Appendix E -- Short-term exemptions from Australian Accounting Standards

Exemption from the requirement to restate comparative information for AASB 9 | Uncertainty over income tax treatments

This appendix is an integral part of the Standard.

Exemption from the requirement to restate comparative information for AASB 9

E1

If an entity’s first Australian-Accounting-Standards reporting period begins before 1 January 2019 and the entity applies the completed version of AASB 9 (issued in 2014), the comparative information in the entity’s first Australian-Accounting-Standards financial statements need not comply with AASB 7 Financial Instruments: Disclosure or the completed version of AASB 9 (issued in 2014), to the extent that the disclosures required by AASB 7 relate to items within the scope of AASB 9. For such entities, references to the ‘date of transition to Australian Accounting Standards’ shall mean, in the case of AASB 7 and AASB 9 (2014) only, the beginning of the first Australian-Accounting-Standards reporting period.

E2

An entity that chooses to present comparative information that does not comply with AASB 7 and the completed version of AASB 9 (issued in 2014) in its first year of transition shall:

(a) apply the requirements of its previous GAAP in place of the requirements of AASB 9 to comparative information about items within the scope of AASB 9.

(b) disclose this fact together with the basis used to prepare this information.

(c) treat any adjustment between the statement of financial position at the comparative period’s reporting date (ie the statement of financial position that includes comparative information under previous GAAP) and the statement of financial position at the start of the first Australian-Accounting-Standards reporting period (ie the first period that includes information that complies with AASB 7 and the completed version of AASB 9 (issued in 2014)) as arising from a change in accounting policy and give the disclosures required by paragraph 28(a)–(e) and (f)(i) of AASB 108. Paragraph 28(f)(i) applies only to amounts presented in the statement of financial position at the comparative period’s reporting date.

(d) apply paragraph 17(c) of AASB 101 to provide additional disclosures when compliance with the specific requirements in Australian Accounting Standards is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity’s financial position and financial performance.

E3–E7

[Deleted]

Uncertainty over income tax treatments

E8

A first-time adopter whose date of transition to Australian Accounting Standards is before 1 July 2017 may elect not to reflect the application of AASB Interpretation 23 Uncertainty over Income Tax Treatments, as identified in AASB 1048 Interpretation of Standards, in comparative information in its first Australian-Accounting Standards financial statements. An entity that makes that election shall recognise the cumulative effect of applying Interpretation 23 as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at the beginning of its first Australian-Accounting Standards reporting period.