The following table lists accounting standards made by the Australian Accounting Standards Board (AASB) and details the extent to which the Australian standards have been harmonised with international accounting standards (IAS). The Australian standards listed in the table have the force of law for the purposes of the Corporations Law and must be used by entities that are required to prepare financial statements in accordance with the requirements of the Corporations Law.
|Disclosure standard: Private sector compliance with independently established and high quality national accounting standards.|
|AASB No.||Title||Purpose||Operative date||Harmonised with IAS?|
|1001||Accounting Policies||To prescribe the concepts that guide the selection, application and disclosure of accounting policies and to require specific disclosures to be made in relation to the accounting policies adopted in the preparation and presentation of the financial report.||In force; revised for years ending on or after 31 December 1999.||Compliance with AASB 1001 ensures compliance with IAS 1 (Presentation of Financial Statements) to the extent that IAS 1 deals with accounting policies.|
|1002||Events Occurring After Reporting Date||To prescribe the events occurring after reporting date for which the effects must be reflected in the financial report; to prescribe the events occurring after reporting date for which the effects must not be recognised in the financial report; and to require specific disclosures in respect of events occurring after reporting date.||In force||AASB 1002 covers the scope of IAS 10 (Contingencies and Events Occurring After Balance Sheet Date) to the extent that IAS 10 deals with events occurring after reporting date.
Compliance with AASB 1002 ensures compliance with IAS 10 to the extent that IAS 10 deals with events occurring after reporting date, with one exception (details of which are set out in note (a)).
|1003||Withdrawn replaced by AASB 1012|
|1004||Revenue||To prescribe the accounting treatment of revenues arising from various types of transactions or other events; and to require certain disclosures to be made in relation to revenues.||In force; revised for years ending on or after 30 June 1999.||Compliance with AASB 1004 ensures compliance with IAS 18 (Revenue).
However, AASB 1004's treatment of contributions as revenues is not in conformity with IAS 20 (Accounting for Government Grants and Disclosure of Government Assistance), which requires grants to be treated as income over the periods necessary to match them with the related costs which they are intended to compensate, on a systematic basis, and specifically requires grants related to assets to be treated as deferred income or as deductions from the carrying amounts of the assets.
|1005||Financial Reporting by Segments||To require disclosure of information about the material industry segments and material geographical segments in which a company operates.||In force||ED 90 (Segment Reporting), which proposes amendments to AASB 1005 for the purpose of harmonising it with IAS 14 (Segment Reporting), was issued for comment in March 1998.|
|1006||Interests in Joint Ventures||To prescribe the accounting treatment for a venturer's interests in joint ventures; and to require a venturer to make specific disclosures about its interests in joint ventures.||In force; revised for years ending on or after 31 December 1999.||Compliance with AASB 1006 ensures compliance with IAS 31 (Financial Reporting of Interests in Joint Ventures).|
|1007||Withdrawn replaced by AASB 1026|
|1008||Leases||To prescribe the accounting treatment for leasing transaction; and to require specific disclosures about leasing transactions.||In force; revised for years ending on or after 31 December 1999.||Compliance with AASB 1008 ensures compliance with IAS 17 (Leases).|
|1009||Construction Contracts||To prescribe the accounting treatment of construction contracts by contractors; and to require specific disclosures to be made about construction contracts by contractors.||In force||Compliance with AASB 1009 ensures compliance with IAS 11 (Construction Contracts).|
|1010||Accounting for the Revaluation of Non-Current Assets||To prescribe the circumstances in which non-current assets may be revalued and the treatment of such revaluations in the accounting records.||In force||ED 92 (Revaluation of Non-Current Assets), which proposes amendments to AASB 1010 for the purpose of harmonising it with IAS 16 (Property, Plant and Equipment) to the extent that IAS 16 deals with revaluations of, and disclosures relating to, non-current assets, was issued for comment in June 1998.|
|1011||Accounting for Research and Development Costs||Requires the application of a method of accounting under which research and development costs are matched against related benefits when such benefits are expected beyond any reasonable doubt.||In force||Work on harmonisation of this topic delayed pending completion of IASC project on intangible assets (issued as IAS 38 in September 1998).|
|1012||Foreign Currency Translation||Ensures that the results of a company's exposure to foreign exchange currency movements are reflected in financial statements.||In force||ED 86 Foreign Currency Translation), which proposes amendments to AASB 1012 for the purpose of harmonising it with IAS 21 (The Effects of Changes in Foreign Exchange Rates), was issued for comment in December 1997.|
|1013||Accounting for Goodwill||To specify the manner of accounting for goodwill and discount on acquisition on the acquisition of an entity; and to require disclosure of information relating to goodwill.||In force||Work on harmonisation of this topic delayed pending completion of IASC project on intangible asset and the consequential changes needed to IAS 22. The new intangible assets standard (IAS 38) was issued in September 1998.|
|1014||Set-off and Extinguishment of Debt||To specify when a debt is to be accounted for as having been extinguished; and to prescribe the method of accounting for the extinguishment of debt.||In force||Compliance with AASB 1014 ensures compliance with the set-off criteria contained in IAS 32 (Financial Instruments: Disclosure and Presentation), except as outlined in note (b).|
|1015||Accounting for the Acquisition of Assets||To specify the accounting treatment to be applied in respect of all acquisitions of assets by reflecting the economic substance of the exchange transaction that led to the acquisition, so that such acquisitions are accounted for on a consistent basis in the accounts and group accounts.||In force||ED 84 (Acquisition of Assets), which proposes amendments to AASB 1015 for the purpose of harmonising it with IAS 22 (Business Combinations), was issued for comment in October 1997.|
|1016||Accounting for Investments in Associates||To prescribe the circumstances in which investors must use the equity method of accounting for investments in associates; to prescribe how the equity method is to be applied; and to require certain disclosures in respect of investments in associates.||In force; revised for years ending on or after 30 June 1999.||Compliance with AASB 1016 ensures compliance with IAS 28 (Accounting for Investments in Associates), with the exceptions set out in note (c).|
|1017||Related Party Disclosures||To require disclosure in the financial report of information relating to relationships, transactions and balances with related parties of the reporting entity, including the remuneration and retirement benefits of directors, loans received by directors and other director-related transactions.||In force||An exposure draft which is expected to propose amendments to AASB 1017 for the purpose of harmonising it with the requirements of IAS 24 (Related Party Disclosures) is still being developed.|
|1018||Profit and Loss Accounts||To require the inclusion in the determination of the profit or loss of all items of revenue and expense (including adjustments relating to prior financial years); and to require disclosure in the profit and loss account of information about the profit or loss.||In force||ED 93 (Statement of Financial Performance and Ancillary Amendments), which proposes amendments to AASB 1018 for the purpose of harmonising it with IAS 8 (Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies) to the extent that IAS 8 deals with the matters covered by AASB 1018, was issued for comment in July 1998.|
|1019||Inventories||To specify the method of measuring inventories, including the manner in which costs are to be assigned to inventories; to specify the recognition of expenses relating to inventories; and to require specific disclosures to be made in respect of inventories.||In force; revised for years ending on or after 30 June 1999.||Compliance with AASB 1019 ensures compliance with IAS 2 (Inventories), with the exception noted in note (d).|
|1020||Accounting for Income Tax (Tax-effect Accounting)||To specify the method for determining income tax expense, provision for income tax, provision for deferred income tax and future income tax benefit; and to require appropriate disclosure in the accounts and group accounts.||In force||ED 87 (Income Taxes), which proposes amendments to AASB 1020 for the purpose of harmonising it with IAS 12 (Income Taxes), was issued for comment in December 1997.|
|1021||Depreciation||To require the recognition of assets with physical substance that are expected to be used during more than one financial year and which meet specified criteria; to require the consumption or loss of future economic benefits embodied in non-current assets with limited useful lives to be recognised; and to require disclosure in the financial report of information in relation to depreciable non-current assets and the allocation of the depreciable amount.||In force||Compliance with AASB 1021 ensures compliance with: IAS 4 (Depreciation Accounting); and
IAS 16 (Property, Plant and Equipment) to the extent that IAS 16 deals with the recognition and depreciation of physical non-current assets which are expected to be used during more than one financial year.
|1022||Accounting for the Extractive Industries||To specify the accounting treatments for particular transactions and events relating to extractive industry operations; and to require disclosure of information relating to extractive industry operations.||In force||No equivalent IAS standard.|
|1023||Financial Reporting of General Insurance Activities||To specify the manner of accounting for the general insurance activities of an entity and for the investment activities of the entity integral to those general insurance activities; and to require disclosure of information relating to general insurance activities.||In force||No equivalent IAS standard.|
|1024||Consolidated Accounts||To identify for financial reporting purposes parent entities and subsidiaries; and to prescribe the circumstances in which consolidated accounts are to be prepared and the financia
l information to be included in those accounts.
|In force||An exposure draft which is expected to propose amendments to AASB 1024 for the purpose of harmonising it with the requirements of IAS 27 (Consolidations) is still being developed.|
|1025||Application of the Reporting Entity Concept and Other Amendments||To amend the citation, interpretation provisions, application provisions and definitions in certain approved accounting standards.||In force||No equivalent IAS standard.|
|1026||Statement of Cash Flows||To require a statement of cash flows to be included in financial reports; and to specify the manner in which a statement of cash flows is to be prepared.||In force||Compliance with AASB 1026 ensures compliance with IAS 7 (Cash Flow Statements).|
|1027||Earnings per Share||To prescribe the method of calculation of basic earnings per share and diluted earnings per share; and to require disclosure of basic earnings per share and diluted earnings per share and other related information.||In force||ED 85 (Earnings per Share), which proposes amendments to AASB 1027 for the purpose of harmonising it with the requirements of IAS 33 (Earnings per Share), was issued for comment in October 1997.|
|1028||Accounting for Employee Entitlements||To prescribe the methods to be used when accounting for employee entitlements in the preparation of the accounts and consolidated accounts; and to establish requirements for the disclosure of information about employee entitlements in the accounts and consolidated accounts.||In force||ED 97 (Employee Benefits), which proposes amendments to AASB 1028 for the purpose of harmonising it with the requirements of IAS 19 (Employee Benefits) other than the recognition and measurement of superannuation and post-employment medical benefits, was issued for comment in October 1998.|
|1029||Half-year Accounts and Consolidated Accounts||To prescribe reporting requirements for half-yearly accounts or consolidated accounts of disclosing entities.||In force||ED 96 (Interim Financial Reporting), which proposes amendments to AASB 1029 for the purpose of harmonising it with IAS 34 (Interim Financial Reporting) was issued for comment in October 1998.|
|1030||Application of Accounting Standards to Financial Year Accounts and Consolidated Accounts of Disclosing Entities other than Companies||To prescribe requirements for the preparation and presentation of financial year accounts or consolidated accounts required by the Corporations Law of disclosing entities which are not companies.||In force||No equivalent IAS standard.|
|1031||Materiality||To define materiality; to explain the role of materiality in making judgements in the preparation and presentation of the financial reports; and to require the standards specified in other accounting standards to be applied where information resulting from their application is material.||In force||No equivalent IAS standard.|
|1032||Specific Disclosures by Financial Institutions||To require specified disclosures in the financial report of a financial institution.||In force||Compliance with AASB 1032 ensures compliance with IAS 30 (Disclosures in the Financial Statements of Banks and Similar Financial Institutions), with the exceptions detailed in note (e).|
|1033||Presentation and Disclosure of Financial Instruments||To prescribe certain financial report presentation requirements for financial instruments and to require disclosure in the financial report of information concerning financial instruments.||In force||Compliance with AASB 1033 ensures compliance with IAS 32 (Financial Instruments: Disclosure and Presentation), with the exceptions detailed in note (f).|
|Information to be Disclosed in Financial Reports||To prescribe the information to be included in profit and loss accounts and balance sheets prepared in accordance with the requirements of the Corporations Law.
(Note: 1035 makes a technical amendment to 1034.)
|In force||No IAS standard that is directly equivalent.|
|1036||Borrowing Costs||To prescribe the accounting treatment of borrowing costs; to prescribe the methods to be used to allocate borrowing costs to individual qualifying assets; and to require certain disclosures to be made about borrowing costs.||In force||Compliance with AASB 1036 ensures compliance with IAS 23 (Borrowing Costs).|
|1037||Self-Generating and Regenerating Assets||To prescribe rules for the valuation of SGARAs; to specify the manner in which changes in valuation are to be treated in the accounts; and to specify the disclosures to be made in respect of SGARAs.||Applies to years ending on or after 30 June 2000.||No equivalent IAS standard.|
|1038||Life Insurance Business||To prescribe the methods to be used for reporting on life insurance business in the financial report; and to require disclosures about life insurance business in the financial report.||Applies to years ending on or after 31 December 1999.||No equivalent IAS standard.|
|1039||Concise Financial Reports||To specify the minimum content of a concise financial report.||In force||No equivalent IAS standard.|
International accounting standards for which there are no equivalent Australian standards
Issues not covered in an Australian standard
|IAS 15||Information Reflecting the Effects of Changing Prices||Whole topic.||Not listed for harmonisation.|
|IAS 19||Employment Benefits||The recognition and measurement of superannuation and post-employment medical benefits.||Equivalent requirements to be included in an Australian standard.|
|IAS 26||Accounting and Reporting by Retirement Benefit Plans||Whole topic.||Falls outside the scope of the Corporations Law and, accordingly, is not currently listed for harmonisation. However, there is an accounting profession standard (AAS 25 Financial Reporting by Superannuation Plans) which is consistent with IAS 26.|
|IAS 29||Financial Reporting in Hyperinflationary Economies||All issues except those addressed in ED 86 (Foreign Currency Translations), which proposes amendments to AASB 1012.||Except to the extent that the topic will be covered by AASB 1012, this matter is not listed for harmonisation.|
|IAS 35||Discontinuing Operations||Whole topic.||ED 95 (Discontinuing Operations) was issued for comment in October 1998.|
|IAS 36||Impairment of Assets||Whole topic.||An exposure draft proposing harmonisation to be prepared.|
|IAS 37||Provisions, Contingent Liabilities and Contingent Assets||Whole topic.||ED 88 (Provisions and Contingencies) was issued for comment in December 1997.|
|IAS 38||Intangible Assets||Whole topic (except to the extent that it is covered by AASB 1011).||Scheduled for harmonisation.|
|IAS 39||Financial Instruments: Recognition and Measurement||Whole topic.||The AASB has not set a timetable for the harmonisation of this topic.|
(a) The exception relates to an event occurring after reporting date that provides evidence that the going concern basis is not appropriate after the reporting date. IAS 10 requires the financial effect of the event to be recognised in the financial report, whereas AASB 1002 requires the financial effect of the event to be disclosed. (The different approach in AASB 1002 is to ensure that the requirements of the standard do not conflict with the provisions of the Corporations Law, which require a financial report to provide a true and fair view of the financial position of an entity as at the reporting date and of the results of the entity for the period ending on that date.)
(b) IAS 32 does not allow set-off when financial assets are set aside in a trust by a debtor for the purpose of discharging an obligation if the assets have not been accepted by the creditor in settlement of the obligation. AASB 1014 treats in-substance defeasances as extinguishing the liability when the prescribed conditions are satisfied.
(c) There are two areas of difference between AASB 1016 and IAS 28:
(i) IAS 28 requires the equity method to be applied in the investor's own financial report where the equity method is applied in the consolidated financial report. AASB 1016 requires the cost method to be applied in the investor's own financial report except where a consolidated financial report is not required to be prepared.
(ii) IAS 28 requires the carrying amount of an investment to be written down to its recoverable amount which is determined as the higher of its value in use and net selling value. AASB 1016 provides that the carrying amount of the investment must not exceed its recoverable amount but does not specify how the recoverable amount is to be determined.
(d) IAS 2 requires the disclosure of the cost of inventories recognised as an expense during the reporting period; or the operating costs applicable to revenues, recognised as an expense during the reporting period, classified by their nature. This disclosure requirement will be included in a forthcoming AASB standard that harmonises with the requirements of IAS 1 (Presentation of Financial Statements).
(e) There are two areas of difference between AASB 1032 and IAS 30:
(i) Where there are differences between the requirements of IAS 30 and IAS 32, AASB 1032 and other standards conform with the requirements of IAS 32, rather than with the requirements of IAS 30.
(ii) A parent entity need comply with only the basic profit and loss account and balance sheet disclosure requirements of AASB 1032 when the parent entity's financial report is presented with the economic entity's financial report, and the economic entity applies AASB 1032. In contrast, IAS 30 does not require the preparation of parent entity financial reports or contain any exemption for parent entity reports when they are prepared. There is no difference in the scope of AASB 1032 and IAS 30 in application to economic entity financial reports, which are the focus of the AASB's harmonisation policy.
(f) There are two areas of difference between AASB 1033 and IAS 32:
(i) The requirement to classify component parts of compound instruments separately does not apply to instruments issued prior to 1 January 1998. IAS require retrospective application of component part accounting only when initial adjustments are reasonably determinable. The AASB considers that in many cases it would be difficult to determine the initial adjustments required for retrospective application. Accordingly, AASB 1033 does not require (but does allow) retrospective application. The significance of this exception will diminish over time.
(ii) A parent entity need not comply with the disclosure requirements of AASB 1033 when the parent entity's financial report is presented with the economic entity's financial report, and the economic entity applies AASB 1033. In contrast, IAS 32 does not require the preparation of parent entity financial reports or contain any exemption for parent entity reports when they are prepared. There is no difference in the scope of AASB 1033 and IAS 32 in application to economic entity financial reports, which are the focus of the AASB's harmonisation policy.
This table has been compiled by Treasury staff using information contained in:
(a) AASB-series accounting standards made by the Australian Accounting Standards Board (AASB);
(b) draft accounting standards (referred to as exposure drafts or EDs) prepared by the AASB and the Public Sector Accounting Standards Board;
(c) information on the web site of the Australian Accounting Research Foundation; and
(d) information on the web site of the International Accounting Standards Committee.