What's new in financial reporting for December 2007?

The analysis below provides a high level overview of new and revised financial reporting requirements that need to be considered for financial reporting periods ending on 31 December 2007. Entities can use this listing to perform a quick check that all the new financial reporting requirements have been fully considered as part of their December reporting close process. The information below was last updated on 10 March 2008 for developments to that date - we will update this page if any significant developments occur in the period to 31 March 2008.

The information below is organised as follows:

In addition, we've provided answers to some of the commonly asked questions about the disclosures required in relation to new and revised accounting pronouncements. Read more...

You can also download a PDF version of this information at the bottom of the page.

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What are the big picture issues for December 2007?

The key considerations for December 2007 include:

the impact of the new disclosure requirements in AASB 7 Financial Instruments: Disclosures, which must be mandatorily adopted for the first time by annual December reporters (there are no specific disclosures for half-year reporters). Entities should not underestimate the time and effort involved in preparing for the implementation of this Standard. Further information on this can be found in our Accounting alert 2007/02 (October 2005, PDF 58kb). Example disclosures can be found in our consolidated model annual financial report
the impacts of AASB 2007-4 Amendments to Australian Accounting Standards arising from ED 151 and Other Amendments, AASB 2007-7 Amendments to Australian Accounting Standards and Erratum: Proportionate Consolidation, which, together with the October 2006 version of AASB 101 Presentation of Financial Statements, offer new accounting policy choices and eliminate many Australian-specific disclosures. Further information on this can be found in Accounting alert 2007/09
the impacts of the Corporations Act 2001 amendments on reporting requirements, particularly the revised small/large proprietary company test. Further information on this can be found in Accounting alert 2007/11 and Accounting alert 2007/13
for most unlisted entities, the option of early adopting AASB 8 Operating Segments should be considered, so as to avoid segment reporting disclosures
whether piecemeal early adoption of the IFRS Mark II standards that are emerging should be considered, or left to a 'big bang' from 2009/10 - new/revised standards on segment reporting, borrowing costs, financial statement presentation, share-based payment, business combinations and consolidated and separate financial statements have already been issued, and it is possible that other Standards may be issued before the close of the December reporting season.

As occurs so often with changes to accounting standards and financial reporting requirements, some of the other new or revised pronouncements listed in the tables below may have substantial impact on particular entities. Therefore, it is important that the pronouncements listed are carefully reviewed for any potential impacts or opportunities.

Where early adoption is being contemplated, it is important to address any necessary procedural requirements, e.g. for entities reporting under the Corporations Act 2001, appropriate director's resolutions for early adoption must be made under s.334(5).

In addition, the disclosure requirements required in relation to new and revised accounting pronouncements need to be carefully considered. Read more...

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What are the new and revised accounting pronouncements for December 2007?

The tables below outline the new and revised pronouncements that either are to be applied for the first time at 31 December 2007, or which may be early adopted.

In the majority of cases, the disclosure requirements of the pronouncements listed in the tables below would not be applicable to half-year financial reports. However, where relevant, the recognition and measurement requirements of any relevant pronouncements would be applied where those pronouncements have been adopted by the entity.

New and revised IFRS-equivalent Standards

New or revised requirement	Effective for annual reporting periods beginning/ending on or after	Applicability at 31 December 2007 to		More information
New or revised requirement		Annual reporting periods	Interim reporting periods	More information
*AASB 101 Presentation of Financial Statements* (revised October 2006)** Removes Australian specific requirements from AASB 101 and incorporates amendments made on the previous version of AASB 101 on the introduction of AASB 7 surrounding the disclosure of the entity's objectives, policies and processes for managing capital.	(beginning) 1 January 2007	Mandatory	Mandatory	Accounting alert 2006/11
AASB 101 Presentation of Financial Statements (revised September 2007), AASB 2007-8 Amendments to Australian Accounting Standards arising from AASB 101 The main changes from the previous version of AASB 101 are to require that an entity must: present all non-owner changes in equity ('comprehensive income') either in one statement of comprehensive income or in two statements (a separate income statement and a statement of comprehensive income). Components of comprehensive income may not be presented in the statement of changes in equity present an additional statement of financial position (balance sheet) as at the beginning of the earliest comparative period when the entity applies an accounting policy retrospectively, makes a retrospective restatement, or reclassifies items in its financial statements (this would generally mean that three balance sheets are presented in these circumstances) disclose income tax relating to each component of other comprehensive income disclose reclassification adjustments relating to components of other comprehensive income. In what many Australian constituents may consider a 'back to the future' change, AASB 101 amends the titles of financial statements as follows: 'balance sheet' will become 'statement of financial position' 'income statement' will become part of the 'statement of comprehensive income', unless a separate income statement is presented 'cash flow statement' will become 'statement of cash flows'.	(beginning) 1 January 2009	Optional	Optional	Accounting alert 2007/16 IAS Plus Newsletter (September 2007, PDF 119kb)
AASB 123 Borrowing Costs (revised), AASB 2007-6 Amendments to Australian Accounting Standards arising from AASB 123 AASB 123 is equivalent to IAS 23 of the same name and eliminates the option of expensing borrowing costs related to qualifying assets, instead requiring capitalisation. Transitional provisions require prospective application to borrowing costs relating to qualifying assets for which the commencement date for capitalisation is on or after the application date. However, an entity may designate any date before the application date and apply the Standard to borrowing costs relating to all qualifying assets for which the commencement date for capitalisation is on or after that date. The Amending Standard eliminates reference to the expensing option in various other pronouncements.	(beginning) 1 January 2009	Optional	Optional	Accounting alert 2007/10 IAS Plus Newsletter (April 2007, 99kb)
[NEW] AASB 3 Business Combinations (2008), AASB 127 Consolidated and Separate Financial Statements and AASB 2008-3 Amendments to Australian Accounting Standards arising from AASB 3 and AASB 127 Revised standards resulting from the joint IASB-FASB Business Combinations Phase II project, equivalent to revised IFRS 3 Business Combinations and IAS 27 Consolidated and Separate Financial Statements. Alters the manner in which business combinations and changes in ownership interests in subsidiaries are accounted for. There are also consequential amendments to other standards effected through AASB 2008-2, most notably AASB 128 Investments in Associates and AASB 131 Interests in Joint Ventures.	AASB 3 - (business combinations occuring after the beginning of annual reporting periods beginning) 1 July 2009 AASB 127 and AASB 2008-3 - (beginning) 1 July 2009	Optional	Optional	Accounting alert 2008/03 Accounting alert 2008/01 Deloitte Australia Insights podcast IAS Plus Newsletter (January 2008, PDF 122kb) IAS Plus project page
AASB 7 Financial Instruments: Disclosures, AASB 2005-10 Amendments to Australian Accounting Standards AASB 7 is equivalent to IFRS 7 of the same name and introduces new disclosure requirements in relation to financial instruments. AASB 2005-10 implements various amendments to other standards, most notably to implement the IASB Amendment to IAS 1 Presentation of Financial Statements - Capital Disclosures.	(beginning) 1 January 2007	Mandatory	Mandatory (for the annual reporting period, no specific disclosures required in interim financial reports)	IAS Plus Newsletter (October 2005, PDF 58kb) Model financial reports
AASB 8 Operating Segments, AASB 2007-3 Amendments to Australian Accounting Standards arising from AASB 8 AASB 8 replaces AASB 114 Segment Reporting and introduces a new 'management approach' to segment reporting to align IFRS with US-GAAP. Unlike AASB 114, AASB 8 only applies to entities which have on issue any debt or equity securities that are traded in a public market (or which are in the process of issuing any class of instruments in a public market). Therefore, reporting entities that are out of scope of AASB 8 may wish to early adopt this Standard to avoid segment reporting in their financial reports.	(beginning) 1 January 2009	Optional	Optional	IAS Plus Newsletter(December 2006, 113kb) Accounting alert 2007/04
Revised Guidance on Implementing IFRS 4 Insurance Contracts The Revised Guidance on IFRS 4 contains consequential amendments resulting from the issue of other pronouncements, most notably IFRS 7 Financial Instruments: Disclosures.	(beginning) 1 January 2007	Mandatory (as guidance)	Mandatory (as guidance)

New or revised domestic Standards

New or revised requirement	Effective for annual reporting periods beginning/ending on or after	Applicability at 31 December 2007 to		More information
New or revised requirement		Annual reporting periods	Interim reporting periods	More information
[NEW] *AASB 1004 Contributions* (revised)** This Standard applies to not-for-profit entities (reporting entities and general purpose financial reports) and the financial statements of the General Government Sectors (prepared in accordance with AASB 1049). The revisions have the effect of relocating the requirements on contributions from AASs 27, 29 and 31, substantively unamended (with some exceptions), into AASB 1004.	(beginning) 1 July 2008	Optional	Optional	Accounting alert 2007/19 Accounting alert 2007/20
*AASB 1048 Interpretation and Application of Standards* (September 2007)** Updated version of this 'service standard' to provide a mandatory requirement to comply with Interpretations in the Australian context.	(ending) 30 September 2007	Mandatory (refer to Interpretations below)	Mandatory (refer to Interpretations below)	See the related Interpretations below
AASB 1049 Financial Reporting of General Government Sectors by Governments This Standard applies to the Australian Government and each State and Territory Government and is therefore of limited relevance to other entities. Now effectively superseded by the revised AASB 1049 (immediately below).	(beginning) 1 July 2008	Optional	Optional	Accounting alert 2006/10
AASB 1049 Whole of Government and General Government Sector Financial Reporting This Standard integrates GAAP/GFS harmonisation requirements for both GGS and whole of governments, combining the requirements of AASB 1049 Financial Reporting of General Government Sectors by Governments and the modified proposals from ED 155 Financial Reporting by Whole of Governments.	(beginning) 1 July 2008	Optional	Optional	Accounting alert 2007/17
[NEW] AASB 1050 Administered Items This Standard only applies to general purpose financial statements of government departments. The main requirements are for a government department to disclose administered income, expenses, assets and liabilities (applying the principles of AASB 1052 Disaggregated Disclosures), along with details of certain non-department controlled transfers. Administered income, expenses, assets and liabilities are reported on the same basis adopted for the recognition of elements of financial statements.	(beginning) 1 July 2008	Optional	Optional	Accounting alert 2007/19 Accounting alert 2007/20
[NEW] AASB 1051 Land Under Roads Applies to general purpose financial statements of local governments, government departments, GGSs and whole of governments. Requires land under roads acquired after the end of the first reporting period ending on or after 31 December 2007 to be accounted for under AASB 116 Property, Plant and Equipment, with transitional provisions for land acquired prior to that date.	(beginning) 1 July 2008	Optional	Optional	Accounting alert 2007/19 Accounting alert 2007/20
[NEW] AASB 1052 Disaggregated Disclosures This Standard, which only applies to general purpose financial statements of local governments and government departments, specifies principles for reporting of financial information by function or activity by local governments and financial information about service costs and achievements by government departments.	(beginning) 1 July 2008	Optional	Optional	Accounting alert 2007/19 Accounting alert 2007/20

New Amending Standards

The table below lists the Amending Standards that do not relate to the pronouncements listed in other tables.

New or revised requirement	Effective for annual reporting periods beginning/ending on or after	Applicability at 31 December 2007 to		More information
New or revised requirement		Annual reporting periods	Interim reporting periods	More information
AASB 2007-4 Amendments to Australian Accounting Standards arising from ED 151 and Other Amendments and Erratum: Proportionate Consolidation Implements the proposals in ED 151 Australian Additions to, and Deletions from, IFRSs and makes various other editorial amendments. New accounting policy choices are introduced and many Australian-specific disclosures deleted. Early adoption of this Standard may be attractive to many entities. Erratum: Proportionate Consolidation issued in July 2007 makes further revisions to various pronouncements relating to the introduction of the option of proportionate consolidation in AASB 131 Interests in Joint Ventures.	(beginning) 1 July 2007	Optional	Mandatory	Accounting alert 2007/09 Accounting alert 2007/07
AASB 2007-5 Amendments to Australian Accounting Standard - Inventories Held for Distribution by Not-for-Profit Entities Amends AASB 102 Inventories to require inventories held for distribution by not-for-profit entities to be measured at cost, adjusted when applicable for any loss of service potential.	(beginning) 1 July 2007	Optional	Mandatory	Accounting alert 2007/10
AASB 2007-7 Amendments to Australian Accounting Standards Makes editorial amendments to six Standards, removes the encouragement in AASB 107 Cash Flow Statements to adopt a particular format for the cash flow statement and deletes superseded implementation guidance accompanying AASB 4 Insurance Contracts.	(beginning) 1 July 2007	Optional	Mandatory	Accounting alert 2007/12
[NEW] AASB 2007-9 Amendments to Australian Accounting Standards arising from the Review of AAS 27, AAS 29 and AAS 31 Relocates certain relevant requirements from AASs 27, 29 and 31, substantively unamended, into existing topic-based standards. This Standard also makes consequential amendments, arising from the short-term review of AASs 27, 29 and 31, to AASB 5, AASB 8, AASB 101 and AASB 114.	(beginning) 1 July 2008	Optional	Optional	Accounting alert 2007/19 Accounting alert 2007/20
[NEW] AASB 2007-10 Further Amendments to Australian Accounting Standards arising from AASB 101 This Amending Standard changes the term 'general purpose financial report' to 'general purpose financial statements' and the term 'financial report' to 'financial statements', where relevant, in Australian Accounting Standards (including Interpretations) to better align with IFRS terminology. [UPDATE] Although the approval of this Standard was noted in the AASB Action Alert and minutes from the December 2007 AASB meeting, it is yet to be publicly released.	(beginning) 1 January 2009	Optional	Optional	Accounting alert 2007/20
[NEW] AASB 2008-1 Amendments to Australian Accounting Standard - Share-based Payments: Vesting Conditions and Cancellations Amends AASB 2 Share-based Payment to introduce equivalent amendments made to IFRS 2 Share-based Payment by the IASB to: clarify that vesting conditions are those conditions that determine whether the entity receives the services that result in the counterparty’s entitlement restrict the definition of vesting conditions to include only service conditions and performance conditions amend the definition of performance conditions to require the completion of a service period in addition to specified performance targets specify that all cancellations, whether by the entity or by other parties, should receive the same accounting treatment.	(beginning) 1 January 2009	Optional	Optional	Accounting alert 2008/02 IAS Plus Newsletter(January 2008, 126kb)
[NEW] AASB 2008-2 Amendments to Australian Accounting Standards - Puttable Financial Instruments and Obligations arising on Liquidation Amends AASB 132 Financial Instruments: Presentation and AASB 101 Presentation of Financial Statements to introduce equivalent requirements to the IASB's Amendments to IAS 32 Financial Instruments: Presentation and IAS 1 Presentation of Financial Statements - Puttable Financial Instruments and Obligations Arising on Liquidation. Permits certain puttable financial instruments and instruments (or components of instruments) that impose on the entity an obligation to deliver to another party a pro-rata share of the net assets of the entity only on liquidation, to be classified as equity, subject to specified criteria being met.	(beginning) 1 January 2009	Optional	Optional	Accounting alert 2008/03 IAS Plus Newsletter(February 2008, 101kb)

New and revised Interpretations

New or revised requirement	Effective for annual reporting periods beginning/ending on or after	Applicability at 31 December 2007 to		More information
New or revised requirement		Annual reporting periods	Interim reporting periods	More information
Interpretation 7 Applying the Restatement Approach under AASB 129 'Financial Reporting in Hyperinflationary Economies' Equivalent to IFRIC 7 Applying the Restatement Approach under IAS 29 'Financial Reporting in Hyperinflationary Economies'. Not expected to be of widespread importance in the Australian context, but may affect some entities with foreign operations in certain jurisdictions.	(beginning) 1 March 2006	Mandatory	Already implemented	IAS Plus Newsletter (December 2005, 51kb)
Interpretation 8 Scope of AASB 2 Equivalent to IFRIC 8 Scope of IFRS 2. May impact some entities with operations in certain countries, particularly those entities affected by Black Economic Empowerment (BEE) transactions in South Africa.	(beginning) 1 May 2006	Mandatory	Already implemented	IAS Plus Newsletter (January 2006, 53kb)
Interpretation 9 Reassessment of Embedded Derivatives Equivalent to IFRIC 9 of the same name. Prohibits an entity from reassessing whether an embedded derivative needs to be separated from the host contract after the initial hybrid contract is recognised unless there is a change in the terms of the contract that significantly modifies the cash flows that otherwise would be required under the contract, in which case reassessment is required.	(beginning) 1 June 2006	Mandatory	Already implemented	Accounting Alert 2006/04 IAS Plus Newsletter (March 2006, 58kb)
Interpretation 10 Interim Financial Reporting and Impairment Equivalent to IFRIC 10 of the same name. Concludes that where an entity has recognised an impairment loss in an interim period in respect of goodwill or an investment in either an equity instrument or a financial asset carried at cost because fair value is not reliably determinable, that impairment should not be reversed in subsequent interim financial statements nor in annual financial statements.	(beginning) 1 November 2006	Mandatory	Mandatory	IAS Plus Newsletter (August 2006, 49KB)
Interpretation 11 AASB 2 - Group and Treasury Share Transactions, AASB 2007-1 Amendments to Australian Accounting Standards arising from AASB Interpretation 11 Equivalent to IFRIC 11 of the same name. Addresses whether certain types of share-based payment transactions with employees (or other suppliers of goods and services) should be accounted for as equity-settled or as cash-settled transactions under AASB 2.	(beginning) 1 March 2007	Optional	Mandatory	Accounting alert 2007/08 IAS Plus Newsletter (December 2006, PDF 85kb)
Interpretation 12 Service Concession Arrangements, Interpretation 4 Determining whether an Arrangement contains a Lease (revised), Interpretation 129 Service Concession Arrangements: Disclosure (revised), AASB 2007-2 Amendments to Australian Accounting Standards arising from AASB Interpretation 12 Equivalent to IFRIC 12 of the same name. Addresses the appropriate accounting for service concession arrangements under which private sector entities participate in the development, financing, operation and maintenance of infrastructure for the provision of public services, such as transport, water and energy facilities.	(beginning) 1 January 2008	Optional	Optional	IAS Plus Newsletter (December 2006, PDF 128kb) Our overview analysis of AASB Interpretation 12 Service Concession Arrangements
Interpretation 13 Customer Loyalty Programmes Adopts a revenue allocation rather than cost accrual approach to accounting for customer loyalty programmes. In other words, loyalty awards are not seen as costs that directly relate to the goods or services already delivered, rather they are separate goods or services delivered at a later date.	(beginning) 1 July 2008	Optional	Optional	Accounting alert 2007/14 IAS Plus newsletter (June 2007, PDF 106kb) IAS Plus project page
Interpretation 14 AASB 119 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction This Interpretation deals with the following issues: when refunds or reductions in future contributions should be regarded as available in accordance with paragraph 58 of AASB 119 Employee Benefits how a minimum funding requirement might affect the availability of reductions in future contributions when a minimum funding requirement might give rise to a liability.	(beginning) 1 January 2008	Optional	Optional	Accounting alert 2007/14 IAS Plus Newsletter (July 2007, 221kb) IAS Plus project page
[NEW] Interpretation 1003 Australian Petroleum Resource Rent Tax This Australian-specific Interpretation specifies that Australian Petroleum Resource Rent Tax falls within the scope of Accounting Standard AASB 112 Income Taxes. Has the potential to have effects on accounting for other government imposts.	(ending) 30 June 2008	Optional	Mandatory (for annual reporting period)	Accounting alert 2007/19 Interpretation 1003 (from the AASB website, 280kb)
[NEW] *Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities* (revised)** This revised Interpretation differs from UIG Interpretation 1038 in that it does not apply to government controlled not-for-profit entities or for-profit government departments in respect of a restructure of administrative arrangements. This Interpretation has also been updated for changes as a result of AASB 2007-8 Amendments to Australian Accounting Standards arising from AASB 101.	(beginning) 1 July 2008	Optional	Optional	Accounting alert 2007/19 Accounting alert 2007/20

Pronouncements approved by the IASB/IFRIC where an equivalent pronouncement has not been issued by the AASB

New or revised requirement	Effective for annual reporting periods beginning/ending on or after	Applicability at 31 December 2007 to		More information
New or revised requirement		Annual reporting periods	Interim reporting periods	More information
[NEW] *IFRS 3 Business Combinations* (revised), IAS 27 Consolidated and Separate Financial Statements (revised)** Revised standards resulting from the joint IASB-FASB Business Combinations Phase II project, amending the manner in which business combinations and changes in ownership interests in subsidiaries are accounted for. There are also consequential amendments to other standards, most notably IAS 28 Investments in Associates and IAS 31 Interests in Joint Ventures. [UPDATE] The AASB made AASB 3 Business Combinations (2008), AASB 127 Consolidated and Separate Financial Statements (2008) and AASB 2008-3 Amendments to Australian Accounting Standards arising from AASB 3 and AASB 127 at its March 2008 meeting to introduce equivalent requirements in the Australian context (see IFRS-equivalent Standards above).	IFRS 3 - (business combinations occuring after the beginning of annual reporting periods beginning) 1 July 2009 IAS 27 - (beginning) 1 July 2009	Optional	Optional	Accounting alert 2008/01 Deloitte Australia Insights podcast IAS Plus Newsletter (January 2008, PDF 122kb) IAS Plus project page
[NEW] *Amendments to IFRS 2 Share-based Payment* - Vesting Conditions and Cancellations** Amends IFRS 2 Share-based Payment to: clarify that vesting conditions are those conditions that determine whether the entity receives the services that result in the counterparty's entitlement restrict the definition of vesting conditions to include only service conditions and performance conditions amend the definition of performance conditions to require the completion of a service period in addition to specified performance targets specify that all cancellations, whether by the entity or by other parties, should receive the same accounting treatment. [UPDATE] The AASB made AASB 2008-1 Amendments to Australian Accounting Standard - Share-based Payments: Vesting Conditions and Cancellations at its February 2008 meeting to introduce equivalent amendments into AASB 2 Share-based Payment (see Amending Standards above).	(beginning) 1 January 2009	Optional	Optional	IAS Plus Newsletter(January 2008, 126kb)
[NEW] *Amendments to IAS 32 Financial Instruments: Presentation* and IAS 1 Presentation of Financial Statements - Puttable Financial Instruments and Obligations Arising on Liquidation Permits certain puttable financial instruments and instruments (or components of instruments) that impose on the entity an obligation to deliver to another party a pro-rata share of the net assets of the entity only on liquidation, to be classified as equity, subject to specified criteria being met. [UPDATE]** The AASB made AASB 2008-2 Amendments to Australian Accounting Standards - Puttable Financial Instruments and Obligations Arising on Liquidation at its March 2008 meeting to introduce equivalent amendments into AASB 132 Financial Instruments: Presentation and AASB 101 Presentation of Financial Statements (see Amending Standards above).	(beginning) 1 January 2009	Optional	Optional	IAS Plus Newsletter(February 2008, 101kb)

Corporations Act 2001 developments

The following developments related to the Corporations Act 2001 during the last 12 months have direct or indirect impacts on financial reporting:

Development	When effective	More information
*Corporations Legislation Amendment (Simpler Regulatory System) Act 2007* Amends, among other matters: the thresholds around when proprietary companies must prepare and lodge financial statements, the electronic distribution of reports to members and the disclosure of executive remuneration.	Revised financial reporting thresholds for small/large proprietary companies and electronic distribution of reports to members apply to financial years ending on or after 28 June 2007. The changes to executive remuneration disclosures apply to financial years beginning on or after 28 June 2007.	Accounting alert 2007/11 Accounting alert 2007/12 (possible changes to AASB 124 to eliminate Australian key management personnel disclosures)
*Corporations Amendment Regulation 2007 (No. 2)* Amends Regulation 2M.3.03 containing the prescribed remuneration information to be included in the remuneration report to be more consistent with the requirements of AASB 124 Related Party Disclosures while retaining the additional disclosures already prescribed by the existing legislation. Also repeals Regulation 2M.6.04 and Schedule 5B, which permitted the transfer of AASB 124 compensation information to the remuneration report.	Applies to financial years beginning on or after 30 June 2007.
ASIC Class Order [CO 07/505] Variation and revocation of financial reporting instruments Amends existing ASIC relief as a consequence of the Corporations Legislation Amendment (Simpler Regulatory System) Act 2007, including: amending the 'large group' test in ASIC Class Order [CO 98/0098] Small proprietary companies which are controlled by a foreign company but which are not part of a large group and ASIC Declaration [CO 02/1432] Registered foreign companies - financial reporting requirements to mirror the larger financial reporting thresholds for proprietary companies under the Corporations Act 2001 revoking ASIC Class Orders [CO 05/0083] Timing of auditor's declaration and [CO 05/0910] Auditor's independence declaration - exemption as the relief they provided has been incorporated into the Corporations Act 2001 consequential amendments to ASIC Class Order [98/0096] Synchronisation of financial year with foreign parent company.	Effective from 17 July 2007 (date the Class Order was gazetted).	Accounting alert 2007/13
*Corporations Amendment Regulation 2007 (No. 3)* Repeals Regulation 2M.6.03 and Schedule 5A, which permitted bank and life insurance companies to rely on the financial reporting requirements in the Banking Act 1959 and the Life Insurance Act 1995 rather than the Corporations Act 2001.	Amendments apply from 30 June 2007.	-
**Corporations (NZ Closer Economic Relations and Other Legislation Amendment Act 2007 and Corporations Amendment Regulation 2007 (No. 8)** Seeks to reduce the administrative burden of registration and the ongoing filing requirements of entities registered in prescribed countries (New Zealand) by decreasing the information of copies or documents required to be lodged with ASIC.	The amendments related to the lodgement of documents commence on a single day to be fixed by Proclamation. However, if any of the provision(s) do not commence within the period of 6 months beginning on the day on which this Act receives Royal Assent (being 21 June 2007), they commence on the first day after the end of that period.	-
*Financial Sector Legislation Amendment (Restructures) Act 2007* Deals with the introduction of 'non-operating holding companies' by financial institutions, providing these entities exemptions from certain provisions of the Corporations Act 2001 with approval of the Minister.	The Act commences from the date on which it received Royal Assent (28 June 2007).	-
[NEW] ASIC Class Order [CO 07/822] Variation of Class Order [CO 98/98] Amends Class Order [CO 98/98] to reduce the administrative burden on eligible companies relying on the relief in [CO 98/98] to lodge forms with ASIC every year. Class Order [CO 98/98] provides relief to small proprietary companies which are controlled by a foreign company from the requirement to prepare and lodge audited financial reports provided they are not part of a large group.	Effective from 18 December 2007 (date of registration)	-
[NEW] ASIC Class Order [CO 08/15] Disclosing entities - half-year financial reporting relief Relieves a disclosing entity from the requirement to prepare and lodge a half-year financial report and directors' report during the first financial year of the entity, where that first financial year lasts for 8 months or less.	Effective from 26 February 2008 (date of registration)	-

Other developments

The following are other developments that may have direct or indirect impacts on financial reporting:

the ASX has released their revised Corporate Governance Principles and Recommendations (the Principles). The new Principles continue the non-prescriptive 'if not, why not' disclosure-based approach to Australian Corporate Governance. The new ASX Principles will apply for financial years beginning on or after 1 January 2008 (i.e. for a 30 June balance date company, 30 June 2009). More information on the revised Principles is available by clicking here.
[NEW] the ASX and ASIC have cooperated on the release of two ASX Companies Updates to assist companies meet their disclosure obligations (available on the ASX website):
- Companies Update 01/08 provides guidance on the disclosure obligations of listed entities when they seek a trading halt or suspension of their securities
- Companies Update 02/08 provides guidance on the disclosure of material information relating to the financing arrangements of listed entities and the margin loans held by company directors.

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