Document ID: chunk:federal_register_of_legislation:F2025C00207:front:0:p29
Version: federal_register_of_legislation:F2025C00207
Segment Type: other
Provision Reference: 
Character Range: 79948–82891

the cumulative translation difference for that foreign operation (including, if applicable, gains and losses on related hedges) from equity to profit or loss as part of the gain or loss on disposal.
D13 However, a first-time adopter need not comply with these requirements for cumulative translation differences that existed at the date of transition to Australian Accounting Standards. If a first-time adopter uses this exemption:
(a) the cumulative translation differences for all foreign operations are deemed to be zero at the date of transition to Australian Accounting Standards; and
(b) the gain or loss on a subsequent disposal of any foreign operation shall exclude translation differences that arose before the date of transition to Australian Accounting Standards and shall include later translation differences.
     D13A Instead of applying paragraph D12 or paragraph D13, a subsidiary that uses the exemption in paragraph D16(a) may elect, in its financial statements, to measure cumulative translation differences for all foreign operations at the carrying amount that would be included in the parent's consolidated financial statements, based on the parent's date of transition to Australian Accounting Standards or IFRSs, if no adjustments were made for consolidation procedures and for the effects of the business combination in which the parent acquired the subsidiary. A similar election is available to an associate or joint venture that uses the exemption in paragraph D16(a).

Investments in subsidiaries, joint ventures and associates
D14 When an entity prepares separate financial statements, AASB 127 requires it to account for its investments in subsidiaries, joint ventures and associates either:
(a) at cost;
(b) in accordance with AASB 9; or
(c) using the equity method as described in AASB 128.
D15 If a first-time adopter measures such an investment at cost in accordance with AASB 127, it shall measure that investment at one of the following amounts in its separate opening Australian-Accounting-Standards statement of financial position:
(a) cost determined in accordance with AASB 127; or
(b) deemed cost. The deemed cost of such an investment shall be its:
(i) fair value at the entity's date of transition to Australian Accounting Standards in its separate financial statements; or
(ii) previous GAAP carrying amount at that date.
A first-time adopter may choose either (i) or (ii) above to measure its investment in each subsidiary, joint venture or associate that it elects to measure using a deemed cost.
D15A If a first-time adopter accounts for such an investment using the equity method procedures as described in AASB 128:
(a) the first-time adopter applies the exemption for past business combinations (Appendix C) to the acquisition of the investment.
(b) if the entity becomes a first-time adopter for its separate financial statements earlier than for its consolidated financial statements, and