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• Interpretation 4 
  Determining whether an Arrangement contains a Lease 
   
  Operative date: 1 January 2008  
  Issue date: February 2007 
   
  Determining whether an arrangement contains a lease is based on the substance of the arrangement and requires assessment of whether:
  • the arrangement depends on the use of a specific asset or assets; and
   
  
  • the arrangement conveys a right to use the asset.
   
  Related AASB Standards: AASB 108, AASB 116, AASB 117, AASB 138
 
 

• 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 11 
  AASB 2 – Group and Treasury Share Transactions 
   
  Operative date: 1 March 2007 
  Issue date: February 2007 
   
  Share based payment transactions include those where:
  • the entity chooses or is required to buy equity instruments from another party to satisfy its obligations to its employees
  • the employee’s rights to the equity instruments were granted by the entity or its shareholder
  • the arrangement was settled by the entity or its shareholder.
   
  When a parent grants rights to its equity instruments to the employees of its subsidiary, if the arrangement is accounted for as equity-settled in the consolidated accounts, the subsidiary measures the services received using the AASB 2 requirements for equity-settled transactions, and recognises a corresponding increase in equity as a contribution from the parent. 
   
  When a subsidiary grants rights to equity instruments of its parent to its employees, this is accounted as cash-settled transaction under AASB 2.
 
 
Related AASB standards: AASB 1, AASB 2, AASB 108, AASB 132. 
 

• 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 16  
  Hedges of a Net Investment in a Foreign Operation  
   
  Operative date: 1 October 2008 
  Issue date August: August 2008 
   
  This Interpretation clarifies:
  • that the presentation currency does not create an exposure to which an entity may apply hedge accounting
  • the hedging instrument may be held by any entity within the group
  • while AASB 139 Financial Instruments: Recognition and Measurement must be applied to determine the amount that needs to be reclassified to profit or loss from the foreign currency translation reserve in respect of the hedging instrument, AASB 121 The Effects of Changes in Foreign Exchange Rates must be applied in respect of the hedged item.
 
Related AASB Standards: AASB 108, AASB 121 and AASB 139 
 

• Interpretation 18 
  Transfers of Assets from Customers 
   
  Operative date: 1 July 2009 
  Issue date: March 2009 
   
  This Interpretation deals with accounting for the transfers of items of property, plant and equipment, or transfers of cash, by entities that receive such transfers from their customers. It requires revenue to be recognised in respect of such transfers as each separately identifiable service specified in the agreement with the customer is provided. An example could be connecting the customer to a network, providing the customer with ongoing access to a supply of goods or services, or both. When applied, AASB Interpretation 18 supersedes AASB Interpretation 1017 Developer and Customer Contributions for Connection to a Price-Regulated Network.  
   
  Related AASB Standards: For AASB 1, AASB 108, AASB 116, AASB 118 and AASB 120. 
   
  
• Interpretation 107 
  Introduction of the Euro 
   
  Operative date: 1 January 2005 
  Issue date: July 2004 
   
  When countries of the European Union change their national currencies to the euro, the requirements of AASB 121 The Effects of Changes in Foreign Exchange Rates regarding translation of foreign currency transactions and financial reports is to be applied. 
   
  Related AASB standards: AASB 108, AASB 110, AASB 121, AASB 139.
 
 

• Interpretation 112 
  Consolidation - Special Purpose Entities 
   
  Operative date: 1 January 2005 
  Issue date: December 2004 
   
  An entity must consolidate a special purpose entity (SPE) when the substance of the relationship indicates that the entity controls the SPE. The Interpretation provides some guidance and examples of situations requiring control, such as:
  • The activities of the SPE are conducted on behalf of the entity according to its specific business needs, such that it obtains benefits from the SPE’s operation
  • The entity has decision-making powers to obtain the majority of the benefits from the SPE’s activities.
   
  Related AASB standards: AASB 108, AASB 127
 
 

• Interpretation 115 
  Operating Leases – Incentives 
   
  Operative date: 1 January 2005  
  Issue date: July 2004 
   
  Lease incentives under operating leases must be recognised as a reduction of the rental income (for lessors) or expense (for lessees) over the lease term. This is to be done on a straight line basis, unless another systematic basis is representative of the benefits of the leased asset over time. 
   
  Related AASB Standards: AASB 101, AASB 108, AASB 117
 
 

• Interpretation 1001 
  Consolidated Financial Reports in relation to Pre-Date-of-Transition Dual Listed Company Arrangements 
   
  Operative date: Ending 31 December 2005 
  Issue date: July 2005 
   
  Where the entities combining under the dual listed company arrangement act in substance as a single parent, consolidated financial reports are prepared by combining the financial reports of the dual listed entities.  
   
  NB When AASB 3 (revised) is operative from 1 January 2009, Interpretation 1001 will be superseded. 
   
  Related AASB standards: AASB 1, AASB 3, AASB 108, AASB 127, AASB 134.
 
 

• Interpretation 1002 
  Post-Date-of-Transition Stapling Arrangements 
   
  Operative date: Ending 31 December 2005 
  Issue date: December 2005 
   
  Entities combining under the stapling arrangement must identify an acquirer, which will prepare consolidated financial statements under AASB 127 Consolidated and Separate Financial Statements.  
  NB When AASB 3 (revised) is operative from 1 January 2009, Interpretation 1002 will be superseded. 
   
  Related AASB standards: AASB 3, AASB 5, AASB 101, AASB 108, AASB 127.
 
 

• Interpretation 1003 
  Australian Petroleum Resource Rent Tax 
   
  Operative date: Ending 30 June 2008 
  Issue date: November 2007 
   
  The Australian Petroleum Resource Rent Tax falls within the scope of AASB 112 Income Taxes, and is thus considered an income tax. 
   
  Related AASB standards: AASB 108, AASB 112.
 
 

• Interpretation 1013 
  Consolidated Financial Reports in relation to Pre-Date-of-Transition Stapling Arrangements 
   
  Operative date: Ending 31 December 2005 
  Issue date: April 2005 
   
  Entities under a stapling arrangement must identify an acquirer, which must prepare consolidated financial statements under AASB 127 Consolidated and Separate Financial Statements.  
  NB When AASB 3 (revised) is operative from 1 January 2009, Interpretation 1013 will be superseded. 
   
  Related AASB standards: AASB 1, AASB 3, AASB 108, AASB 127, AASB 134.
 
 

• 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 1055 
  Accounting for Road Earthworks 
   
  Operative date: 1 January 2005 
  Issue date: September 2004 
   
  Road earthworks must be recognised as assets in accordance with AASB 116 Property, Plant and Equipment. Road earthwork assets that are assessed (by engineering reviews) as not having a limited useful life are not depreciated. 
   
  Related AASB standards: AASB 108, AASB 116