classification,

measurement & disclosure of financial assets

• Most financial assets currently measured at

amortised cost will now need to be at fair value

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Reduced Disclosure Requirements

• New Standard - AASB 1053

• Effective from 1 July 2013

• Establishes 2 tiers for financial reporting

• Tier 2 requires fewer disclosures

• Regulator (Treasury) can mandate Tier 1

• Treasury is not allowing early adoption

• Treasury finalising policy position

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• Future Developments (IASB ED/2010/6):

– Standard expected to be released in 2011

– Retrospective application is proposed

– Extensive changes to current revenue and

construction standards (AASB 118 and AASB 111) – Identify performance obligations within contracts and recognise revenue as each obligation is satisfied

• ED 180 on income from non-exchange

transactions to be revised and re-released

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Other Developments

• Exposure draft on related party disclosures in the not-for-profit public sector expected early 2011 with revised standard possibly around September

• Issues paper on control in the not-for-profit public sector (phase 2) expected early 2011 with standard issued by December 2011

• Revised standard extending relief from

consolidation, the equity method and proportionate consolidation (ED 205) expected by mid 2011

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Thank you for attending

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