Financial Audit Update Thursday 3 March 2011 and Thursday 10 March 2011_part8 pptx

Leases
• Future Developments (IASB ED/2010/9):
– Standard expected to be released in 2011
– Simplified retrospective approach for application
– All leases (operating and finance) on balance sheet
– Potential implications:
• Entities with high number of low value leases (e.g. car fleet)
reassess lease terms, etc at each reporting date
• Changes to key analytical measures (e.g. covenants)
• Grantor accounting in Public Private Partnerships
• Deed of Grant in Trust (DOGIT) Land
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Financial Instruments
• Minor amendments to AASB 139 for 2010-11
(not expected to have a significant impact)
• New standard - AASB 9 (to replace AASB 139)
• Effective 1 January 2013
• Amends requirements for classification,
measurement & disclosure of financial assets
• Most financial assets currently measured at
amortised cost will now need to be at fair value
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Reduced Disclosure Requirements
• New Standard - AASB 1053
• Effective from 1 July 2013
• Establishes 2 tiers for financial reporting
• Tier 2 requires fewer disclosures
• Regulator (Treasury) can mandate Tier 1
• Treasury is not allowing early adoption

• Treasury finalising policy position
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Revenue
• Future Developments (IASB ED/2010/6):
– Standard expected to be released in 2011
– Retrospective application is proposed
– Extensive changes to current revenue and
construction standards (AASB 118 and AASB 111)
– Identify performance obligations within contracts and
recognise revenue as each obligation is satisfied
• ED 180 on income from non-exchange
transactions to be revised and re-released
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Other Developments
• Exposure draft on related party disclosures in the
not-for-profit public sector expected early 2011 with
revised standard possibly around September
• Issues paper on control in the not-for-profit public
sector (phase 2) expected early 2011 with standard
issued by December 2011
• Revised standard extending relief from
consolidation, the equity method and proportionate
consolidation (ED 205) expected by mid 2011
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Thank you for attending
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