AASB Issues New Standards Arising from the Trans-Tasman Convergence Project

The Australian Accounting Standards Board (AASB) has issued the following new and amending Standards:

• AASB 1054 "Australian Additional Disclosures";
• AASB 2011-1 "Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project"; and
• AASB 2011-2 "Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project - Reduced Disclosure Requirements".

These Standards are a consequence of Phase 1 of the joint Trans-Tasman Convergence Project of the AASB and the New Zealand Financial Reporting Standards Board (FRSB), aimed at harmonising Australian Accounting Standards and New Zealand equivalents to International Financial Reporting Standards (NZ IFRSs), with a focus on eliminating differences between the Standards in each jurisdiction relating to publicly accountable for-profit entities.

AASB 1054

AASB 1054 sets out the Australian-specific disclosures for entities that have adopted Australian Accounting Standards. This Standard contains disclosure requirements that are additional to IFRSs in areas such as:

• compliance with Australian Accounting Standards;
• the nature of financial statements (general purpose or special purpose);
  audit fees;
• imputation (franking) credits; and
• the reconciliation of net operating cash flow to profit (loss).

AASB 2011-1

AASB 2011-1 makes amendments to a range of Australian Accounting Standards and Interpretations for the purpose of closer alignment to IFRSs and harmonisation between Australian and New Zealand Standards. The Standard deletes various Australian-specific guidance and disclosures from other Standards (Australian-specific disclosures retained are now contained in AASB 1054), and aligns the wording used to that adopted in IFRSs.

The "true and fair override" is introduced into AASB 101 "Presentation of Financial Statements", but its application in the Australian context is limited by an additional "Aus" paragraph.

AASB 2011-2

AASB 2011-2 establishes reduced disclosure requirements for entities preparing general purpose financial statements under Australian Accounting Standards - Reduced Disclosure Requirements (RDR) in relation to the Australian additional disclosures arising from the Trans-Tasman Convergence Project.

Application date and early adoption

AASB 1054 and AASB 2011-1 are applicable to annual reporting periods beginning on or after 1 July 2011. Early adoption of AASB 1054 and AASB 2011-1 is permitted for annual reporting periods beginning on or after 1 January 2005 but before 1 July 2011, provided that both standards are adopted early for the same period.

The application date of AASB 2011-2 aligns with AASB 1053 "Application of Tiers of Australian Accounting Standards" and so is applicable to annual reporting periods beginning on or after 1 July 2013. Early adoption of AASB 2011-2 is permitted for annual reporting periods beginning on or after 1 July 2009 but before 1 July 2013, provided that AASB 1053, AASB 1054 and AASB 2011‑1 are also adopted for the same period.