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Monthly roundup - April 2013

Staying on top of developments

Author: Deepesh Malik and Moana Overton, Accounting Technical Group

April 2013 edition
Issued 06 May 2013

In this edition:

Monthly highlights

Key considerations for financial reporting at June 2013

June 2013 Annual financial reports

New and amended reporting requirements that must be applied for the first time for the June 2013 year-end include:

  • Amendment to AASB 112 Income taxes, that may affect measurement of deferred taxes in relation to Investment properties (Fair value model), as the amendments establish a rebuttable presumption that the carrying amount of an investment property will be recovered entirely through sale
  • Amendments regarding the presentation of items of other comprehensive income (OCI) with the requirement to split items of OCI (and tax thereon) between those that will or will not be recycled to profit or loss
  • Minor amendments to AASB 1049 Whole of government and general government sector financial reporting

June 2013 Interim financial reports – New mandatory requirements

2013 is a challenging year from the point of view of new accounting changes that will see application of new standards in some major areas like consolidation, joint arrangements, fair value measurements, and employee benefits, including extensive disclosure requirements. Some of the new standards/interpretations with a mandatory effective date of 1 January 2013 are:

  • AASB 10 Consolidated Financial Statements
  • AASB 11 Joint Arrangements
  • AASB 12 Disclosure of Interests in Other Entities
  • AASB 13 Fair Value Measurements
  • AASB 119 (2011) Employee Benefits
  • AASB 127 (2011) Separate Financial Statements
  • AASB 128 (2011) Investments in Associates and Joint Ventures
  • INT 20 Stripping Costs in the Production Phase of a Surface Mine

For most Australian companies with June year-ends, it would mean that the first time application will be for year ending 30 June 2014 with comparatives required for 30 June 2013. For companies with December year-ends, the new changes have to be accounted for in their interim June 2013 reporting. It is imperative that entities understand, assess and ensure that relevant policies and functionalities are in place to implement and comply with the changes.

Preparing for the June reporting season 

For those preparing for the June reporting season, Deloitte has released

  • Illustrative financial reports (June 2013) that illustrates disclosures required in annual financial statements under Australian Accounting Standards and related Australian reporting requirements, for financial years ending on or after 30 June 2013
  • What’s new in the June 2013 reporting period that provides a high level overview of new and revised financial reporting requirements that need to be considered for financial reporting periods ending on 30 June 2013. 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 June reporting close process.


New pronouncements

(A listing of new accounting standards, interpretations, exposure drafts, discussion papers and similar documents issued during the month by the AASB and IASB/IFRIC, along with other IFRS-related documents by other bodies that may be of interest and related links to Deloitte publications and alerts. See also our What’s new in the June 2013 financial reporting cycle summary.)

International Accounting Standards Board (IASB)
Pronouncement Key dates More information

Exposure Draft ED/2013/5 Regulatory Deferral Accounts

Proposed interim standard - intended to allow entities that currently recognise regulatory assets and regulatory liabilities in accordance with their previous GAAP to continue to recognise the effects of rate regulation under IFRSs until the longer term rate-regulated activities project is completed

Comments due by 4 September 2013

IFRS in focus (PDF)

Australian Accounting Standards Board (AASB)
Pronouncement Key dates More information

No new significant pronouncements were issued by the AASB in April 2013.

   

Standard setter meetings

(A listing of meetings of various standard setters during the month or where documents were issued during the month in respect of the previous month’s meetings, with links to our analysis, agenda papers and so on)

Meeting Highlights More information
AASB regular meeting
10 April 2013

Key issues discussed include:

  • Possible Policy Implications of Research into SPFSs and a Road Map to Implementation
  • Superannuation Entities
  • IASB Proposals for Limited Amendments to IFRSs
  • Revenue from Contracts with Customers
  • IFRS Interpretations Committee Update
  • IASB Conceptual Framework Project Update
  • IPSASB Public Sector Conceptual Framework Proposals
  • Investment Entities
AASB alert (PDF)
IASB regular meeting
23-25 April 2013

Topics discussed were as follows (click on the links for direct access to the Deloitte observer notes for that topic):

Deloitte Observer notes

 

New Deloitte publications

(Key IFRS-related and other publications issued by Deloitte during the month, not covered elsewhere. You can find full details and back issues of our various publications by following these links: Accounting alerts, IAS Plus publications, IFRS in Focus Newsletters, Webcasts, and Podcasts)

IFRS publications
Deloitte webcasts
Deloitte comment letters
  • Deloitte comment letter on the IASB Exposure Draft ED/2012/7 'Acquisition of an Interest in a Joint Operation'
  • Deloitte comment letter on the IASB Exposure Draft ED/2012/6 'Sale or Contribution of Assets between an Investor and its Associate or Joint Venture'
  • Deloitte comment letter on the IASB tentative agenda decision on IFRS 2 - Intercompany recharges
  • Deloitte comment letter on the IASB tentative agenda decision on IAS 28 & IFRS 3 - Associates and common control
  • Deloitte comment letter on the IASB tentative agenda decision on IAS 7 - Identification of cash equivalents
  • Deloitte comment letter on the IASB Exposure Draft on novation of derivatives and continuation of hedge accounting (ED/2013/2)
  • Deloitte comment letter on the IASB Exposure Draft on clarification of acceptable methods of depreciation and amortisation (ED/2012/5)

Other developments

(A brief listing of other financial reporting developments during the month. A full summary of all IFRS-related developments can be found in our April historical summary on IAS Plus. You can also subscribe to our Deloitte IAS Plus RSS feed to be kept informed of developments as they happen)

Australian-specific topics
  • The Australian Accounting Standards Board (AASB) has published an updated version of staff paper on Accounting for Carbon Tax from the Emitters' Perspective - 'Possible Financial Reporting Implications of the Fixed Price Phase of the Carbon Pricing Mechanism for Emitter Entities' (PDF)
  • The AASB has issued ITC 28 (PDF) 'Invitation to Comment on IASB Request for Information on Rate Regulation'. Comments to the AASB are requested by 7 May 2013 and to the IASB by 30 May 2013
  • The Treasury has released a draft Corporations Legislation Amendment Regulation 2013 and one major proposal is to insert the requirements of paragraph 'Aus 29' of AASB 124 'Related Party Transactions' into the Corporations Regulations 2001 to ensure the disclosure requirements continue to be operative, after AASB 2011-4 comes into effect. (Note: AASB 2011-4 (issued July 2011) amends AASB 124 to remove the individual Key Management Personnel (KMP) disclosures required by Aus specific paragraphs, and is applicable to annual reporting periods beginning on or after 1 July 2013).
International Accounting Standards Board
  • The IASB has updated its work plan. Following its April meeting, the IASB changed the timing of expected milestones in macro hedge accounting, rate-regulated activities, and revenue recognition (IAS Plus article)
  • The IASB has announced the members to its consultative group for the Rate-regulated Activities research project. Australia is represented by John Leotta of Deloitte (IAS Plus article)
  • IASB podcast (mp3, 43MB) on expected credit losses clarifies certain aspects of Exposure Draft 'Financial Instruments: Expected Credit Losses' and answers the most frequently asked questions that the IASB staff has received on the proposal.
Other global news
  • The European Financial Reporting Advisory Group (EFRAG) has issued draft comment letter on the following:
    • IASB's Exposure Draft ED/2013/3 'Financial Instruments: Expected Credit Losses' (IAS Plus article)
    • IASB's Exposure Draft ED/2013/4 'Defined Benefit Plans: Employee Contributions (Proposed amendments to IAS 19)' (IAS Plus article)
  • The International Public Sector Accounting Standards Board (IPSASB) has published a further exposure draft in its multi-phase Conceptual Framework project. The latest exposure draft deals with the concept of 'presentation' in general purpose financial reports (GPFRs) (IAS Plus article)
  • The European Commission has published proposed amendments to European accounting legislation in order to require certain large companies to provide additional information on social and environmental matters (IAS Plus article)
  • The International Integrated Reporting Council (IIRC) has released the Consultation Draft of its proposed International Integrated Reporting Framework (IAS Plus article).

Related links

Related links

  • Monthly roundup - December 2013
    Key considerations for the December reporting season and ASIC findings from 30 June 2013 financial reports.
  • Monthly roundup - July 2013
    Financial reporting developments during July 2013. Monthly highlights discuss the ASIC areas of focus for July 2013 reporting period.
  • Monthly roundup - June 2013
    Financial reporting developments during June 2013. Monthly highlights discuss the ASIC areas of focus for June 2013 reporting period.
  • Monthly roundup - January 2013
    Financial reporting developments during January 2013. Monthly highlights discuss the EFRAG concerns on Hedge Accounting proposals and identification of a 'business' in a transaction
  • Monthly roundup - January 2009
  • Monthly roundup - March 2011
    Financial reporting developments during March 2011. Monthly highlight discusses the updated IASB work plan, ASIC's proposed guidance on additional financial information and a joint UK/NZ project to reduce disclosures under IFRS.
  • Monthly roundup - March 2009
  • Monthly roundup - August 2010
    Summary of developments in financial reporting during August 2010. Monthly highlight discusses the possible impact of changes in the IASB and FASB chairs on global standard setting.
  • Monthly roundup - June 2010
    Summary of developments in financial reporting during June 2010. Monthly highlight discusses recent financial reporting reform.
  • Monthly roundup - April 2010
    Summary of developments in financial reporting during April 2010. Monthly highlight discusses the AASB's April meeting.

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