Land under roads (AASB1051_12-07_COMPmar20_07-21)

Other Australian Accounting Standards (including AASB 116 Property, Plant and Equipment) apply to land under roads, except to the extent that this Standard requires or permits otherwise. This Standard does not apply to land under roads that are service concession assets in accordance with AASB 1059 Service Concession Arrangements: Grantors.

An entity may elect to recognise (including continue to recognise or to recognise for the first time), subject to satisfaction of the asset recognition criteria, or not to recognise (including continue not to recognise or to derecognise) as an asset, land under roads acquired before the end of the first reporting period ending on or after 31 December 2007.

An entity shall make a final election under paragraph 8 effective as at the first day of the next reporting period following the end of the first reporting period ending on or after 31 December 2007. Any adjustments that arise from a final election that is made effective as at that first day shall be made against the opening balance of accumulated surplus (deficiency) of that next reporting period.

Adjustments arising under paragraph 9 include those relating to a revision of recognised amounts of previously recognised land under roads acquired before the end of the first reporting period ending on or after 31 December 2007, made to reflect a reassessment of the factors used to determine those recognised amounts.  Any adjustments that arise from an election that is made effective:

(a)            before the first day of the next reporting period following the end of the first reporting period ending on or after 31 December 2007, is made against accumulated surplus (deficiency) of the earliest prior period presented, and therefore comparative data is adjusted; and

(b)            on the first day of the next reporting period following the end of the first reporting period ending on or after 31 December 2007, is made against the opening balance of accumulated surplus (deficiency) of that next reporting period, and therefore comparative data is not adjusted.

An entity shall disclose its accounting policy for land under roads acquired before the end of the first reporting period ending on or after 31 December 2007, in each reporting period to which this Standard is applied.

The nature and net amount of each adjustment made in accordance with paragraph 9 shall be disclosed.

Where an entity recognises land under roads in accordance with paragraphs 8 and 9, but after the entity’s first-time adoption of Australian equivalents to International Financial Reporting Standards (IFRSs), the entity may, in relation to land under roads, elect to adopt the fair value (as at the date of that election) or a previous revaluation under the “fair value or revaluation as deemed cost” exemptions contained in AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting Standards, as if it were adopting Australian equivalents to IFRSs for the first time.

Paragraph 13 enables an entity that recognises land under roads acquired before the end of the first reporting period ending on or after 31 December 2007, after its first-time adoption of Australian equivalents to IFRSs and under paragraphs 8 and 9, to elect to:

(a)            measure the fair value of land under roads as at the date of the election made under paragraph 13 and use that fair value as the deemed cost;

(b)            use an earlier revaluation of land under roads as its deemed cost; or

(c)            use an earlier deemed cost of land under roads established from an event-driven fair value measurement as its deemed cost.

Land under roads acquired after the end of the first reporting period ending on or after 31 December 2007 is accounted for in accordance with AASB 116.