Summary 
Developments, Key Differences & History 
Compared to IFRS 
Interpretations 
Rejection Notices 
Questions & Answers 
Articles 
AASB website 

• AASB Developments
 
 

• AASB 2007-10 Further Amendments to Australian Accounting Standards arising from AASB 101 makes further consequential amendments to change the term ‘general purpose financial report’ to ‘general purpose financial statements’ and the term ‘financial report’ to ‘financial statements’ to better align with IFRS terminology. It is applicable from 1 January 2009, with early application permitted, provided the revised AASB 101 is also early adopted.
 
 

• AASB 2008-2 Amendments to Australian Accounting Standards – Puttable Financial Instruments and Obligations arising on Liquidation was issued in March 2008 and is applicable from 1 January 2009, with early adoption permitted from 1 January 2005.
 
 

• AASB 2008-3 Amendments to Australian Accounting Standards arising from AASB 3 and AASB 127 was issued in March 2008 and is applicable from 1 July 2009, with early adoption permitted from 30 June 2007, provided the revised AASB 3 and the amendments to AASB 127 are also early adopted.
 
 

• AASB 2008-5 Amendments to Australian Accounting Standards arising from Annual Improvements Project was issued in July 2008 and amends paragraph 3 and adds paragraph 44D. It is applicable from 1 January 2009, with early application permitted. If applied early, the amendments to paragraph 1 of AASB 128, paragraph 1 of AASB 131 and paragraph 4 of AASB 132 must also be applied.
 
 

• AASB 2008-10 Amendments to Australian accounting standards - Reclassification of Financial Assets was issued in October 2008 in response to the international credit crisis and to reduce differences between IFRS and USGAAP, The changes amend AASB 139 to allow non derivative financial assets held for trading and available for sale to be reclassified in rare circumstances and amended AASB 7 to require specific disclosures in relation to the reclassifications when the AASB 139 amendments are applied. The changes apply from 1 July 2008 and cannot be applied to financial reporting periods that ended before that date.
 

• IASB Developments
 
In response to credit crisis, the IASB is currently engaged in a review of the effectiveness of IAS 7. As part of this process the following major steps have been taken: 
 

• the IASB made changes to IFRS 7 and 39 equivalent to those contained in omnibus 2008-10 explained above.
 
 

• the IASB has also published for public comment further proposals to amend IAS 7 to improve the information available to investors and others about fair value measurements of financial instruments and liquidity risk. The proposals form part of the IASB’s response to the credit crisis and follow recommendations of the Financial Stability Forum. They also reflect discussions by the IASB’s Expert Advisory Panel on measuring and disclosing fair values of financial instruments when markets are no longer active.
 
The exposure draft Improving Disclosures about Financial Instruments (proposed amendments to IFRS 7) is open for public comment until 15 December and is available on the IASB website. If approved the amendments are expected to apply to financial reporting periods beginning on or after 1 July 2009

• No relief for parent entities from providing AASB 7 disclosures
 

• Disclosure of carrying amounts for each of the categories in AASB 139
 

• A reconciliation of changes of the allowance account for credit losses for each class of financial asset
 

• Separate disclosure of the net gain or loss for each category of financial instrument
 

• Disclosure of criteria for determining when a financial asset is impaired and when a financial asset is classified as available for sale
 

• Disclosure of gains or losses on the hedging instrument and hedged item of fair value hedges
 

• Disclosure of ineffectiveness recognised in profit or loss from cash flow hedges and hedges of net investments in foreign operations
 

• Day one profit or loss disclosures
 

• When fair value cannot be reliably measured, disclosure of whether and how the entity intends to dispose of such instruments
 

• Qualitative risk disclosures are expanded and quantitative risk disclosures are introduced based on information provided to key management personnel
 

• Disclosure of a maturity analysis for financial liabilities showing all of the remaining contractual cash flows on an undiscounted basis
 

• Information about financial assets that are either past due or impaired
 

• Sensitivity analysis of market risks and how changes in these risks would have impacted profit or loss and equity in the period

• August 2005: AASB 7 was issued, replacing AASB 130 Disclosures in the Financial Statements of Banks and Similar Financial Institutions and the disclosure requirements in paragraphs 51 to 95 of AASB 132 Financial Instruments: Disclosure and Presentation.
 
 

• April 2007: AASB 2007-4 Amendments to Australian Accounting Standards arising from ED 151 was issued. This standard is applicable from 1 July 2007, with early adoption permitted from 1 January 2005.
 
 

• September 2007: AASB 2007-8 was issued and makes amendments arising from the issuance of the revised AASB 101. It is applicable from 1 January 2009, with early adoption permitted from 1 January 2005, provided the revised AASB 101 is also early adopted.