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• Interpretation 1 
  Changes in Existing Decommissioning, Restoration and Similar Liabilities 
   
  Operative date: 1 January 2009 
  Issue date: June 2007 
   
  Changes in the measurement of an existing decommissioning, restoration and similar liability that result from changes in the estimated timing or amount of the outflow of resources embodying economic benefits required to settle the obligation, or a change in the discount rate are accounted for as follows:
   
  
  • If the related asset is measured at cost, changes are capitalised as part of cost of the asset and depreciated over the remaining useful life.
   
  
  • If the related asset is revalued, changes are recognised in the asset revaluation reserve, similar to other revaluation movements. (NB for not-for-profit entities, this requirement is applied to a class of assets, consistent with AASB 116 Property, Plant & Equipment).
   
  The increase in the liability that reflects the passage of time is recognised in profit or loss as a finance cost. 
   
  Related AASB standards: AASB 101, AASB 116, AASB 123, AASB 136, AASB 137.
 
 

• Interpretation 5 
  Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds 
   
  Operative date: 1 January 2006 
  Issue date: June 2005 
   
  If the contributor controls, jointly controls or significant influences a fund, it accounts for the fund in accordance with the relevant standard (i.e. AASB 127 Consolidated and Separate Financial Statements, AASB 128 Investments in Associates or AASB 131 Interests in Joint Ventures). If these do not apply, a contributor must recognise the right to receive reimbursement from a fund in accordance with AASB 137. When a contributor has an obligation to make potential additional contributions to a fund, this is a contingent liability under AASB 137 Provisions, Contingent Liabilities and Contingent Assets. 
   
  Related AASB standards: AASB 108, AASB 127, AASB 128, AASB 131, AASB 137, AASB 139.
 
 

• Interpretation 6 
  Liabilities arising from Participating in a Specific Market – Waste Electrical and Electronic Equipment 
   
  Operative date: 1 December 2005  
  Issue date: October 2005 
   
  This Interpretation clarifies when a liability arises under the European Union’s Directive on Waste Electrical and Electronic Equipment in relation to waste management costs for the decommissioning of electrical and electronic equipment sold to private households prior to 13 August 2005. The event giving rise to the liability for such costs is participation in the market by a producer of that type of equipment in the measurement period specified in the relevant national legislation. 
   
  Related AASB standards: AASB 108, AASB 137.
 
 

• 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 14 
  AASB 119 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction 
   
  Operative date: 1 January 2008 
  Issue date: August 2007 
   
  This Interpretation clarifies how:
   
  
  • To determine the limit on a defined benefit asset
   
  
  • The pension asset or liability may be affected when there is a statutory or contractual minimum funding requirement.
   
  Related AASB standards: AASB 101, AASB 108, AASB 119, AASB 137.
 
 

• 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 129 
  Service Concession Arrangements: Disclosures 
   
  Operative date: 1 January 2008 
  Issue date: February 2007 
   
  This Interpretation provides disclosure requirements for grantors and operators, regarding service concession arrangements. Disclosures include a description of the arrangement and significant terms that may affect the amount, timing and certainty of future cash flows. 
   
  Related AASB standards: AASB 101, AASB 116, AASB 117, AASB 137, AASB 138.
 
 

• Interpretation 1019 
  The Superannuation Contributions Surcharge 
   
  Operative date: 1 January 2005 
  Issue date: September 2004 
   
  A superannuation plan must recognise a liability for the superannuation contribution surcharge when the entity has a present obligation as a result of a past event, it is probable that an outflow of resources is required to settle the obligation and a reliable estimate of the obligation can be made.  
   
  Related AASB standards: AASB 137, AAS 25.
 
 

• Interpretation 1030 
  Depreciation of Long-Lived Physical Assets: Condition-Based Depreciation and Related Methods 
   
  Operative date: 1 January 2005 
  Issue date: September 2004 
   
  This Interpretation identifies characteristics of condition-based depreciation and related methods that do not satisfy the requirements of AASB 116 Property, Plant and Equipment. 
   
  Related AASB standards: AASB 116, AASB 137.
 
 

• Interpretation 1047 
  Professional Indemnity Claims Liabilities in Medical Defence Organisations 
   
  Operative date: 1 January 2005 
  Issue date: November 2004 
   
  Medical defence organisations (MDOs) must recognise liabilities in relation to unpaid reported claims and, in certain circumstances, incurred but not reported claims, provided that the entity has a present obligation due to a past event, an outflow of economic benefits to settle the obligation is probable and a reliable estimate can be determined. 
   
  Related AASB standards: AASB 137, AASB 1023.
 
 

• 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.