Document ID: chunk:federal_register_of_legislation:F2025C00207:front:0:p32
Version: federal_register_of_legislation:F2025C00207
Segment Type: other
Provision Reference: 
Character Range: 88015–90919

Despite the requirements of paragraphs 7 and 9, an entity may apply the requirements in paragraph B5.1.2A(b) of AASB 9 prospectively to transactions entered into on or after the date of transition to Australian Accounting Standards.

Decommissioning liabilities included in the cost of property, plant and equipment
D21 Interpretation 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities as identified in AASB 1048 requires specified changes in a decommissioning, restoration or similar liability to be added to or deducted from the cost of the asset to which it relates; the adjusted depreciable amount of the asset is then depreciated prospectively over its remaining useful life. A first-time adopter need not comply with these requirements for changes in such liabilities that occurred before the date of transition to Australian Accounting Standards. If a first-time adopter uses this exemption, it shall:
(a) measure the liability as at the date of transition to Australian Accounting Standards in accordance with AASB 137;
(b) to the extent that the liability is within the scope of Interpretation 1, estimate the amount that would have been included in the cost of the related asset when the liability first arose, by discounting the liability to that date using its best estimate of the historical risk-adjusted discount rate(s) that would have applied for that liability over the intervening period; and
(c) calculate the accumulated depreciation on that amount, as at the date of transition to Australian Accounting Standards, on the basis of the current estimate of the useful life of the asset, using the depreciation policy adopted by the entity in accordance with Australian Accounting Standards.
D21A An entity that uses the exemption in paragraph D8A(b) (for oil and gas assets in the development or production phases accounted for in cost centres that include all properties in a large geographical area under previous GAAP) shall, instead of applying paragraph D21 or Interpretation 1 (as identified in AASB 1048):
(a) measure decommissioning, restoration and similar liabilities as at the date of transition to Australian Accounting Standards in accordance with AASB 137; and
(b) recognise directly in retained earnings any difference between that amount and the carrying amount of those liabilities at the date of transition to Australian Accounting Standards determined under the entity's previous GAAP.

Financial assets or intangible assets accounted for in accordance with Interpretation 12
D22 A first-time adopter may apply the transitional provisions in Interpretation 12 as identified in AASB 1048.

Borrowing costs
D23 A first-time adopter can elect to apply the requirements of AASB 123 from the date of transition or from an earlier date as permitted by paragraph 28 of AASB 123. From the date on which an entity that applies this exemption begins to