Document ID: chunk:federal_register_of_legislation:F2025C00207:front:0:p5
Version: federal_register_of_legislation:F2025C00207
Segment Type: other
Provision Reference: 
Character Range: 11814–15062

an entity that already applies Australian Accounting Standards. Such changes are the subject of:
(a) requirements on changes in accounting policies in AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors; and
(b) specific transitional requirements in other Australian Accounting Standards.

Recognition and measurement

Opening Australian-Accounting-Standards statement of financial position
6 An entity shall prepare and present an opening Australian-Accounting-Standards statement of financial position at the date of transition to Australian Accounting Standards. This is the starting point for its accounting in accordance with Australian Accounting Standards.

Accounting policies
7 An entity shall use the same accounting policies in its opening Australian-Accounting-Standards statement of financial position and throughout all periods presented in its first Australian-Accounting-Standards financial statements. Those accounting policies shall comply with each Australian Accounting Standard effective at the end of its first Australian-Accounting-Standards reporting period, except as specified in paragraphs 13–19 and Appendices B–E.
8 An entity shall not apply different versions of Australian Accounting Standards that were effective at earlier dates. An entity may apply a new Standard that is not yet mandatory if that Standard permits early application.

Example: Consistent application of latest version of Australian Accounting Standards
Background
The end of entity A's first Australian-Accounting-Standards reporting period is 31 December 20X5. Entity A decides to present comparative information in those financial statements for one year only (see paragraph 21). Therefore, its date of transition to Australian Accounting Standards is the beginning of business on 1 January 20X4 (or, equivalently, close of business on 31 December 20X3). Entity A presented financial statements in accordance with its previous GAAP annually to 31 December each year up to, and including, 31 December 20X4.
Application of requirements
Entity A is required to apply the Australian Accounting Standards effective for periods ending on 31 December 20X5 in:
(a) preparing and presenting its opening Australian-Accounting-Standards statement of financial position at 1 January 20X4; and
(b) preparing and presenting its statement of financial position for 31 December 20X5 (including comparative amounts for 20X4), statement of comprehensive income, statement of changes in equity and statement of cash flows for the year to 31 December 20X5 (including comparative amounts for 20X4) and disclosures (including comparative information for 20X4).
If a new Standard is not yet mandatory but permits early application, entity A is permitted, but not required, to apply that Standard in its first Australian-Accounting-Standards financial statements.

9 The transitional provisions in other Australian Accounting Standards apply to changes in accounting policies made by an entity that already uses Australian Accounting Standards; they do not apply to a first-time adopter's transition to Australian Accounting Standards, except as specified in Appendices B–E.
10 Except as described in paragraphs 13–19 and Appendices B–E, an entity