AASB Meeting 126 held 5th and 6th September 2012

The latest ASSB meeting was held in Melbourne on September 5th and 6th. A number of issues and topics were discussed.

Amongst other issues the following was discussed;

  • Service concession arrangements for grantors.

“Consistent with its earlier decision to develop an ED based on IPSAS 32 Service Concession Arrangements: Grantor, the Board continued its consideration of how IPSAS 32 should be modified to suit the Australian environment. In particular, the Board considered the need for additional guidance on whether a grantor controls a service concession asset in circumstances in which a third-party regulator is involved.”

  • Deferral of AASB 10 for the Not-for-Profit Public and Private Sectors (NFPs).

The Board decided to defer the mandatory application date of AASB 10 Consolidated Financial Statements, AASB 11 Joint Arrangements, AASB 12 Disclosure of Interests in Other Entities, AASB 127 Separate Financial Statements and AASB 128 Investments in Associates and Joint Ventures for NFP entities from 1 January 2013 to 1 January 2014. This decision acknowledges that the Board’s ED to propose Australian NFP entity implementation guidance for inclusion in AASB 10 has not yet been issued for comment, so there might be insufficient time for the Board to consider submissions on the ED in time for incorporating any relevant implementation guidance prior to 1 January 2013. The deferral will be included in an amending Standard that will also address the IASB’s recent amendments to the transition requirements in those Standards.

The Board also decided that the existing prohibition on early application of the Standards by NFP entities will not be extended beyond the present limit of annual reporting periods beginning before 1 January 2013. Therefore, NFP entities will be able to apply the Standards early to annual reporting periods beginning on or after 1 January 2013 but before 1 January 2014 (such as the 2013/14 financial year). The Board noted NFP entities may wish to do this in order to maintain IFRS compliance, even before the amendments expected to arise from the Board’s ED proposing NFP entity implementation guidance have been finalised.

The ED proposing Australian NFP entity implementation guidance for inclusion in AASB 10 is expected to be issued before the end of this year.

Click here for full details of the meeting.

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