Document ID: chunk:federal_register_of_legislation:F2023C00188:reg:7:p17
Version: federal_register_of_legislation:F2023C00188
Segment Type: reg
Provision Reference: reg 7 (pt 17/91)
Character Range: 53141–56160

the class at fair value at the date of initial application of this Standard;

(ii)                   measure the lease liability in accordance with AASB 117;

(iii)                 recognise any related items in accordance with paragraph 9; and

(iv)                 recognise any income arising as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at the date of initial application of this Standard.

C10A If an entity elects not to measure a class of right-of-use assets at initial recognition at fair value and applies this Standard before applying AASB 16, for leases that (1) at inception had significantly below-market terms and conditions principally to enable the entity to further its objectives and (2) were classified as finance leases in accordance with AASB 117, the entity shall continue to apply its accounting policy under AASB 117 to those finance leases.  On transition to AASB 16, the entity shall apply the transition requirements of that Standard to leases classified as finance leases in accordance with AASB 117.

C11                An entity applying paragraph C10 may, as a practical expedient, apply the paragraph to a portfolio of leases with similar characteristics if the entity reasonably expects that the effects on the financial statements of this approach would not differ materially from applying paragraph C10 to the individual leases within that portfolio.  If accounting for a portfolio, an entity shall use estimates and assumptions that reflect the size and composition of the portfolio.

References to AASB 9

C12                If an entity applies this Standard but does not yet apply AASB 9 Financial Instruments, any reference in this Standard to AASB 9 shall be read as a reference to AASB 139 Financial Instruments: Recognition and Measurement.

Appendix D
Amendments to other Standards
This appendix sets out the amendments to other Australian Accounting Standards that are a consequence of the AASB issuing this Standard.

[Deleted by the AASB – the amendments have been incorporated into the text of the relevant pronouncements.]

Appendix E
Australian simplified disclosures for Tier 2 entities
This appendix is an integral part of the Standard.

          AusE1 Paragraphs 23–41 do not apply to entities preparing general purpose financial statements that apply AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities.

Illustrative examples
These illustrative examples accompany, but are not part of, AASB 1058.  They illustrate aspects of AASB 1058, but are not intended to provide interpretative guidance.

IE1                 The following examples portray hypothetical situations.  They are intended to illustrate how a not-for-profit entity might apply some of the requirements of AASB 1058 Income of Not-for-Profit Entities to particular types of transactions, on the basis of the limited facts presented.  Although some aspects of the