Document ID: chunk:federal_register_of_legislation:F2023C00188:reg:7:p16
Version: federal_register_of_legislation:F2023C00188
Segment Type: reg
Provision Reference: reg 7 (pt 16/91)
Character Range: 50318–53436

is affected in the current reporting period by the application of this Standard as compared to AASB 1004 Contributions before the change; and

(b)                   an explanation of the reasons for significant changes identified in paragraph C7(a).

Assets acquired for significantly less than fair value

C8                   Assets acquired for consideration that was significantly less than fair value principally to enable the entity to further its objectives may have been measured on initial recognition under other Australian Accounting Standards at a cost that was significantly less than fair value.  As a practical expedient, such assets are not required to be remeasured at fair value, whether the entity elects to apply this Standard retrospectively in accordance with paragraph C3(a) or C3(b).

Leases with significantly below-market terms and conditions

Leases classified as operating leases

C9                   If an entity applies this Standard before applying AASB 16 Leases, and notwithstanding the requirements in paragraph C3, for leases that (1) at inception had significantly below-market terms and conditions principally to enable the entity to further its objectives and (2) were classified as operating leases in accordance with AASB 117 Leases, the entity shall not apply the requirements of this Standard to recognise any asset or income.  Instead, the entity shall continue to apply its accounting policy under AASB 117 to those operating leases.  On transition to AASB 16 Leases, the entity shall apply the transition requirements of that Standard to leases classified as operating leases in accordance with AASB 117.

Leases classified as finance leases

C10                If an entity elects to measure a class of right-of-use assets at initial recognition at fair value and applies this Standard before applying AASB 16, for leases that (1) at inception had significantly below-market terms and conditions principally to enable the entity to further its objectives and (2) were classified as finance leases in accordance with AASB 117, and if an entity elects to apply this Standard in accordance with:

(a)                    paragraph C3(a) – the entity shall:

(i)                     measure each leased asset in the class at fair value at the beginning of the earliest period presented;

(ii)                   measure the lease liability in accordance with AASB 117;

(iii)                 recognise any related items in accordance with paragraph 9; and

(iv)                 recognise any income arising as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at the beginning of the earliest period presented; or

(b)                   paragraph C3(b) – the entity shall:

(i)                     measure each leased asset in the class at fair value at the date of initial application of this Standard;

(ii)                   measure the lease liability in accordance with AASB 117;

(iii)                 recognise any related items in accordance with paragraph 9; and

(iv)                 recognise any income arising