20 Dec. 2012
The AASB extends relief from consolidation and the equity method for Tier 2 entities
The AASB approved Australian Accounting Standard AASB 2012-11 Amendments to Australian Accounting Standards – Reduced Disclosure Requirements and Other Amendments on 18 December 2012.
The Standard has now been published on the AASB website. AASB 2012-11 applies to annual reporting periods beginning on or after 1 July 2013. Earlier application of the Standard is permitted, with some conditions.
Purpose of the amendments
AASB 2012-11 makes amendments to AASB 10 Consolidated Financial Statementsand AASB 128 Investments in Associates and Joint Ventures to extend relief from consolidation and the equity method for entities complying with Australian Accounting Standards – Reduced Disclosure Requirements. These amendments reflect those made previously to now-superseded Standards in AASB 2011-6Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation – Reduced Disclosure Requirements.
AASB 2012-11 also makes editorial corrections to reduced disclosure requirements for entities preparing general purpose financial statements under Australian Accounting Standards – Reduced Disclosure Requirements. These corrections do not change any of the requirements of the Standards. These corrections relate to:
- AASB 1 First-time Adoption of Australian Accounting Standards;
- AASB 2 Share-based Payment;
- AASB 8 Operating Segments;
- AASB 107 Statement of Cash Flows;
- AASB 133 Earnings per Share; and
- AASB 134 Interim Financial Reporting.
The Standard also makes an editorial correction to AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements to ensure that AASB 124 Related Party Disclosures has the same wording for all entities required to apply that Standard. The correction does not change any of the requirements.