Wednesday, December 22, 2021
AASB 2021-7 again defers (to 1 January 2025) the amendments to AASB 10 and AASB 128 relating to the sale or contribution of assets between an investor and its associate or joint venture. The Standard also includes editorial corrections.
The amendments to AASB 10 Consolidated Financial Statements and AASB 128 Investments in Associates and Joint Ventures were originally made in AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture. The amendments were later deferred indefinitely by the IASB. Due to legal requirements, the AASB is unable to defer the amendments indefinitely.
As the IASB’s amendments continue to be deferred indefinitely, AASB 2021-7 further defers the amendments to annual periods beginning on or after 1 January 2025 instead of 1 January 2022. Consistent with the IASB’s approach, the amendments can still be applied by an entity in advance of this new mandatory application date.
AASB 2021-7 also makes editorial corrections to various Australian Accounting Standards, including Interpretations, and several other pronouncements. The corrections include corrections made by the IASB to IFRS Standards since December 2017.
AASB 2021-7 applies to annual periods beginning on or after 1 January 2022. However, the corrections to AASB 17 Insurance Contracts apply to annual periods beginning on or after 1 January 2023.