The AASB has issued ED 129 ‘Disclosing the Impact of Adopting AASB Equivalents to IASB Standards’ with a comment period ending 31 January 2004. Under the proposals companies will require to disclose the impacts of adoption of the Year 2005 Standards in reporting periods ending on or after 30 June 2004. The proposed disclosures include explanations of changes in accounting policies and the provision of any known or reliably estimable quantitative information relevant to assessing those expected future impacts on reported financial position and future financial performance.
This ED appears in the context of indications from ASX and ASIC about the continuous disclosure implications of adopting the Year 2005 Standards.
While the ED acknowledges that reliable estimation of future financial effects is considered impracticable when it cannot be performed after making every reasonable effort to do so some companies have expressed concerns about the nature and timing of the disclosures required.
Could you please provide views on the impact of the ED 129 proposals to g100tech@bigpond.com by 23 January 2004.
The IASB has indicated that it remains on schedule to deliver its ‘stable platform’ Standards at the end of March 2004. Following press comment about the potential delays in meeting this timetable and the consequential impact of the issue of AASB equivalents to IASB Standards, National Executive decided to write to the FRC and the AASB about contingency planning in the event of delays in issuing Standards.
The AASB has announced that it will formally make all the Year 2005 Standards at the same time. However, it will post Standards on its web site as Pending Standards as they are finalized. The AASB has agreed Pending Standards on Post-Balance Date Events, Cash Flow Statements, Foreign Currency, Borrowing Costs and Agriculture. It is understood that these will be posted shortly.
The IASB has posted provisional Standards IAS 32 and IAS 39 on its web site. The AASB will post AASB equivalents on its web site this week. Provisional IAS 39 does not include requirements relating to portfolio hedging which is under consideration.
The IASB and AASB propose to issue ED6 ‘Exploration for and Evaluation of Mineral Resources’ in January and the final Standard by September 2004. While the IASB, which seeks to ‘grandfather’ existing GAAP, does not view the proposed Standard as part of the ‘stable platform’, the outcome and timing of the project is significant for Australian companies. On the basis of the present schedule the precise requirements for Australian companies in the extractive industries will be uncertain until the Standard is issued.
Member organisations who did not respond to the Questionnaire will be requested to do so in order to obtain more comprehensive information about adoption/use of the Code by member companies.
Geoff Harris
December 2003
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