The long-awaited Australian Government Green Paper on emissions trading confirmed the AASB's views on how to deal with the accounting. However, it is pleasing to note that the IASB has now put emissions trading on its agenda, at our urging and urging from European standard setters, and proposes that a standard will be in place by 2010. The AASB will keep a watchful eye on the progress of this standard, in case the date is not achieved.

In late July, the AASB held a successful joint meeting with the New Zealand standard-setter. A joint decision was made to move forward with the development of an exposure draft on non-exchange revenue, based on the IPSASB 23 standard. You can read more about this update in the news section.

The new AASB website has sparked terrific responses thus far; and we hope it continues to improve. Soon we will be launching the new search feature, which will make identifying the right standard/s for particular reporting periods easier. Look out for more information on this soon.

On another note, after five years as Chairman of the AASB, I have decided to retire at the end of October 2008, at the expiration of my current contract. Treasury is currently going through the process of seeking a replacement. It has been a privilege to serve as Chairman of the AASB for the past five years, in a time of such dramatic change to Australian financial reporting, and I wish the AASB well for the future.

At the recent Board meeting, held jointly in Auckland with the New Zealand Financial Reporting Standards Board, the Boards discussed practical examples of how ‘advance receipts’ would be identified and treated under IPSAS 23 Revenue from Non-Exchange Transactions (Taxes and Transfers). The Boards generally supported IPSAS 23 on this issue, and requested the project team develop draft guidance to clarify when a transfer arrangement becomes binding (which is how IPSAS 23 describes advance receipts in respect of transfers). This would extend the circumstances in which liabilities would be recognised by transferees under non-exchange transactions in comparison with the present requirements in Accounting Standard AASB 1004 Contributions. Read more

Whilst emission trading is the hot topic receiving media attention, this attention seems to be focussed on the impact of such a scheme on Australian consumers and businesses. The AASB staff are focussed on a different aspect: how to account for various elements of an Emission Trading Scheme (ETS), such as carbon allowance permits and emission obligations. Read more

The AASB published Invitation to Comment ITC 12 in May 2007, containing the IASB's ED of A Proposed IFRS for SMEs (IASB ED) and the AASB's proposals for a revised differential reporting regime in Australia.

The Board received considerable feedback in response to ITC 12. The Board began re-deliberating the ITC 12 proposals in November 2007, in light of comments received. Click here to read a summary of the Board’s tentative decisions to date. Read more

At its August 2008 meeting, the AASB will consider a draft version of an exposure draft (ED) for a replacement Standard for AAS 25.

Consistent with the AASB’s transaction-neutral policy, the ED will propose that a superannuation plan or approved deposit fund prepare general purpose financial statements in accordance with applicable Australian Accounting Standards to the extent that the requirements in other Standards are not inconsistent with the requirements in the ED.

The ED will also propose some reporting requirements unique to superannuation plans and approved deposit funds.Read more

The AASB and FRSB held a joint meeting in Auckland on 30-31 July 2008. The meeting continued the ongoing cooperation of the Boards with the objective of harmonising requirements.

The principal matters discussed by the Boards included:

• the respective conceptual framework projects of the IASB and the IPSASB and the potential impacts of the IASB’s project on not-for-profit entities;
• developing a high-level principle for determining whether to modify IFRSs in respect of not-for-profit entities;
• an AASB submission to the IPSASB on service concession arrangements;
• developing a joint ED dealing with revenue from non-exchange transactions based on IPSAS 23;
• options for dealing with accounting for emission trading schemes, should the IASB project not progress in a timely manner.

The Boards also received reports on the activities of the IASB, SAC and IPSASB and presentations on the IPSASB project on long-term fiscal sustainability and Phase B of the IASB’s project on financial statement presentation.

Sabine Schuhrer
Assistant Project Manager

Sabine joined the AASB as a Graduate Intern after completing her studies as Diplom-Kauffrau at the University of Mannheim, Germany in 2005. She majored in tax, public and non-profit management and economic geography.

During her year as a graduate intern with the AASB, she worked on the GAAP/GFS Harmonisation Project (AASB 1049), Insurance Contracts and Land Under Roads.

She later accepted a permanent position at the AASB, and went on a secondment to the South Australian Auditor General’s Department to gain experience in public sector accounting and audit. 

Sabine has since returned to the AASB where she is now working on projects such as Related Party Disclosures by the Not-For-Profit Public Sector, Heritage Assets, Agriculture, Cash-Flow Statements, Discontinued Operations, Accounting Policies and Performance Reporting.

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Comments due to AASB by 25 August 2008
ITC 17 Request for Comment on IASB Discussion Paper Preliminary Views on an improved Conceptual Framework for Financial Reporting: The Reporting Entity

ED 164 An improved Conceptual Framework for Financial Reporting: The Objective of Financial Reporting and Qualitative Characteristics and Constraints of Decision-useful Financial Reporting Information

The AASB met with the FRSB in New Zealand, 30-31 July 2008

AASB Assistant Project Manager, Raymond Yu presented to second-year accounting students at Latrobe University on 7 August 2008