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

• Interpretation 12 
  Service Concession Arrangements 
   
  Operative date: 1 January 2009 
  Issue date: June 2007 
   
  In a public-to-private service concession arrangement, the operator is required to:
   
  
  • Recognise and measure revenue received under the contract in accordance with AASB 118 Revenue and AASB 111 Construction Contracts
   
  
  • Allocate the consideration received to the different elements (eg construction and maintenance) of the contract, based on each identifiable element’s fair value
   
  
  • Recognise either: 
    ­
    • a financial asset, to the extent that the operator has an unconditional right to receive cash or another financial asset; or
     
    ­
    • an intangible asset, to the extent that the operator receives a right to charge users of the public service.
   
   
  Related AASB Standards: AASB 1, AASB 7, AASB 108, AASB 111, AASB 116, AASB 117, AASB 118, AASB 120, AASB 123, AASB 132, AASB 136, AASB 137, AASB 138, AASB 139

• Interpretation 13 
  Customer Loyalty Programmes 
   
  Operative date: 1 July 2008 
  Issue date: August 2007 
   
  An entity must apply paragraph 13 of AASB 118 Revenue (regarding multiple element arrangements) and account for the loyalty awards as a separate component of the sales transaction for which they are granted. This component of the consideration received is then deferred until the loyalty awards are redeemed by the customer or the obligation is taken over by a third party. An onerous contract and a liability must be recognised under AASB 137 Provisions, Contingent Liabilities and Contingent Assets when the cost of meeting the obligation to supply the awards exceeds the consideration deferred. 
   
  Related AASB Standards: AASB 108, AASB 118, AASB 137

• Interpretation 113 
  Jointly Controlled Entities – Non-Monetary Contributions by Venturers 
   
  Operative date: 1 July 2007  
  Issue date: July 2007 
   
  Under paragraph 48 of AASB 131 Interests in Joint Ventures, recognition of gains or losses on contributions of non-monetary assets in exchange for an equity interest in the jointly controlled entity (‘JCE’) is appropriate unless:
   
  
  • the significant risks and rewards of ownership of the non-monetary asset are not transferred to the JCE;
   
  
  • the gain or loss cannot be measured reliably; or
   
  
  • the contribution transaction lacks commercial substance.
   
  If one of these exceptions applies, the gain or loss is regarded as unrealised, unless a venturer receives monetary or non-monetary assets in addition to the equity interest received. 
   
  Related AASB Standards: AASB 116, AASB 118, AASB 131

• Interpretation 127 
  Evaluating the Substance of Transactions Involving the Legal Form of a Lease 
   
  Operative date: 1 January 2005 
  Issue date: July 2004 
   
  A series of transactions which involve the legal form of a lease, are to be regarded as linked, and are to be accounted for as one transaction, when the overall economic effect cannot be understood without reference to the series of transactions as a whole. The Interpretation includes indicators for assessing the substance of an arrangement, and sets out the requirements for accounting for some arrangements that do not meet the definition of a lease under AASB 117 Leases. 
   
  Related AASB Standards: AASB 111, AASB 117, AASB 118, AASB 137, AASB 139, AASB 1023

• Interpretation 131 
  Revenue – Barter Transactions Involving Advertising Services 
   
  Operative date: 1 January 2005 
  Issue date: July 2004 
   
  A seller of advertising services can reliably measure the revenue at the fair value of the services it provided in a barter transaction, by reference to non-barter advertising transactions (subject to certain criteria). 
   
  Related AASB Standards: AASB 118

• Interpretation 1017 
  Developer and Customer Contributions for Connection to a Price-Regulated Network 
   
  Operative date: 1 January 2005 
  Issue date: November 2004 
   
  Developer or customer contributions received to extend or modify a service delivery network so that the developer or customer can obtain access to the network, must be recognised as revenue when the network has been extended or modified. When the contribution is a non-current asset, the revenue is measured at the fair value of the contributed asset at the date on which the recipient obtains control of that asset. 
   
  Related AASB Standards: AASB 116, AASB 118

• Interpretation 1031 
  Accounting for the Goods and Services Tax (GST) 
   
  Operative date: 1 January 2005 
  Issue date: July 2004 
   
  Cash flows must be included in the cash flow statement on a gross basis, which means inclusive of any applicable GST. Investing and financing cash flows are presented net of the GST recoverable from or payable to the taxation authority. Any applicable GST component relating to investing and financing cash flows is classified in operating cash flows. 
   
  Related AASB Standards: AASB 102, AASB 107, AASB 108, AASB 116, AASB 118, AASB 138

• Interpretation 1038 
  Contributions by Owners Made to Wholly-Owned Public Sector Entities 
   
  Operative date: 1 July 2008 
  Issue date: December 2007 
   
  This Interpretation provides criteria to assess whether a transfer of assets (or of assets and liabilities) to wholly-owned public sector entities from other entities in the same group of entities satisfies the definition of “contributions by owners” in AASB 1004 Contributions. 
   
  Related AASB Standards: AASB 118, AASB 132, AASB 1004

• Interpretation 1042 
  Subscriber Acquisition Costs in the Telecommunications Industry 
   
  Operative date: 1 January 2005 
  Issue date: December 2004 
   
  Direct subscriber acquisition costs must be capitalised, and subsequently amortised, when they meet the definition and recognition criteria of an asset. Such costs are considered directly attributable when they are incurred to establish specific subscriber contracts, and would not have been incurred had those contracts not been entered into. These costs do not include the cost of providing telephones to the subscribers. 
   
  Related AASB Standards: AASB 118, AASB 136, AASB 138

• Interpretation 1052 
  Tax Consolidation Accounting 
   
  Operative date: Ending 31 December 2005 
  Issue date: June 2005 
   
  This Interpretation specifies the accounting of a tax consolidated group, which includes:
   
  
  • All Tax Funding Arrangement (TFA) amounts are recognised as inter-entity balances
   
  
  • Each subsidiary in the group must recognise its own current and deferred taxes
   
  
  • Consolidated current and deferred tax amounts for the group is allocated using a systematic approach consistent with the principles of AASB 112 Income Taxes, such as the ‘stand-alone taxpayer’ approach and the ‘separate taxpayer within group’ approach
   
  
  • Current tax liabilities (or assets) and deferred tax assets recognised by a subsidiary for the period are transferred to the head entity
   
  
  • Differences between the amounts transferred and amounts contributed under a TFA will be recognised in equity.
   
   
  Related AASB Standards: AASB 1, AASB 112, AASB 118, AASB 124, AASB 127, AASB 137