Brief Summary of ED 156
Purpose
ED 156 presents the short-term outcome of the AASB’s review of the government reporting standards (AAS 27,29 and 31). The ED’s primary focus is to relocate the requirements from the AAS’s, substantively unamended, into the existing AASB standards. This ED sits within the context of the AASB’s longer term plan for review of the requirements for not-for-profit public sector entities.
Main features
The ED proposes that the AAS 27 requirements be dealt with in the following 3 ways:
The issue of 2 new standards to deal with
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Land under roads – retaining the current transitional relief for land under roads (up to 30 June 2008) and addressing the transition of land under roads into AASB 116 Property, Plant & Equipment; and (2) Disaggregated Disclosures – presented the current requirements from AAS 27 on disclosing classifications of assets, income and expenses according to function or activity;
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Amendments to a number of existing accounting standards to relocate some of the AAS27 requirements. Specifically these include:
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· AASB 3 Business Combinations – to clarify that local governments are reporting entities
· AASB 116 Property Plant & Equipment – to include a new Aus paragraph relating to infrastructure, cultural, community and heritage assets, and issue guidance that addresses reliable measurement, revaluations and depreciation of heritage assets
· AASB 127 Consolidated and Separate Financial Statements – to incorporate guidance on control of entities (currently in AAS 31)
· AASB 137 Provisions, Contingent Liabilities and Contingent Assets – to explicitly exclude from its scope obligations arising from local government and government existing public policies, budget policies, election promises or statements of intent.
· AASB 1004 Contributions – to include, in a separate section, the material relating to contributions from AAS 27,29 & 31, substantively unamended (some limited exceptions).
- Removal of the many AAS 27 paragraphs that the AASB believes are already adequately addressed in other existing accounting standards.
Application Date
The AASB is proposing application of the changes from 1 July 2008.
FinPro Submission to AASB regarding ED 156
ED 156 has been issued by the AASB and submissions were sought from interested parties. FinPro, on behalf of it's members provided the following submission:
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