Document ID: chunk:federal_register_of_legislation:F2025C00207:front:0:p23
Version: federal_register_of_legislation:F2025C00207
Segment Type: other
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Character Range: 63939–67152

contingency affecting the purchase consideration shall be recognised in retained earnings.
(j) In accordance with its previous GAAP, the first-time adopter may not have consolidated a subsidiary acquired in a past business combination (for example, because the parent did not regard it as a subsidiary in accordance with previous GAAP or did not prepare consolidated financial statements). The first-time adopter shall adjust the carrying amounts of the subsidiary's assets and liabilities to the amounts that Australian Accounting Standards would require in the subsidiary's statement of financial position. The deemed cost of goodwill equals the difference at the date of transition to Australian Accounting Standards between:
(i) the parent's interest in those adjusted carrying amounts; and
(ii) the cost in the parent's separate financial statements of its investment in the subsidiary.
(k) The measurement of non-controlling interests and deferred tax follows from the measurement of other assets and liabilities. Therefore, the above adjustments to recognised assets and liabilities affect non-controlling interests and deferred tax.
C5 The exemption for past business combinations also applies to past acquisitions of investments in associates, interests in joint ventures and interests in joint operations in which the activity of the joint operation constitutes a business, as defined in AASB 3. Furthermore, the date selected for paragraph C1 applies equally for all such acquisitions.

Appendix D
Exemptions from other Australian Accounting Standards
This appendix is an integral part of the Standard.
D1 An entity may elect to use one or more of the following exemptions:
(a) share-based payment transactions (paragraphs D2 and D3);
(b) [deleted]
(c) deemed cost (paragraphs D5–D8B);
(d) leases (paragraphs D9 and D9B–D9E);
(e) [deleted]
(f) cumulative translation differences (paragraphs D12–D13A);
(g) investments in subsidiaries, joint ventures and associates (paragraphs D14–D15A);
(h) assets and liabilities of subsidiaries, associates and joint ventures (paragraphs D16 and D17);
(i) compound financial instruments (paragraph D18);
(j) designation of previously recognised financial instruments (paragraphs D19–D19C);
(k) fair value measurement of financial assets or financial liabilities at initial recognition (paragraph D20);
(l) decommissioning liabilities included in the cost of property, plant and equipment (paragraphs D21 and D21A);
(m) financial assets or intangible assets accounted for in accordance with Interpretation 12 Service Concession Arrangements as identified in AASB 1048 Interpretation of Standards (paragraph D22);
(n) borrowing costs (paragraph D23);
(o) [deleted]
(p) extinguishing financial liabilities with equity instruments (paragraph D25);
(q) severe hyperinflation (paragraphs D26–D30);
(r) joint arrangements (paragraph D31);
(s) stripping costs in the production phase of a surface mine (paragraph D32);
(t) designation of contracts to buy or sell a non-financial item (paragraph D33);
(u) revenue (paragraphs D34 and D35); and
(v) foreign currency transactions and advance consideration (paragraph D36).
An entity shall not apply these exemptions by analogy