Federal Register of Legislation - Australian Government

Primary content

AASB 127 Standards/Accounting & Auditing as made
This Accounting Standard is to prescribe the accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates when an entity prepares separate financial statements.
Administered by: Treasury
General Comments: When applied or operative, this Standard, together with AASB 10, supersedes AASB 127 - Consolidated and Separate Financial Statements - March 2008, as amended).
Exempt from sunsetting by the Legislative Instruments Regulations 2004 Sch 3 item 12
Registered 29 Sep 2011
Tabling HistoryDate
Tabled HR11-Oct-2011
Tabled Senate11-Oct-2011
Date of repeal 31 Dec 2015
Repealed by AASB 127 - Separate Financial Statements - August 2015

Explanatory Statement

 

 

Accounting Standard AASB 127
Separate Financial Statements

August2011

 

 

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EXPLANATORY STATEMENT

Reasons for Issuing AASB 127

The International Accounting Standards Board (IASB) has issued IAS 27Separate Financial Statementswhich supersedes, together with IFRS 10 Consolidated Financial Statements, IAS 27 Consolidated and Separate Financial Statements (March 2008, as amended) for annual reporting periods beginning on or after 1 January 2013.  The AASB needs to issue AASB 127Separate Financial Statementsto enable Australian reporting entities that have subsidiaries, joint ventures or associates to continue to satisfyInternational Financial Reporting Standardswhen preparing separate financial statements.

Main Features of AASB 127

The Standard contains accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates when an entity prepares separate financial statements.  The key change is the relocation of the requirements relating to consolidated financial statements to AASB 10 Consolidated Financial Statements.  There have been minimal changes in the requirements concerning separate financial statements.

Application Date

AASB 127is applicable to annual reporting periods beginning on or after 1 January2013.  This Standard may be applied by for-profit entities, but not by not-for-profit entities, to annual reporting periods beginning on or after 1 January 2005 but before 1 January 2013.  The AASB will consider promulgating additional guidance for not-for-profit entities by 2013.  If a for-profit entity applies this Standard to such an annual reporting period, it shall disclose that fact and apply AASB 10 Consolidated Financial Statements, AASB 11 Joint Arrangements, AASB 12 Disclosure of Interests in Other Entities, and AASB 128 Investments in Associates and Joint Ventures (August 2011),at the same time.

Consultation Prior to Issuing this Standard

The AASB issued Exposure Draft ED 171 Consolidated Financial Statements in December 2008.  ED 171 reproduced the proposals included in the IASB’s Exposure Draft ED 10Consolidated Financial Statements (December 2008) without amendment.  The objective of the Exposure Draft was to publish a single IFRS on consolidation to replace the consolidation requirements in IAS 27 Consolidated and Separate Financial Statements.  No changes were proposed to the requirements concerning separate financial statements.

The AASB received seven submissions from Australian constituents on ED 171.  Submissions received were generally supportive.

A Regulation Impact Statement has not been prepared in connection with the issuance of AASB 127 as the amendments made do not have a substantial direct or indirect impact on business or competition.