Here are some of the major changes to accounting standards that you will need to consider for your 30 June 2010 annual financial reports.

AASB 2 Share-based Payment
  • Clarification that vesting conditions shall consist only of service and performance conditions.  Non-vesting conditions may affect the fair value of the share based payment.  Cancellations initiated by the recipient shall be accounted for as cancellations.
AASB 3 Business Combinations
  • Revised standard now applies to mutual entities and business combinations achieved by contract alone (e.g. stapled groups)
  • Transactions relating to the acquisitions of assets that may be captured as a business combination has been expanded
  • New requirements for calculation of goodwill
  • Alternative measurement basis available for non-controlling interests where ‘full-goodwill’ of a business combination is recognised
  • Subsequent remeasurement of contingent consideration and subsequent recognition of deferred tax assets are reflected in the income statement
AASB 5 Non-current Assets Held for Sale and Discontinued Operations
  • Subsidiaries that an entity is committed to selling shall have the entire assets and liabilities of that subsidiary classified as held for sale irrespective of any non-controlling interest retained. Applicable disclosures required
  • Non-current assets held for distribution to owners shall be measured at lower of carrying value land fair value less costs to distribute and shall be classified and presented in accordance with AASB 5.
AASB 7 Financial Instrument: Disclosures
  • Various disclosure amendments including requirements for disclosure of the 3 tiered fair value hierarchy and improvements to liquidity risk disclosures.
AASB 8 Operating Segments
  • Redefinition of operating segments may change composition of segments previously reported and impact impairment testing under AASB 136. Requires a management style of segment reporting which also incorporates disclosure about products, customers and geographical areas.
AASB 101 Presentation of Financial Statements
  • Revamped financial statements now include statement of comprehensive income and other comprehensive income
  • Third balance sheet required where there has been a change in accounting policy, restatement or reclassification
AASB 110 Events after the Reporting Period
  • Dividends declared after reporting date but before date of authorisation shall be disclosed by note
AASB 117 Leases
  • Leases of land could be treated as finance leases despite title not passing at the end of the lease.
AASB 120 Accounting for Government Grants and Disclosure of Government Assistance
  • Loans received from a government with a below market interest rate should be accounted for as including the receipt of a grant
AASB 123 Borrowing Costs
  • Prohibition on expensing of borrowing costs in relation to qualifying assets
AASB 127 Consolidated and Separate Financial Statements
  • Now details the accounting requirements of inserting a new parent entity into a group for the separate financial statements of that parent
  • Dividends from investments in subsidiaries, jointly controlled entities or associates shall be recognised as revenue irrespective of payment out of post acquisition earnings.  Such dividends may be an impairment indicator  under AASB 136
  • Non-controlling interests may now have a deficit balance
  • Changes in proportionate interests in a subsidiary between that held by a parent and non-controlling interests shall not have a resultant impact on the income statement
  • Where control of a subsidiary is lost, the carrying value of any remaining interest in the entity shall be initially recognised at fair value
AASB 132 Financial Instruments: Presentation
  • Potential to reclassify instruments issued previously classified as financial liabilities as equity subject to meeting certain requirements
AASB 138 Intangible Assets
  • Clarifies that expenditure incurred on advertising and promotional activities (including mail order catalogues) should be recognised as an expense when incurred
AASB 140 Investment Property
  • Properties that are under development or construction for future use as investment property should be classified as such and are no longer deemed property, plant & equipment.
Interpretation 15 Agreements for the Construction of Real Estate
  • Addresses the revenue recognition accounting requirements for real estate construction activities with regard to the appropriate use of AASB 111 and AASB 118.
Interpretation 18 Transfers of Assets from Customers
  • Deals with the accounting by entities of the receipt of property, plant & equipment (or cash) from a customer for the purpose of using that asset to connect the customer to a network and/or providing the customer with a supply of goods or services