Document ID: chunk:federal_register_of_legislation:F2025C00207:front:0:p28
Version: federal_register_of_legislation:F2025C00207
Segment Type: other
Provision Reference: 
Character Range: 77241–80196

in paragraph D9B to leases for which the lease term (see paragraph D9E) ends within 12 months of the date of transition to Australian Accounting Standards. Instead, the entity shall account for (including disclosure of information about) these leases as if they were short-term leases accounted for in accordance with paragraph 6 of AASB 16.
(c) elect not to apply the requirements in paragraph D9B to leases for which the underlying asset is of low value (as described in paragraphs B3–B8 of AASB 16). Instead, the entity shall account for (including disclosure of information about) these leases in accordance with paragraph 6 of AASB 16.
(d) exclude initial direct costs (see paragraph D9E) from the measurement of the right-of-use asset at the date of transition to Australian Accounting Standards.
(e) use hindsight, such as in determining the lease term if the contract contains options to extend or terminate the lease.
AusD9D.1  Notwithstanding paragraphs D9B–D9D, where a lessee is a not-for-profit entity and the lease had at inception significantly below-market terms and conditions principally to enable the entity to further its objectives, all references in those paragraphs to the date of transition to Australian Accounting Standards shall be read as referring to the beginning of the current period presented in the entity's first Australian-Accounting-Standards financial statements.  Consequently, the entity shall measure the lease liability and the right-of-use asset at that date.
AusD9D.2  Where a lessee is a not-for-profit entity and elects to measure at fair value in accordance with paragraph AusD7.1 a class of right-of-use assets arising under leases that had at inception significantly below-market terms and conditions principally to enable the entity to further its objectives, the entity shall also recognise any related items in accordance with paragraph 9 of AASB 1058 Income of Not-for-Profit Entities.  Any income arising shall be recognised as an adjustment to the opening balance of retained earnings (or another component of equity, as appropriate) at the beginning of the current period presented in the entity's first Australian-Accounting-Standards financial statements.
D9E Lease payments, lessee, lessee's incremental borrowing rate, commencement date of the lease, initial direct costs and lease term are defined terms in AASB 16 and are used in this Standard with the same meaning.
D10–
D11 [Deleted]

Cumulative translation differences
D12 AASB 121 requires an entity:
(a) to recognise some translation differences in other comprehensive income and accumulate these in a separate component of equity; and
(b) on disposal of a foreign operation, to reclassify 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