Document ID: chunk:federal_register_of_legislation:F2025C00207:front:0:p25
Version: federal_register_of_legislation:F2025C00207
Segment Type: other
Provision Reference: 
Character Range: 69450–72333

fair value and use that fair value as its deemed cost at that date.
D6 A first-time adopter may elect to use a previous GAAP revaluation of an item of property, plant and equipment at, or before, the date of transition to Australian Accounting Standards as deemed cost at the date of the revaluation, if the revaluation was, at the date of the revaluation, broadly comparable to:
(a) fair value; or
(b) cost or depreciated cost in accordance with Australian Accounting Standards, adjusted to reflect, for example, changes in a general or specific price index.
D7 The elections in paragraphs D5 and D6 are also available for:
(a) investment property, if an entity elects to use the cost model in AASB 140 Investment Property;
(aa) right-of-use assets (AASB 16 Leases); and
(b) intangible assets that meet:
(i) the recognition criteria in AASB 138 (including reliable measurement of original cost); and
(ii) the criteria in AASB 138 for revaluation (including the existence of an active market).
An entity shall not use these elections for other assets or for liabilities.
AusD7.1 Notwithstanding paragraphs D5–D7, where a lessee is a not-for-profit entity, the entity may elect to measure 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 at fair value at the beginning of the current period presented in the entity's first Australian-Accounting-Standards financial statements or at the previous GAAP valuation if that valuation broadly reflects that fair value.
D8 A first-time adopter may have established a deemed cost in accordance with previous GAAP for some or all of its assets and liabilities by measuring them at their fair value at one particular date because of an event such as a privatisation or initial public offering.
(a) If the measurement date is at or before the date of transition to Australian Accounting Standards, the entity may use such event-driven fair value measurements as deemed cost for Australian Accounting Standards at the date of that measurement.
(b) If the measurement date is after the date of transition to Australian Accounting Standards, but during the period covered by the first Australian-Accounting-Standards financial statements, the event-driven fair value measurements may be used as deemed cost when the event occurs. An entity shall recognise the resulting adjustments directly in retained earnings (or if appropriate, another category of equity) at the measurement date. At the date of transition to Australian Accounting Standards, the entity shall either establish the deemed cost by applying the criteria in paragraphs D5–D7 or measure assets and liabilities in accordance with the other requirements in this Standard.
D8A Under some national accounting requirements exploration and development costs