Appendix E
Australian Accounting Standards Board work programme
Progress made on 2007-08 work programme
The AASB's progress on its 2007-08 work programme is set out below:
Domestic not-for-profit and public sector projects
| Project | Status | Outcomes to 30 June 2008 |
|---|---|---|
| GAAP/GFS harmonisation — whole of government, including the GGS, PNFC and PFC sectors | AASB 1049 | In October 2007, the AASB issued a revised AASB 1049 to apply the GGS GAAP/GFS harmonisation principles to whole of governments. The standard also requires disclosure of GAAP/GFS harmonisation information for each sector. In June 2008, the AASB issued ED 163 Proposed Amendments to AASB 1049 for Consistency with AASB 101, for comment by 1 August 2008. The work the AASB has done to date completes phase 1 of the FRC strategic direction. |
| GAAP/GFS harmonisation — entities within the GGS | — | This project is phase 2 (the final phase) of the FRC's strategic direction. The AASB commenced its consideration of the consequences of the GGS and whole of government work on entities within the GGS. This is now a major project of the AASB. [The AASB decided (and the FRC concurred) that GAAP/GFS harmonisation principles should not be imposed on local governments, universities and GBEs.] |
| Short-term review of requirements relating to the public sector, including whole of government, government departments & local governments | AAS 27, AAS 29 and AAS 31 are now superseded | The AASB completed its short-term review of AASs 27, 29 and 31 by relocating, where necessary, the requirements from those standards, substantively unamended (with some exceptions), into topic-based standards. This resulted in the issue of three new topic-based standards, a revised standard, an amending standard and a revised Interpretation in December 2007. |
| Gaps in GAAP for public sector not-for-profit entities | Various standards | The AASB continued to monitor 'gaps in GAAP' that were put to it during the year by constituents. For example, the AASB considered an issue specific to defence inventory during the year and decided that it was unnecessary and inappropriate to amend AASB 102 Inventories in response to the issue. |
| Control of an entity (long-term) possibly incorporating administered items | AASB 127 & AASB 1050 | No progress was made during the year. The AASB concluded that this issue cannot be tackled in isolation because there is a wide range of cross-cutting issues relating to reporting entity and the definition of control, and in light of the IPSASB work on a conceptual framework. The project appears in the 'non-active projects (subject to resources)' section of the 2008-09 work program. |
| Public sector not-for-profit related party disclosures | — | Staff commenced researching the issues and preparing a project plan. |
| Disaggregated information | AASB 1052 & AASB 1049 | AASB 1052 was issued as a consequence of the AASB's short-term review of AASs 27 & 29, and AASB 1049 includes related requirements in a GAAP/GFS harmonisation context. No progress was made during the year on the fundamental review of the requirements. The fundamental review project appears in the 'non-active projects (subject to resources)' section of the 2008-09 work program. |
| Consolidation of for-profit entities into not-for-profit entities | Staff article on website | No progress was made during the year. The staff article on the issue was last updated in November 2005. The project, which will initially involve updating the staff article, appears in the 'agenda decisions to be made' section of the 2008-09 work program. |
| Measurement of contributions by owners | — | No progress was made during the year. The project appears in the 'non-active projects (subject to resources)' section of the 2008-09 work program. |
| Budget reporting | AASB 1049 | This project was progressed in relation to GGS and whole of government reporting requirements specified in AASB 1049 in the context of GAAP/GFS harmonisation. An extension of the project appears in the 'non-active projects (subject to resources)' section of the 2008-09 work program. |
| Performance indicators | — | No progress was made during the year. The project appears in the 'non-active projects (subject to resources)' section of the 2008-09 work program. |
| Not-for-profit entity definition | Definition used in existing AASB standards ITC 14 | The AASB issued ITC 14 on the terminology, definition and guidance relating to not-for-profit entities in December 2007, and subsequently conducted three roundtables (Melbourne, Sydney and Canberra). After considering the mixed responses to ITC 14, the AASB decided to retain the status quo for now, and reconsider the definition and guidance as part of a policy-level project focusing on the development of criteria for modifying IFRSs in respect of not-for-profit entities. |
Other domestic projects
| Project | Status | Outcomes to 30 June 2007 |
|---|---|---|
| Superannuation plans | AAS 25 (1993) | The AASB considered the main issues that would be addressed in a replacement standard for AAS 25 Financial Reporting by Superannuation Plans, which included consultation with industry participants, and is currently preparing an exposure draft. This is now a major project of the AASB. |
| Differential reporting/SMEs, including reporting entity & GPFR/SPFR | SAC 1 & SAC 2 ITC 12 | The IASB issued an exposure draft of a proposed IFRS for small and medium-sized entities in March 2007. The AASB issued ITC 12 incorporating the IASB's ED with a preface outlining possible ways in which an SMEs standard might be applied in Australia. The AASB's preface includes proposals for relying on the notion of General Purpose Financial Report (GPFR) rather than the reporting entity concept in determining the entities that should apply standards. The AASB's proposals would involve the revision or withdrawal of SAC 1 & SAC 2. The AASB conducted two roundtables (in Melbourne and Sydney in August 2007) and began redeliberating its proposals for a revised differential reporting regime in the light of comments received on its ITC 12. The AASB made some tentative decisions on the proposals and is expected to continue its redeliberations throughout 2008. The project continues to be a major project of the AASB. |
| Emission rights | — | The AASB staff closely monitored developments in relation to an Australian scheme and considered some of the potential accounting implications. The AASB urged the IASB to put the topic on its agenda as an urgent issue. The AASB monitored the IASB's project on the topic, which is in its very early stages. The project has the potential to become a major project of the AASB. |
| Compilations | Various compiled standards | Due to the ongoing amendment of existing standards, AASB staff prepared and published compiled versions of standards in order to facilitate their use and application. More than 20 compilations were published in 2007-08. |
Projects related to IASB adoption — substantive involvement
| Project | IASB status | Outcomes to 30 June 2008 |
|---|---|---|
| Extractive activities phase II | Research project | The AASB continued leading a team of National Standard Setters (Canada, Norway & South Africa) in developing draft recommendations for consideration by the IASB. The project team presented papers dealing with a range of accounting issues to IASB meetings in March and June 2008, with the objective of obtaining input to a discussion paper that is planned to be published at the end of 2008. |
| Intangible assets | Research project — agenda proposal | In accordance with the IASB/FASB MoU, AASB staff prepared a project proposal for consideration by the IASB, and presented it to that Board in December 2007. The IASB decided to not add the project to its active agenda at this time due to other priorities. With the aim of publishing the outcome of the research they undertook on 'the initial accounting for internally generated intangible assets' in developing the project proposal, AASB staff presented a draft paper to the National Standard Setters (NSS) meeting in March 2008. Work continued on refining the draft paper in response to NSS member comments. Furthermore, NSS commenced its consideration of whether to continue the work commenced by Australia, with AASB staff participating as a project team member rather than project leader, reflecting the limited resources available to the AASB. |
| Insurance contracts phase II | Active project — DP | The AASB reviewed the IASB's discussion paper Preliminary Views on Insurance Contracts and commented to the IASB in October 2007. AASB staff provided assistance to the IASB's project manager on insurance contracts in progressing the collation of comments on the discussion paper. |
| Revenue recognition | Convergence1 project | Monitored progress of the IASB and FASB. |
| Conceptual framework | Convergence project — ED & DP | In May 2008, the IASB issued an exposure draft on an improved conceptual framework for financial reporting: The Objective of Financial Reporting and Qualitative Characteristics and Constraints of Decision-useful Financial Reporting Information and a discussion paper Preliminary Views on an improved Conceptual Framework for Financial Reporting: The Reporting Entity. The AASB invited comments from Australian constituents on these IASB documents through ED 164 and ITC 17 respectively. The AASB staff also participated with the staff of National Standard Setters from Canada, New Zealand and the UK in gathering information about the potential impact of matters being considered by the IASB in its conceptual framework project if they were to be applied to not-for-profit and public sector entities. |
Projects related to IASB adoption — non substantive involvement
| Project | IASB status | Outcomes to 30 June 2008 |
|---|---|---|
| Fair value measurement guidance | Convergence project — DP | Monitored IASB's limited progress during the year — an IASB ED is expected in first half 2009. |
| Business combinations phase II | Revised IFRS 3 and IAS 27 | The AASB issued a revised AASB 3 and AASB 127 in March 2008 that incorporate the corresponding IASB standards. |
| Non-financial liabilities | Active project — DP | Monitored IASB's progress — a revised standard is not expected until 2010. |
| Consolidations | Active project (joint with FASB) | Monitored IASB's progress — an IASB ED is expected in quarter 4 2008. |
| Performance reporting stage A | Revised IAS 1 | The AASB issued an amended AASB 101 in November 2007 that incorporates the corresponding revised IAS 1. |
| Performance reporting stage B | Convergence project | Monitored IASB's limited progress during the year — an IASB DP is expected in quarter 3 2008. |
| Financial instruments — fundamental review | Research project — DP | Monitored IASB's progress. The IASB published a DP Financial Instruments with Characteristics of Equity in February 2008 [for comment by 5 September 2008] and a DP Reducing Complexity in Reporting Financial Instruments in March 2008 [for comment by 19 September 2008]. The AASB posted both DPs on its website requesting earlier comments to use as input to its own deliberations in developing a response to IASB. |
| Leases | Convergence project | Monitored IASB's limited progress during the year — an IASB DP is expected in quarter 4 2008. |
| Puttable instruments | Revised IAS 32 | The AASB issued a standard amending AASB 132 (among other standards) in March 2008 that incorporates the corresponding revised IAS 32. |
| Joint ventures | Convergence project — ED | The AASB responded to IASB ED 9 Joint Arrangements in January 2008. |
| Income tax | Convergence project | Monitored IASB's limited progress during the year — an IASB ED is expected in quarter 4 2008. |
| Post-employment benefits | Active project | Monitored IASB's limited progress during the year. |
| Earnings per share | Convergence project | Monitored IASB's progress — an exposure draft is expected in quarter 3 2008. |
| Cost of an investment in a subsidiary, jointly controlled entity or associate | Finalised project | Monitored IASB's progress — issued AASB ED 160, which incorporated the IASB proposals, in December 2007. IASB issued a standard in May 2008. As of June 2008, the Australian standard that will incorporate the IASB standard was being finalised for issue in July 2008. |
| Annual improvements project | Active project | Monitored IASB's progress — issued AASB ED 159, which incorporated the IASB proposals, in October 2007. IASB issued a standard in May 2008. As of June 2008, the Australian standards that will incorporate the IASB standard were being finalised for issue in July 2008. IASB is expected to issue an exposure draft on 2008 improvements in quarter 3 2008. |
IPSASB convergence projects
| Project | IPSASB status | Outcomes to 30 June 2008 |
|---|---|---|
| Conceptual framework — public sector perspectives | Active project | AASB staff finalised a paper on reporting entity for use by the IPSASB, made a presentation on the topic to the IPSASB, and provided comments to the IPSASB on papers dealing with other aspects of the project. |
| Service concessions | Active project — consultation paper | AASB staff commented on various drafts during the development of the IPSASB's consultation paper (March 2008). The AASB issued ITC 16 in April 2008 to request comments from constituents on the IPSASB's proposals. |
| Social benefits | Active project — various consultation documents | The AASB issued ITC 15, seeking comments on various IPSASB consultation documents, in April 2008. The AASB also commenced consideration of its response to the relevant IPSASB consultation documents. |
| Heritage assets | Inactive — consultation paper | AASB staff continued to monitor the IPSASB project. No substantive activity occurred during the year. The project is expected to be reactivated in first half 2009. The AASB amended AASB 116 as part of its short-term review of AASs 27, 29 and 31, including providing Australian implementation guidance. |
| Conceptual framework — public sector perspectives | Active project | AASB staff finalised a paper on reporting entity for use by the IPSASB, made a presentation on the topic to the IPSASB, and provided comments to the IPSASB on papers dealing with other aspects of the project. |
Other international projects
| Project | Status | Outcomes to 30 June 2008 |
|---|---|---|
| Non-exchange revenue | Active project (with NZ) | This topic is being addressed jointly with the FRSB. The AASB discussed various drafts of a comprehensive issues paper before deciding to consider developing an exposure draft based on the IPSASB's standard on the topic, IPSAS 23. This topic is the subject of a major 'domestic' joint project between the AASB and the FRSB. |
| New Zealand convergence and criteria for modifying IFRSs in respect of not-for-profit entities | As a consequence of the work undertaken in Australia and NZ in 2006-07, the two sets of standards have been converged to a significant degree | The Boards have undertaken to work together to remove as many of the remaining differences as possible in keeping with the need for Trans-Tasman cooperation on regulatory matters. The AASB and the FRSB have also agreed to share resources to the extent feasible and in most cases have allocated one or other of the Boards to be the prime Board responsible for monitoring the work of the IASB and the IPSASB. The AASB and FRSB have modified some IFRSs in their application to not-for-profit entities, without having developed a formal joint policy on the matter. The AASB progressed a project in consultation with the FRSB on developing a formal policy, which is expected to be published later in 2008. The policy is expected to evolve. |
| Conceptual framework — not-for-profit entity perspectives (shadowing IASB/FASB project — see above) | Monitoring | AASB staff participated in the NSS/IPSASB working group monitoring the IASB/FASB project from a not-for-profit/public sector perspective. |
Interpretations
| Project | Status | Outcomes to 30 June 2008 |
|---|---|---|
| Petroleum resource rent tax | Interpretation 1003 | The AASB issued Interpretation 1003 Australian Petroleum Resource Rent Tax in November 2007. |
| Employer accounting for taxes in superannuation liabilities | Panel | The topic scope was refined to only include superannuation contributions tax. An Interpretations Advisory Panel on the topic met on a number of occasions. Its recommendations are expected to be presented to the AASB shortly. |
| Service concessions | Interpretation 12 agenda decision | An Interpretations Advisory Panel made recommendations to the AASB concerning the relevance of Interpretation 12 to public sector grantors in service concession arrangements. The AASB decided to begin addressing the topic by inviting comments from constituents on an IPSASB consultation paper (see ITC 16, April 2008) — see also above under IPSASB convergence projects. |
Work program 2008-09
The format of the AASB 2008-09 work program differs from the format of the AASB 2007-08 work program. This change has been made to better distinguish between active and non-active projects.
The 2008-09 AASB work program includes:
Table 1: Active projects
Table 2: Non-active projects
Table 3: Agenda decisions to be made
The documents and actions noted are not a complete reflection of the matters the AASB will consider regarding each project. The timing and outcomes shown in the following tables are estimates that are subject to change.
The AASB will be involved with all the IASB and IPSASB projects in various capacities — only those of particular relevance to the AASB are included in Table 1: Active projects.
Projects may move from having substantive AASB involvement to having non-substantive involvement and vice versa depending on developments within those projects.
Project priorities
- H
- high
- grey shade
- highlights high priority topics for which resources are not available
- M
- medium
- L
- low
Glossary of abbreviations
- Std
- standard
- ED
- exposure draft
- ITC
- invitation to comment
- CP
- consultation paper
- DP
- discussion paper
- PS
- policy statement
- IP
- issues paper
- (r)
- revised
- na
- not available (because completion date is not disclosed by IASB or IPSASB)
- IASB
- International Accounting Standards Board
- FASB
- Financial Accounting Standards Board (USA)
- IPSASB
- International Public Sector Accounting Standards Board
- NSS
- National Standard Setters
- WSS
- World Standard Setters
- SAC
- Standards Advisory Council
- Subc
- subcommittee
- WG
- working group
- #
- A best estimate of the completion date of a standard or a revised standard, unless otherwise indicated
Table 1: Active projects
| Project | Priority | Status | Q3 2008 |
Q4 2008 |
Q1 2009 |
Q2 2009 plus |
Estimated completion date# | |
|---|---|---|---|---|---|---|---|---|
| Domestic not-for-profit and public sector | ||||||||
| 1 | GAAP/GFS harmonisation — WoG/GGS (consequences of AASB 101) | H | AASB 1049 | ED | Std(r) | Dec 2008 | ||
| 2 | GAAP/GFS harmonisation — entities within the GGS | H | AASB 1049 | ED | Std or Std(r) | Feb 2010 | ||
| 3 | Impairment of statutory receivables (gaps in GAAP no. 21) | M | AASB 139 | Consult | NA | |||
| 4 | Borrowing costs | H | AASB 123 | Consult | NA | |||
| 5 | Suitability of AASB 3 for combinations among NFPs | H | AASB 3 | Consult | Std(r) | June 2009 | ||
| 6 | Related party disclosures | H | IP | ED | Dec 2009 | |||
| 7 | NFP definition and guidance | M | ITC 14 Roundtables | Consult NZ FRSB | ED | Guidance | Jun 2009 | |
| Other domestic | ||||||||
| 8 | Superannuation plans | H | AAS 25 CP | ED | Std(r) | Mar 2009 | ||
| 9 | Differential reporting/SMEs (including reporting entity and GPFR/SPFR) | H | SAC 1 & SAC 2 ITC 12 | IPs | ED | Stds(r) SACs(r) | Dec 2009 | |
| 10 | Emissions trading scheme | H | Timetable to be established | NA | ||||
| 11 | Review of AASB policy statements | M | PS1-PS4 | Draft PSs(r) | PSs(r) | Mar 2009 | ||
| 12 | Compilations | H | Amending Stds | Ongoing | Ongoing | Ongoing | Ongoing | Ongoing |
| IASB — substantive involvement | ||||||||
| 13 | Extractive activities phase II (AASB-led research project) | H | AASB 6 | Present to IASB | DP | Dec 2008 (DP) | ||
| 14 | Insurance phase II (including participation in IASB project team) | H | AASB 4 AASB 1023(r) AASB 1038(r) ITC 13 | IP | ED | NA | ||
| 15 | Revenue recognition (including participation in IASB project team) | M | AASB 118 ITC (IASB DP) Q2 | NA | ||||
| 16 | Conceptual framework — objective and qualitative characteristics | M | Framework ITC 10 ED Q2 | NA | ||||
| 17 | Conceptual framework — elements and recognition | M | Framework | ITC (IASB DP) | NA | |||
| 18 | Conceptual framework — measurement | M | Framework | ITC (IASB DP) | NA | |||
| 19 | Conceptual framework — reporting entity | M | Framework ITC (IASB DP) Q2 | NA | ||||
| 20 | Actively monitor IFRS implementation | H | Relevant standards | |||||
| IPSASB convergence | ||||||||
| 21 | Conceptual framework — public sector perspectives |
H | Part of IPSASB Subc Member of NSS monitoring group | IP IPSASB CP (phase 1) | IP | IP | IP | NA |
| 22 | Service concessions |
H | Interp 12 Part of IPSASB Subc ITC (including IPSASB CP) Q2 | Comment to IPSASB | ED | NA | ||
| 23 | Social benefit obligations (including sustainability) |
H | AASB 137 ITC (including IPSASB ED on disclosure and CP) Q2 | Comment to IPSASB | Monitor IPSASB | Consider IPSAS | NA | |
| Other international | ||||||||
| 24 | Income from non-exchange transactions with NZ (including multi-year policy grants and voluntary services) |
H | AASB 1004 AASB 120 AASB 118 | Draft ED | ED | Jun 2009 | ||
| 25 | NFP criteria/NZ convergence |
M | Both jurisdictions converging with IASB GAAP | NFP criteria | IPs (not-for-profit paragraphs) | June 2010 | ||
| 26 | Conceptual framework — NFP entity perspectives (shadowing IASB/FASB project — see above) |
M | Part of NSS/IPSASB WG IP issued | NA | ||||
| 27 | Intangible assets (DP 'initial accounting for internally generated intangible assets' for review by NSS) |
M | AASB 138 AASB 3 NSS project team | Staff DP | Participate in any NSS work | Dec 2008 (DP) | ||
| Interpretations | ||||||||
| 28 | Employer accounting for taxes in superannuation liabilities |
H | AASB 119 Panel meetings | Consider panel recommendation | ||||
| 29 | Managed investment schemes (related party disclosures) |
H | AASB 124 Referred to IFRIC Report to Treasury | Monitor Treasury progress | ||||
Table 2: Non-active projects (subject to resources)
| Project | Priority | Status | Q3 2008 |
Q4 2008 |
Q1 2009 |
Q2 2009 plus |
Estimated completion date | |
|---|---|---|---|---|---|---|---|---|
| Domestic not-for-profit and public sector | ||||||||
| 1 | Control of an entity (including gaps in GAAP no. 10) |
H | AASB 127 | DP | ||||
| 2 | Administered items |
H | AASB 1050 | DP | ||||
| 3 | Disaggregated information |
M | AASB 1052 | IP | ||||
| 4 | Measurement of contributions by owners |
L | IP | |||||
| 5 | Budget reporting beyond GGS and WoG (gaps in GAAP no. 26) |
M | AASB 1049 | IP and ED | ||||
| 6 | Performance indicators (including gaps in GAAP no. 32 non-financial performance indicators, and consider NZ approach to statement of service performance) |
H | IP | |||||
| 7 | Review of interpretation 1038 contributions by owners made to wholly-owned public sector entities |
L | Interpretation 1038 | Interpretation (r) | ||||
| 8 | Compliance with parliamentary appropriations and other externally-imposed requirements |
L | AASB 1004 | ED | ||||
| 9 | Summary financial reports and MD&A |
L | NZ FRSB 39 | IP | ||||
| 10 | Other gaps in GAAP for public sector NFP entities |
Various Stds IP | Consult key constituents IPs on selected topics | |||||
| IASB — non-substantive involvement | ||||||||
| 11 | Cost of an investment |
L | ED 160 | Std(r) | ||||
| 12 | Fair value measurement guidance |
L | IASB DP | ED | ||||
| 13 | Non-financial liabilities |
L | AASB 137 ED 140 | AASB 137(r) AASB 119(r) | ||||
| 14 | Consolidations |
L | AASB 127 | ITC (IASB DP) | ED | |||
| 15 | Performance reporting stage B |
L | AASB 101 Advising IASB WG member ITC (IASB DP) | ED | ||||
| 16 | Financial Instruments — fundamental review |
L | AASB 139 Advising IASB WG member ITC (IASB DP) | |||||
| 17 | Liabilities and equity |
L | AASB 132 ITC (IASB DP) | |||||
| 18 | Leases |
L | AASB 117 | ITC (IASB DP) | ||||
| 19 | Financial instruments: Portions hedging |
L | ED 158 | AASB 139(r) | ||||
| 20 | Joint arrangements |
L | AASB 131 ED 157 | AASB 131(r) | ||||
| 21 | Income tax |
L | AASB 112 | ED | AASB 112(r) | |||
| 22 | Post-employment benefits |
L | AASB 119 | ITC (IASB DP) | ED | |||
| 23 | EPS: Treasury stock method |
L | AASB 133 | ED | AASB 133(r) | |||
| 24 | Related party disclosures |
L | AASB 124 | AASB 124(r) | ||||
| 25 | Improvements |
L | ED 159 Amending Std Q2 | ED | ||||
| 26 | Emissions trading schemes |
L | Timetable to be established | |||||
| 27 | Common control |
L | AASB 127 | Timetable to be established | ||||
| IPSASB convergence | ||||||||
| 28 | Heritage assets |
L | AASB 116 IPSASB CP | Monitor IPSASB |
Monitor IPSASB | Monitor IPSASB | IP | |
Table 3: Agenda decisions to be made
| Project | Priority yet to be determined | Status | Q3 2008 | Q4 2008 | Q1 2009 | Q2 2009 plus |
Estimated completion date | |
|---|---|---|---|---|---|---|---|---|
| Domestic not-for-profit and public sector | ||||||||
| 1 | Financial reporting by charities (note link to item 6 in Table 2. The project proposal will include consideration of whether the project should focus on disclosure issues given that recognition and measurement issues will be addressed in other projects.) |
AASB Standards | ||||||
| 2 | Consolidation of for-profit entities into NFP groups |
Staff article | ||||||
| 3 | Identifying cash generating units |
AASB 136 | ||||||
| 4 | Intangible assets established by governments (for example spectrum rights) |
AASB 138 | ||||||
| 5 | Current cost accounting for infrastructure assets |
AASB 116 | ||||||
| 6 | Complexity of financial instruments disclosures |
AASB 139 | ||||||
| 7 | GAAP/GFS interim reporting |
AASB 134 | ||||||
| 8 | Disclosures relating to dividend imputation credits |
AASB 101 | ||||||
| 9 | Currency (notes and coins) on issue |
|||||||
| Other domestic | ||||||||
| 10 | Prospective information (ex post and ex ante reporting, including prospectuses under Corporations Act) |
|||||||
| 11 | XBRL (staff led project assisting with the update of taxonomy) |
|||||||
| 12 | Disclosures framework |
|||||||
1 "Convergence' denotes a project aimed at achieving greater convergence between the IASB and the FASB.