Effective date and transition (AASB121_08-15_COMPoct23_01-25)

An entity shall apply this Standard for annual periods beginning on or after 1 January 2018. Earlier application is encouraged for periods beginning after 24 July 2014 but before 1 January 2018. If an entity applies this Standard for a period beginning before 1 January 2018, it shall disclose that fact.

 [Deleted by the AASB]

AASB 2008-3 Amendments to Australian Accounting Standards arising from AASB 3 and AASB 127 amended the previous version of this Standard as follows: added paragraphs 48A–48D and amended paragraph 49. An entity shall apply those amendments prospectively for annual periods beginning on or after 1 July 2009. If an entity applies AASB 127 (amended 2008) for an earlier period, the amendments shall be applied for that earlier period.

[Deleted]

[Deleted by the AASB]

[Deleted]

[Deleted by the AASB]

[Deleted]

AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) (as amended) and AASB 2014-1 Amendments to Australian Accounting Standards amended the previous version of this Standard as follows: amended paragraphs 3(a), 3(b), 4, 5, 27 and 52(a) and deleted paragraph 60C. Paragraph 60E, added by AASB 2010-7, was deleted by AASB 2014-1. Paragraph 60I, added by AASB 2014 1, was deleted by AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014). An entity shall apply those amendments when it applies AASB 9.

AASB 16 Leases, issued in February 2016, amended paragraph 16. An entity shall apply that amendment when it applies AASB 16.

AASB 2023-5 Amendments to Australian Accounting Standards – Lack of Exchangeability, issued in October 2023, amended paragraphs 8 and 26, added paragraphs 8A–8B, 19A, 57A–57B and Appendix A, relabelled the original Appendix A as Appendix B and amended it. An entity shall apply those amendments for annual reporting periods beginning on or after 1 January 2025. Earlier application is permitted. If an entity applies the amendments for an earlier period, it shall disclose that fact. The date of initial application is the beginning of the annual reporting period in which an entity first applies those amendments.

In applying AASB 2023-5, an entity shall not restate comparative information. Instead: 

(a) when the entity reports foreign currency transactions in its functional currency, and, at the date of initial application, concludes that its functional currency is not exchangeable into the foreign currency or, if applicable, concludes that the foreign currency is not exchangeable into its functional currency, the entity shall, at the date of initial application: 

(i) translate affected foreign currency monetary items, and non-monetary items measured at fair value in a foreign currency, using the estimated spot exchange rate at that date; and 

(ii) recognise any effect of initially applying the amendments as an adjustment to the opening balance of retained earnings. 

(b) when the entity uses a presentation currency other than its functional currency, or translates the results and financial position of a foreign operation, and, at the date of initial application, concludes that its functional currency (or the foreign operation’s functional currency) is not exchangeable into its presentation currency or, if applicable, concludes that its presentation currency is not exchangeable into its functional currency (or the foreign operation’s functional currency), the entity shall, at the date of initial application: 

(i) translate affected assets and liabilities using the estimated spot exchange rate at that date; 

(ii) translate affected equity items using the estimated spot exchange rate at that date if the entity’s functional currency is hyperinflationary; and 

(iii) recognise any effect of initially applying the amendments as an adjustment to the cumulative amount of translation differences - accumulated in a separate component of equity.