Document ID: chunk:federal_register_of_legislation:F2025C00207:front:0:p19
Version: federal_register_of_legislation:F2025C00207
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for that loan.
B12 The requirements and guidance in paragraphs B10 and B11 do not preclude an entity from being able to use the exemptions described in paragraphs D19–D19C relating to the designation of previously recognised financial instruments at fair value through profit or loss.

Insurance contracts
B13 An entity shall apply the transition provisions in paragraphs C1–C24 and C28 in Appendix C of AASB 17 to contracts within the scope of AASB 17. The references in those paragraphs in AASB 17 to the transition date shall be read as the date of transition to Australian Accounting Standards.

Deferred tax related to leases and decommissioning, restoration and similar liabilities
B14 Paragraphs 15 and 24 of AASB 112 Income Taxes exempt an entity from recognising a deferred tax asset or liability in particular circumstances. Despite this exemption, at the date of transition to Australian Accounting Standards, a first-time adopter shall recognise a deferred tax asset – to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised – and a deferred tax liability for all deductible and taxable temporary differences associated with:
          (a) right-of-use assets and lease liabilities; and
          (b) decommissioning, restoration and similar liabilities and the corresponding amounts recognised as part of the cost of the related asset.

Appendix C
Exemptions for business combinations
This appendix is an integral part of the Standard. An entity shall apply the following requirements to business combinations that the entity recognised before the date of transition to Australian Accounting Standards. This Appendix should only be applied to business combinations within the scope of AASB 3 Business Combinations.
C1 A first-time adopter may elect not to apply AASB 3 retrospectively to past business combinations (business combinations that occurred before the date of transition to Australian Accounting Standards). However, if a first-time adopter restates any business combination to comply with AASB 3, it shall restate all later business combinations and shall also apply AASB 10 from that same date. For example, if a first-time adopter elects to restate a business combination that occurred on 30 June 20X6, it shall restate all business combinations that occurred between 30 June 20X6 and the date of transition to Australian Accounting Standards, and it shall also apply AASB 10 from 30 June 20X6.
C2 An entity need not apply AASB 121 The Effects of Changes in Foreign Exchange Rates retrospectively to fair value adjustments and goodwill arising in business combinations that occurred before the date of transition to Australian Accounting Standards. If the entity does not apply AASB 121 retrospectively to those fair value adjustments and goodwill, it shall treat them as assets and liabilities of the entity rather