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Monthly roundup - December 2011

Staying on top of developments

Author: Deepesh Malik and Debbie Hankey, Accounting Technical Group

December 2011 edition
Issued 13 January 2011

In this edition:

Monthly highlights

Preparing for the December reporting season

For those preparing for the December reporting season, we have released the following tools that may be of assistance to you

The Australian Securities & Investment Commission (ASIC) has also released the results of its reviews of financial reports for the year ended 30 June 2011 and announced its areas of focus for 31 December 2011 financial reports. ASIC’s future focus areas will include

  • asset values and going concern assessments, including adequate disclosure of material assumptions;
  • consolidation decisions and off balance sheet arrangements; and
  • proper disclosure of segment information in a manner that enables useful assessment of the separate businesses.

For the entities using non-IFRS information in their financial reports, director’s reports and market releases, it would be worthwhile to look into the recently issued ASIC Regulatory Guide 230 Disclosing non-IFRS financial information (PDF 383kb). ASIC intends to ensure proper balanced use of non-IFRS information, and will be monitoring financial reports and releases in this regard (Deloitte Accounting alert)


IASB developments and the year ahead

The IASB has released an updated work plan, dated 20 December 2011. A number of projects have been deferred, the expected timing of other projects more precisely defined and deadlines for the finalisation of IFRSs on leases and revenue recognition projects now not explicitly stated within the timeframes outlined (so now potentially not expected before the end of 2012). A review draft of general hedge accounting requirements is now expected in the first quarter of 2012 with the targeted issue of the revisions to IFRS 9 in the second quarter of 2012 (potentially too late for early adoption by entities with June 2012 year ends). Companies should continue to monitor the IASB progress on these major projects so they are in a position to take advantage of opportunities from early adoption in the case of hedge accounting or understand the potentially significant impacts on their organisations from the implementation of standards such as leases and revenue.

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 December 2011 financial reporting cycle summary.)

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

Exposure Draft ED/2011/7 Transition Guidance (Proposed amendments to IFRS 10) 

Address the transition guidance in IFRS 10 Consolidated Financial Statements by clarifying when retrospective application is required.

Comments due by 21 March 2012

ED/2011/7 (PDF 170kb)

IFRS in Focus (PDF 68kb)

Offsetting Financial Assets and Financial Liabilities (Amendments to IAS 32)*

Address inconsistencies in current practice when applying the offsetting criteria in IAS 32 Financial Instruments: Presentation.

Applicable to annual periods beginning on or after 1 January 2014

Deloitte Podcast (26 mins 11.5 mbs)

IFRS in Focus (PDF 71kb)

Disclosures – Offsetting Financial Assets and Financial Liabilities (Amendments to IFRS 7)*

Aims to bridge differences in the offsetting reporting requirements of IFRSs and US GAAP by having common offsetting disclosure requirements

Expanded disclosures to include both the gross and the net amounts for items offset in accordance with legally enforceable netting arrangements and expanded information about the collateral pledged and held in such arrangements.

Applicable to annual periods beginning on or after 1 January 2013

Deloitte Podcast (26 mins 11.5 mbs)

IFRS in Focus (PDF 71kb)

Mandatory Effective Date of IFRS 9 and Transition Disclosures (Amendments to IFRS 9 and IFRS 7)*

Defers the mandatory effective date of both the 2009 and 2010 versions of IFRS 9 Financial Instruments to annual periods beginning on or after 1 January 2015

Instead of requiring restatement of comparative financial statements, entities are either permitted or required to provide modified disclosures on transition from IAS 39 to IFRS 9 on the basis of the entity's date of adoption and if the entity chooses to restate prior periods.

Applicable to annual periods beginning on or after 1 January 2015; early application permitted

Deloitte Podcast (12 mins 5.5 mbs)

IFRS in Focus (PDF 67kb)

* Equivalent pronouncement not yet issued by the AASB

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

Tier 2 Supplement to ED 222  Revenue from Contracts with Customers 

Sets out the disclosures proposed in AASB ED 222 from which it is proposed entities applying Tier 2 reporting requirements should be exempt.

Comments due to the AASB by 9 February 2012

Tier 2 Supplement to ED 222 (PDF 261kb)

ED 223 Superannuation Entities 

A further step in the comprehensive review of the general purpose financial reporting requirements applicable to superannuation entities being conducted in light of developments in the superannuation industry since AAS 25 Financial Reporting by Superannuation Plans was originally promulgated and the introduction of International Financial Reporting Standards (IFRSs).

Open for comment until 30 April 2012 ED 223 (PDF 868kb)

ED 224 Transition Guidance (proposed amendments to AASB 10 Consolidated Financial Statements) 

Incorporates IASB ED/2011/7 and proposes amendments to AASB 10 Consolidated Financial Statements with the objective of providing clarification regarding the transition requirements upon implementation of AASB 10.

Comments due to the AASB by 22 February 2012 and to the IASB by 21 March 2012 ED 224 (PDF 297kb)

AASB 2011-13 Amendments to Australian Accounting Standard – Improvements to AASB 1049

Clarifies some of the requirements in AASB 1049 Whole of Government and General Government Sector Financial Reporting

Effective for annual periods beginning on or after 1 July 2012, with early application permitted AASB 2011-3 (PDF 668kb)

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
7-8 December 2011

Topics discussed in detail include:

  • Control in the NFP Public and Private Sector
  • Accounting for the Proposed Minerals Resource Rent Tax
AASB alert (PDF 282kb)
IASB regular meeting
13-16 December 2011

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

Tuesday, 13 December 2011

Wednesday, 14 December 2011

Thursday, 15 December 2011

Friday, 16 December 2011

Detailed Deloitte Observer notes

IASB update (PDF 229kb)


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
Other publications of interest
Deloitte comment letters
  • Deloitte Comment Letter (PDF 32kb) to the SME Implementation Group on its Third batch of SME Implementation Group questions and answer documents
  • Deloitte Comment Letter (PDF 29kb) to the IFRS Interpretations Committee on its tentative decision not to take onto the Committee's agenda requests for Interpretations of IAS 19 Employee Benefits , with respect to providing guidance on the classification of 'Altersteilzeit' (ATZ) plans under the revised version of IAS 19 issued in June 2011
  • Deloitte Comment Letter (PDF 83kb) to the International Integrated Reporting Council (IIRC) on its Discussion Paper Towards Integrated Reporting — Communicating Value in the 21st Century
  • Deloitte Comment Letter (PDF 31kb) to the International Accounting Standards Board (IASB) on its Exposure Draft ED 2011/5 Government Loans — Proposed amendments to IFRS 1.
Deloitte Webcasts and Podcasts
  • Integrated reporting podcast (18:30 mins 8 mbs) discuss the concept of 'integrated reporting' and the International Integrated Reporting Council's (IIRC) Discussion Paper Towards Integrated Reporting – Communicating Value in the 21st Century
  • Deferral of the effective date of IFRS 9 (12 mins 5.5 mbs) podcast on the deferral of mandatory effective date IFRS 9 Financial Instruments to annual periods beginning on or after 1 January 2015
  • Offsetting financial assets and liabilities (26 mins 11.5 mbs) discuss the recently issued amendments relating to offsetting of financial assets and financial liabilities

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 December 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 issued tentative agenda decisions dealing with accounting issues arising from a proposed 'Mineral Resource Rent Tax' (MRRT) and extension of 'Petroleum Resource Rent Tax' (PRRT) that are currently being considered by the Australian Parliament (IAS plus article)
  • The federal government issued a discussion paper (PDF 945kb) that considers the stakeholders concerns over the changes made to the Corporations Act by the Corporations Amendment (Corporate Reporting Reform) Act 2010. The discussion paper explores certain options for amending the Dividend Test (solvency). It also considers if there is any need for amendments to the parent entity reporting requirements, and the conditions for changing the financial year of a company to correct some inconsistency in the Act.
International Accounting Standards Board
  • The SME Implementation Group (SMEIG) has published two final questions and answers (Q&As) on the IFRS for SMEs (IAS plus article)
External webcasts and Podcasts
  • Revenue from Contracts with Customers The above webcasts review the main proposals of the revised exposure draft on revenue recognition released by the boards in November 2011. It also describes how stakeholders can comment on the proposals
  • Insurance contracts podcast (22 mins mp3) on the current state of debate and the discussion held in the recent IASB meeting in December 2011
  • IASB meeting podcast (20 mins mp3) for the December 2011 board meeting. The topics covered include IFRS 9 impairment, classification and measurement, leases and insurance contracts.
Other global news
  • The European Financial Reporting Advisory Group (EFRAG) in its letter to the IASB, has called for the deferral of the effective date of the 'suite of standards' on consolidation, joint ventures and disclosures (IAS Plus article)
  • International Valuation Standards Council (IVSC) update of recent developments (IAS Plus article)
  • The European Financial Reporting Advisory Group (EFRAG) and the Financial Reporting Council's Accounting Standards Board (UK ASB) have issued discussion paper Improving the Financial Reporting of Income Tax (IAS Plus article)

Related links

Related links

  • Monthly roundup - January 2014
    ASIC has extended Class Order [CO 13/1050] which allows issuers of stapled securities (stapled entities) to continue to present consolidated or combined financial statements
  • Monthly roundup - January 2012
    Financial reporting developments during January 2012. Monthly highlights include the IASB and the FASB discussion to reduce differences in classification and measurement models for financial instruments.
  • 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 - December 2012
    Financial reporting developments during December 2012. Monthly highlights discuss the key considerations for the December 2012 reporting season and a series of pronouncements by the AASB
  • 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 - May 2010
    Summary of developments in financial reporting during May 2010. Monthly highlight discusses the financial reporting impacts of recent and proposed tax changes.


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