Preface
Standards amended by AASB 2022-7
This Standard makes amendments to the Australian Accounting Standards and AASB Practice Statement listed in paragraph 1 of the Standard.
Standards repealed by AASB 2022-7
This Standard formally repeals the superseded and redundant Australian Accounting Standards as set out in Schedules 1 and 2 to the Standard.
Main features of this Standard
Main requirements
Editorial corrections
This Standard makes editorial corrections to various Australian Accounting Standards and AASB Practice Statement 2 Making Materiality Judgements. The corrections include corrections made by the IASB to IFRS Standards since June 2021.
Repeals of Standards
This Standard repeals (via Schedule 1) Australian Accounting Standards that have been superseded by either subsequent principal versions of the Standard or by other Standards without being formally repealed at the time. The superseding Standards are also identified in this Standard, in Column 2 of Schedule 1, as they determine when each superseded Standard ceased to apply.
The Standard also repeals (via Schedule 2) Standards that made amendments to other Standards, being amending Standards that have passed their Parliamentary disallowance period and their legal commencement date but have not been formally repealed. Amending Standards are redundant once their amendments are made to the other Standards on the legal commencement date.
Despite the repeals, the repealed Standards continue to apply to the reporting periods to which they applied previously. Accordingly, the repeals have no effect on which Standards apply to the preparation and presentation of financial statements for reporting periods.
As a result of the repeals, the repealed Standards cease to be classified as in-force legislative instruments on the Federal Register of Legislation. However, the repealed Standards will continue to be available on the Federal Register of Legislation, but classified as legislative instruments that are no longer in force. There will be no change to the availability of the repealed Standards on the AASB’s website.
Application date
The editorial corrections apply to annual reporting periods beginning on or after 1 January 2023. Earlier application of the corrections is permitted.
The repeals take effect upon the commencement of this Standard as a legislative instrument. An explicit application date in terms of reporting periods is not required for the repeals. Each repealed Standard has already been either superseded by another Standard or, in the case of amending Standards, made redundant by the passing of its Parliamentary disallowance period and its legal commencement date.
Accounting Standard AASB 2022-7
The Australian Accounting Standards Board makes Accounting Standard AASB 2022-7 Editorial Corrections to Australian Accounting Standards and Repeal of Superseded and Redundant Standards under section 334 of the Corporations Act 2001.
| | Keith Kendall |
| Dated 15 December 2022 | Chair – AASB |
Accounting Standard AASB 2022-7
Editorial Corrections to Australian Accounting Standards and Repeal of Superseded and Redundant Standards
1 This Standard amends the following pronouncements to make editorial corrections:
(a) AASB 7 Financial Instruments: Disclosures (August 2015);
(b) AASB 116 Property, Plant and Equipment (August 2015);
(c) AASB 124 Related Party Disclosures (July 2015);
(d) AASB 128 Investments in Associates and Joint Ventures (August 2015);
(e) AASB 134 Interim Financial Reporting (August 2015);
(f) AASB 1054 Australian Additional Disclosures (May 2011); and
(g) AASB Practice Statement 2 Making Materiality Judgements (December 2017).
2 This Standard repeals Australian Accounting Standards that have been superseded by other Standards but not formally repealed. It also repeals Standards that amend other Standards as their principal purpose but which have not been formally repealed, provided their Parliamentary disallowance period and legal commencement date have passed.
Application
3 The editorial corrections set out in this Standard apply to entities and financial statements in accordance with the application of the other Standards set out in AASB 1057 Application of Australian Accounting Standards.
4 The editorial corrections in this Standard apply to annual periods beginning on or after 1 January 2023. The editorial corrections may be applied to annual periods beginning before 1 January 2023.
5 This Standard uses underlining, striking out and other typographical material to identify some of the editorial corrections to a pronouncement, in order to make the amendments more understandable. However, the amendments made by this Standard do not include that underlining, striking out or other typographical material. Amended paragraphs are shown with deleted text struck through and new text underlined. Ellipses (…) are used to help provide the context within which amendments are made and also to indicate text that is not amended.
6 The repeals of superseded Standards and redundant amending Standards set out in this Standard take effect upon the commencement of this Standard as a legislative instrument (see paragraph 18).
Editorial corrections
Amendments to AASB 7 Financial Instruments: Disclosures
7 In paragraph 36(a), the text “netting agreements that do not quality for offset” is amended to read “netting agreements that do not qualify for offset”.
Amendments to AASB 116 Property, Plant and Equipment
8 Paragraph G1 in the accompanying implementation guidance is amended as follows:
G1 In accordance with paragraphs 7(b), 15 and Aus15.1 of AASB 116, only those heritage and cultural assets that can be reliably measured are recognised. It depends on the circumstances as to whether the reliable measurement recognition criterion can be satisfied in relation to a particular heritage or cultural asset. Heritage and cultural assets acquired at no cost, or for a nominal cost, for consideration that is significantly less than fair value principally to enable the entity to further its objectives are required to be initially recognised at fair value as at the date of acquisition. Depending on circumstances, it may not be possible to reliably measure the fair value as at the date of acquisition of a heritage or cultural asset.
Amendments to AASB 124 Related Party Disclosures
9 In paragraph 11(c)(iv), the text “does not control, jointly control or significant influence the reporting entity” is amended to read “does not control, jointly control or significantly influence the reporting entity”.
Amendments to AASB 128 Investments in Associates and Joint Ventures
10 Paragraph Aus17.2 is amended and paragraph AusCFAus17.2 is added as follows:
Aus17.2 Notwithstanding paragraphs 17 and Aus17.1, the ultimate Australian entity shall apply the equity method in accounting for interests in associates and joint ventures in accordance with this Standard when either the entity or the group is a reporting entity, or both the entity and the group are reporting entities the ultimate Australian entity is required by legislation to prepare financial statements that comply with either Australian Accounting Standards or accounting standards, except if the ultimate Australian parent is required, in accordance with paragraph 31 of AASB 10, to measure all of its subsidiaries at fair value through profit or loss.
AusCFAus17.2 Notwithstanding paragraphs 17, Aus17.1 and Aus17.2, in respect of AusCF entities, the ultimate Australian entity shall apply the equity method in accounting for interests in associates and joint ventures in accordance with this Standard when either the entity or the group is a reporting entity, or both the entity and the group are reporting entities, except if the ultimate Australian parent is required, in accordance with paragraph 31 of AASB 10, to measure all of its subsidiaries at fair value through profit or loss.
Amendments to AASB 134 Interim Financial Reporting
11 Paragraph 5 is amended as follows:
5 AASB 101 defines a complete set of financial statements as including the following components:
(a) …
(e) notes, comprising material accounting policy information and other explanatory information;
(ea) …
Amendments to AASB 1054 Australian Additional Disclosures
12 The table in paragraph IG2 in the accompanying implementation guidance for not-for-profit private sector entities is amended as follows:
| # | Entity | In scope/out of scope |
| 1 | For-profit private and for-profit public sector entities preparing special purpose financial statements | Not in scope |
| 2 | Not-for-profit private sector entities | |
| | Charities registered with the Australian Charities and Not-for-profits Commission (ACNC) | |
| | - that have annual revenue of $250,000 or more (ie medium and large charities), preparing special purpose financial statements and required to comply with the ACNC reporting requirements for such financial statements | In scope, must comply with AASB 1054 |
| | - that have annual revenue of less than $250,000 (ie small charities) | Not in scope |
| | - that have annual revenue of $250,000 or more, medium and large charities preparing special purpose financial statements and not required to comply with the ACNC reporting requirements for such financial statements | Not in scope |
| | … | |
Amendments to AASB Practice Statement 2 Making Materiality Judgements
13 The diagram of the four-step materiality process in paragraph 34 is numbered as Diagram 1.
Repeal of superseded and redundant Standards
14 Each superseded Standard that is specified in Column 1 of the table in Schedule 1 is repealed.
15 Despite the repeal, each Standard in Column 1 of Schedule 1 continues to apply in relation to any period ending before the period in relation to which the corresponding Standard in Column 2 started to apply under section 334 of the Corporations Act, as if the repeal had not occurred.
16 Each redundant amending Standard that is specified in the table in Schedule 2 is repealed.
17 The repeal of a Standard by paragraph 16 does not affect:
(a) any amendment or repeal (however described) made by the Standard; or
(b) the continuing operation of any provision of the Standard made or expressed to be made for an application, saving or transitional purpose (or that makes provision consequential on or related to such a provision).
Commencement of the legislative instrument
18 For legal purposes, this legislative instrument commences on 31 December 2022.