Federal Register of Legislation - Australian Government

Primary content

AASB 1057 Standards/Accounting & Auditing as amended, taking into account amendments up to AASB 1058 - Income of Not-for-Profit Entities - December 2016
Administered by: Treasury
Registered 12 Jun 2019
Start Date 31 Dec 2018

Compiled AASB Standard

AASB 1057

 

This compiled Standard applies to annual periods beginning on or after 1 January 2019 but before 1 January 2021.  Earlier application is permitted for annual periods beginning before 1 January 2019.  It incorporates relevant amendments made up to and including 9 December 2016.

Prepared on 30 May 2019 by the staff of the Australian Accounting Standards Board.Title: AASB logo - Description: AASB logo with Australian crest and text identifying the Australian Government and the Australian Accounting Standards Board.

Compilation no. 2

Compilation date:  31 December 2018

Title: AASB logo - Description: AASB logo with Australian crest and text identifying the Australian Government and the Australian Accounting Standards Board.
 



Obtaining copies of Accounting Standards

Compiled versions of Standards, original Standards and amending Standards (see Compilation Details) are available on the AASB website: www.aasb.gov.au.

Australian Accounting Standards Board

PO Box 204

Collins Street West

Victoria   8007

AUSTRALIA

Phone:       (03) 9617 7637

E-mail:       standard@aasb.gov.au

Website:    www.aasb.gov.au

Other enquiries

Phone:       (03) 9617 7600

E-mail:       standard@aasb.gov.au

COPYRIGHT

© Commonwealth of Australia 2019

This work is copyright.  Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission.  Requests and enquiries concerning reproduction and rights should be addressed to The National Director, Australian Accounting Standards Board, PO Box 204, Collins Street West, Victoria 8007.


Contents

Accounting Standard

AASB 1057 Application of Australian Accounting Standards

from paragraph

Objective                                                                                                                                                                             1

Application of this Standard                                                                                                                              2

Application of Australian Accounting Standards                                                                           5

Application of Australian Interpretations                                                                                       22

Commencement of the legislative instrument                                                                              27

Appendix

Defined terms

COMPILATION DETAILS

 

BASIS FOR CONCLUSIONS

 

 

Australian Accounting Standard AASB 1057 Application of Australian Accounting Standards (as amended) is set out in paragraphs 1 – 27 and the Appendix.  All the paragraphs have equal authority.  Paragraphs in bold type state the main principles.  Terms defined in the Appendix are in italics the first time they appear in the Standard.  AASB 1057 is to be read in the context of other Australian Accounting Standards, including AASB 1048 Interpretation of Standards, which identifies the Australian Accounting Interpretations.  In the absence of explicit guidance, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies.

 


Accounting Standard AASB 1057

The Australian Accounting Standards Board made Accounting Standard AASB 1057 Application of Australian Accounting Standards under section 334 of the Corporations Act 2001 on 24 July 2015.

This compiled version of AASB 1057 applies to annual periods beginning on or after 1 January 2019 but before 1 January 2021.  It incorporates relevant amendments contained in other AASB Standards made by the AASB up to and including 9 December 2016 (see Compilation Details).

Accounting Standard AASB 1057

Application of Australian Accounting Standards

Objective

1                       The objective of this Standard is to specify the types of entities and financial statements to which Australian Accounting Standards (including Interpretations) apply.  Each reference to an Interpretation refers to that Interpretation as identified in AASB 1048 Interpretation of Standards.

Application of this Standard

2                       This Standard applies to:

(a)                   each entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act;

(b)                   general purpose financial statements of each reporting entity;

(c)                   financial statements that are, or are held out to be, general purpose financial statements; and

(d)                   financial statements of General Government Sectors (GGSs) prepared in accordance with AASB 1049 Whole of Government and General Government Sector Financial Reporting.

3                       This Standard applies to annual periods beginning on or after 1 January 2016.

4                       This Standard may be applied to annual periods beginning before 1 January 2016.

Application of Australian Accounting Standards

5                       Unless specified otherwise in paragraphs 621, Australian Accounting Standards apply to:

(a)                   each entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act and that is a reporting entity;

(b)                   general purpose financial statements of each other reporting entity; and

(c)                   financial statements that are, or are held out to be, general purpose financial statements.

6                       AASB 8 Operating Segments applies to:

(a)                   each for-profit entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act and that is a reporting entity;

(b)                   general purpose financial statements of each other for-profit reporting entity; and

(c)                   financial statements of a for-profit entity that are, or are held out to be, general purpose financial statements.

7                       AASB 101 Presentation of Financial Statements, AASB 107 Statement of Cash Flows, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, AASB 1048 Interpretation of Standards and AASB 1054 Australian Additional Disclosures apply to:

(a)                   each entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act;

(b)                   general purpose financial statements of each reporting entity; and

(c)                   financial statements that are, or are held out to be, general purpose financial statements.

8                       AASB 120 Accounting for Government Grants and Disclosure of Government Assistance applies to:

(a)                   each for-profit entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act and that is a reporting entity;

(b)                   general purpose financial statements of each other for-profit reporting entity; and

(c)                   financial statements of a for-profit entity that are, or are held out to be, general purpose financial statements.

9                       AASB 133 Earnings per Share applies to each entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act and that is a reporting entity or discloses earnings per share.

10                   AASB 134 Interim Financial Reporting applies to:

(a)                   each disclosing entity required to prepare half-year financial reports in accordance with Part 2M.3 of the Corporations Act;

(b)                   interim financial reports that are general purpose financial statements of each other reporting entity; and

(c)                   interim financial reports that are, or are held out to be, general purpose financial statements.

11                   AASB 1004 Contributions applies to general purpose financial statements of local governments, government departments, other government controlled not-for-profit entities and whole of governments.

12                   AASB 1038 Life Insurance Contracts applies to:

(a)                   a life insurer; or

(b)                   the parent in a group that includes a life insurer;

when the entity:

(c)                   is a reporting entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act;

(d)                   is an other reporting entity and prepares general purpose financial statements; or

(e)                   prepares financial statements that are, or are held out to be, general purpose financial statements.

13                   AASB 1039 Concise Financial Reports applies to a concise financial report prepared by an entity in accordance with paragraph 314(2)(a) in Part 2M.3 of the Corporations Act.

14                   AASB 1049 applies to each government’s whole of government general purpose financial statements and GGS financial statements.

15                   AASB 1050 Administered Items applies to general purpose financial statements of government departments.

16                   AASB 1051 Land Under Roads applies to general purpose financial statements of local governments, government departments and whole of governments, and financial statements of GGSs.

17                   AASB 1052 Disaggregated Disclosures applies to general purpose financial statements of local governments and government departments.

18                   AASB 1053 Application of Tiers of Australian Accounting Standards applies to:

(a)                   each entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act;

(b)                   general purpose financial statements of each reporting entity;

(c)                   financial statements that are, or are held out to be, general purpose financial statements; and

(d)                   financial statements of GGSs prepared in accordance with AASB 1049.

19                   AASB 1055 Budgetary Reporting applies to:

(a)                   whole of government general purpose financial statements of each government;

(b)                   financial statements of each government’s GGS;

(c)                   general purpose financial statements of each not-for-profit reporting entity within the GGS; and

(d)                   financial statements of each not-for-profit entity within the GGS that are, or are held out to be, general purpose financial statements.

20                   AASB 1056 Superannuation Entities applies to:

(a)                   general purpose financial statements of each superannuation entity that is a reporting entity; and

(b)                   financial statements of a superannuation entity that are held out to be general purpose financial statements.

20A          AASB 1058 Income of Not-for-Profit Entities applies to:

(a)            each not-for-profit entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act and that is a reporting entity;

(b)            general purpose financial statements of each other not-for-profit entity that is a reporting entity; and

(c)             financial statements of a not-for-profit entity that are, or are held out to be, general purpose financial statements.

21                   AAS 25 Financial Reporting by Superannuation Plans applies to general purpose financial reports of each superannuation plan in the private or public sector that is a reporting entity.

Application of Australian Interpretations

22                   Unless specified otherwise in paragraphs 2326, Interpretations apply to:

(a)                   each entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act and that is a reporting entity;

(b)                   general purpose financial statements of each other reporting entity; and

(c)                   financial statements that are, or are held out to be, general purpose financial statements.

23                   Interpretation 110 Government Assistance – No Specific Relation to Operating Activities applies to:

(a)                   each for-profit entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act and that is a reporting entity;

(b)                   general purpose financial statements of each other for-profit reporting entity; and

(c)                   financial statements of a for-profit entity that are, or are held out to be, general purpose financial statements.

24                   Interpretation 1019 The Superannuation Contributions Surcharge applies to:

(a)                   each superannuation plan that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act and that is a reporting entity;

(b)                   general purpose financial statements of each other superannuation plan that is a reporting entity; and

(c)                   financial statements of a superannuation plan that are, or are held out to be, general purpose financial statements.

25                   Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities applies to public sector entities as follows:

(a)                   each entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act and that is a reporting entity;

(b)                   general purpose financial statements of each other reporting entity; and

(c)                   financial statements that are, or are held out to be, general purpose financial statements.

26                   Interpretation 1047 Professional Indemnity Claims Liabilities in Medical Defence Organisations applies to entities that are or include medical defence organisations as follows:

(a)                   each entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act and that is a reporting entity;

(b)                   general purpose financial statements of each other reporting entity; and

(c)                   financial statements that are, or are held out to be, general purpose financial statements.

Commencement of the legislative instrument

27                   For legal purposes, this legislative instrument commences on 31 December 2015.

 


Appendix
Defined terms

This appendix is an integral part of AASB 1057.

general purpose financial statements

Financial statements that are intended to meet the needs of users who are not in a position to require an entity to prepare reports tailored to their particular information needs.

reporting entity

An entity in respect of which it is reasonable to expect the existence of users who rely on the entity’s general purpose financial statements for information that will be useful to them for making and evaluating decisions about the allocation of resources.  A reporting entity can be a single entity or a group comprising a parent and all of its subsidiaries.

 

 


Compilation details
Accounting Standard AASB
1057 Application of Australian Accounting Standards (as amended)

Compilation details are not part of AASB 1057.

This compiled Standard applies to annual periods beginning on or after 1 January 2019 but before 1 January 2021.  It takes into account amendments up to and including 9 December 2016 and was prepared on 30 May 2019 by the staff of the Australian Accounting Standards Board (AASB).

This compilation is not a separate Accounting Standard made by the AASB.  Instead, it is a representation of AASB 1057 (July 2015) as amended by other Accounting Standards, which are listed in the Table below.

Table of Standards

Standard

Date made

FRLI identifier

Commence-ment date

Application date
(annual periods
… on or after …)

Application, saving or transitional provisions

AASB 1057

24 Jul 2015

F2015L01620

31 Dec 2015

(beginning) 1 Jan 2016

see (a) below

AASB 2015-9

11 Nov 2015

F2015L01832

31 Dec 2015

(beginning) 1 Jan 2016

see (a) below

AASB 1058

9 Dec 2016

F2017L00042

31 Dec 2018

(beginning) 1 Jan 2019

see (b) below

AASB 17

19 Jul 2017

F2017L01184

31 Dec 2020

(beginning) 1 Jan 2021

not compiled*

 

*         The amendments made by this Standard are not included in this compilation, which presents the principal Standard as applicable to annual periods beginning on or after 1 January 2019 but before 1 January 2021.

(a)       Entities may elect to apply this Standard to annual periods beginning before 1 January 2016.

(b)       Entities may elect to apply this Standard to annual periods beginning before 1 January 2019, provided that AASB 15 Revenue from Contracts with Customers is also applied to the same period.

Table of amendments

Paragraph affected

How affected

By … [paragraph]

6

amended

AASB 2015-9 [11]

 

amended

AASB 1058 [page 27]

9

amended

AASB 2015-9 [11]

11

amended

AASB 1058 [page 27]

20A

added

AASB 1058 [page 27]

 


Basis for Conclusions

This Basis for Conclusions accompanies, but is not part of, AASB 1057.

BC1              This Basis for Conclusions summarises the Australian Accounting Standards Board’s considerations in reaching the conclusions in AASB 1057 Application of Australian Accounting Standards.  Individual Board members gave greater weight to some factors than to others.

BC2              In 2005 when Australia transitioned to adopting International Financial Reporting Standards (IFRSs), Australian Accounting Standards (including Interpretations) were issued using IFRSs as a base.  Australian-specific paragraphs (labelled as ‘Aus’ paragraphs), including application paragraphs, were added to the IFRS text.  These application paragraphs identified, in each Standard, the entities and financial reports to which the Standard applied.  For example, most Standards apply explicitly to reporting entities and to general purpose financial statements.  Other minor amendments were also made to the IFRS text (eg Australian terminology and punctuation).

BC3              At its May 2015 meeting, the Board decided to revise Australian Accounting Standards that incorporate IFRSs to minimise Australian-specific wording even further.  Therefore, because IFRSs do not contain such application paragraphs, the application paragraphs that were previously in each Australian Accounting Standard were moved to this Standard.  In doing so, the application requirements have not been amended.  These application paragraphs also do not affect requirements in other Standards that specify that certain paragraphs apply only to certain types of entities.

BC4              For consistency, the application paragraphs of Australian-specific Standards have also been included in this Standard, without amendment.  When those Standards are amended for other reasons, their application paragraphs are expected to be removed.