Document ID: chunk:federal_register_of_legislation:F2023C00188:reg:7:p15
Version: federal_register_of_legislation:F2023C00188
Segment Type: reg
Provision Reference: reg 7 (pt 15/91)
Character Range: 47375–50602

the purposes of the transition requirements in paragraphs C3–C12:

(a)                    the date of initial application is the beginning of the annual reporting period in which an entity first applies this Standard; and

(b)                   a completed contract is a contract or transaction for which the entity has recognised all of the income in accordance with AASB 1004 Contributions.

C3                   An entity shall apply this Standard either:

(a)                    retrospectively to each prior reporting period presented in accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors; or

(b)                   retrospectively with the cumulative effect of initially applying this Standard recognised at the date of initial application in accordance with paragraphs C6–C11.

C4                   Notwithstanding the requirements of paragraph 28 of AASB 108, when this Standard is first applied, an entity need only present the quantitative information required by paragraph 28(f) of AASB 108 for the annual reporting period immediately preceding the first annual reporting period for which this Standard is applied (the 'immediately preceding period') and only if the entity applies this Standard retrospectively in accordance with paragraph C3(a).  An entity may also present this information for the current period or for earlier comparative periods, but is not required to do so.

C5                   When applying this Standard retrospectively in accordance with paragraph C3(a), as a practical expedient an entity need not restate completed contracts or transactions that:

(a)                    begin and end within the same annual reporting period; or

(b)                   are completed contracts or transactions at the beginning of the earliest period presented.

If an entity applies this expedient, it shall do so consistently to all completed contracts or transactions within all reporting periods presented and shall disclose the use of this expedient.

C6                   If an entity elects to apply this Standard retrospectively in accordance with paragraph C3(b), the entity shall not restate comparative information.  Instead, the entity shall recognise the cumulative effect of initially applying this Standard as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at the date of initial application.  Under this transition method, an entity may elect to apply this Standard retrospectively only to contracts and transactions that are not completed contracts at the date of initial application.

C7                   For the reporting period that includes the date of initial application, an entity shall provide both of the following additional disclosures if this Standard is applied retrospectively in accordance with paragraph C3(b):

(a)                    the amount by which each financial statement line item is affected in the current reporting period by the application of this Standard as compared to AASB 1004 Contributions before the change; and

(b)                   an explanation of the reasons for significant changes identified in paragraph C7(a).

Assets acquired for significantly