Document ID: chunk:federal_register_of_legislation:F2024L00708:body:0:p139
Version: federal_register_of_legislation:F2024L00708
Segment Type: other
Provision Reference: 
Character Range: 387993–390765

in June 2024, the AASB changed the title of AASB 108 to Basis of Preparation of Financial Statements.

A footnote is added to 'AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors.' in paragraph IE45. New text is underlined.

  1 When it issued AASB 18, the AASB changed the title of AASB 108.

AASB Interpretation 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities (July 2015)
Below the heading 'References', the references to AASB 101 and AASB 108 are amended. Paragraphs 6 and 8 are amended and paragraph 9C is added. New text is underlined and deleted text is struck through.

References
• AASB 16 Leases
• AASB 18 Presentation and Disclosure in Financial StatementsAASB 101 Presentation of Financial Statements
• AASB 108 Basis of Preparation of Financial StatementsAccounting Policies, Changes in Accounting Estimates and Errors
• AASB 116 Property, Plant and Equipment
• AASB 123 Borrowing Costs
• AASB 136 Impairment of Assets
• AASB 137 Provisions, Contingent Liabilities and Contingent Assets
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Consensus
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6 If the related asset is measured using the revaluation model:
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(d) AASB 18 AASB 101 requires items of other comprehensive income to be presented as line items in the statement presenting comprehensive incomedisclosure in the statement of comprehensive income of each component of other comprehensive income or expense. In complying with this requirement, the change in the revaluation surplus arising from a change in the liability shall be separately identified and presented disclosed as such.
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8 The periodic unwinding of the discount shall be recognised in profit or loss as interest expense from liabilities other than those that arise from transactions that involve only the raising of finance a finance cost as it occurs and classified – applying paragraph 61 of AASB 18 – in the financing category of the statement of profit or loss. Capitalisation under AASB 123 is not permitted.

Effective date
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9C AASB 18 issued in June 2024 amended paragraphs 6 and 8. An entity shall apply those amendments when it applies AASB 18.
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Paragraphs IE4 and IE5 of Example 1 that accompany AASB Interpretation 1 are amended. New text is underlined and deleted text is struck through.

Illustrative examples
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Example 1: Cost model
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IE4 Following this adjustment, the carrying amount of the asset is CU82,000 (CU120,000 – CU8,000 – CU30,000), which will be depreciated over the remaining 30 years of the asset's life giving a depreciation expense for the next year of CU2,733 (CU82,000 ÷ 30). The next year's increase in the liability finance cost for the unwinding of the discount will be CU415 (CU8,300 × 5 per cent).
IE5 If the change in the liability had resulted from a change in