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APN
annual report
2011
notes to the financial statements
APN News & Media Limited and Controlled Entities
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(continued)
(ab) Standards and interpretations issued but not yet effective
Certain new accounting standards and interpretations have been
published that are not mandatory for 31 December 2011 reporting
periods. The Group’s assessment of the impact of these new
standards and interpretations is set out below.
(i) AASB 10
Consolidated Financial
Statements
, AASB 11
Joint
Arrangements
, AASB 12
Disclosure of Interests in Other
Entities
, revised AASB 127
Separate Financial Statements
and
AASB 128
Investments in Associates and Joint Ventures
and
AASB 2011-7
Amendments to Australian Accounting Standards
arising from the Consolidation and Joint Arrangements
Standards
(effective 1 January 2013)
In August 2011, the AASB issued a suite of five new and amended
standards which address the accounting for joint arrangements,
consolidated financial statements and associated disclosures.
AASB 10 replaces all of the guidance on control and consolidation
in AASB 127
Consolidated and Separate Financial Statements,
and Interpretation 112
Consolidation – Special Purpose Entities
.
The core principle that a consolidated entity presents a parent
and its subsidiaries as if they are a single economic entity remains
unchanged, as do the mechanics of consolidation. However, the
standard introduces a single definition of control that applies to all
entities. It focuses on the need to have both power and rights or
exposure to variable returns. Power is the current ability to direct
the activities that significantly influence returns. Returns must
vary and can be positive, negative or both. Control exists when
the investor can use its power to affect the amount of its returns.
There is also new guidance on participating and protective rights
and on agent/principal relationships. There is also new guidance
on participating and protective rights and on agent/principal
relationships.
While the Group does not expect the new standard to have a
significant impact on its composition, it has yet to perform a detailed
analysis of the new guidance in the context of its various investees
that may or may not be controlled under the new rules.
AASB 11 introduces a principles based approach to accounting for
joint arrangements. The focus is no longer on the legal structure
of joint arrangements, but rather on how rights and obligations
are shared by the parties to the joint arrangement. Based on the
assessment of rights and obligations, a joint arrangement will
be classified as either a joint operation or a joint venture. Joint
ventures are accounted for using the equity method, and the
choice to proportionately consolidate will no longer be permitted.
Parties to a joint operation will account their share of revenues,
expenses, assets and liabilities in much the same way as under the
previous standard. AASB 11 also provides guidance for parties that
participate in joint arrangements but do not share joint control.
The Group does not currently hold any joint arrangements. The new
outdoor joint venture will be classified as a joint venture under the
new rules and be accounted for under the equity method
AASB 12 sets out the required disclosures for entities reporting under
the two new standards, AASB 10 and AASB 11, and replaces the
disclosure requirements currently found in AASB 127 and AASB 128.
Application of this standard by the Group will not affect any of the
amounts recognised in the financial statements, but will impact the
type of information disclosed in relation to the Group’s investments.
Amendments to AASB 128 provide clarification that an entity
continues to apply the equity method and does not remeasure
its retained interest as part of ownership changes where a joint
venture becomes an associate, and vice versa. The amendments
also introduce a “partial disposal” concept. The Group is still
assessing the impact of these amendments.
The Group does not expect to adopt the new standards before their
operative date. They would therefore be first applied in the financial
statements for the annual reporting period ending 31 December 2013.
(ii) AASB 13
Fair Value Measurement
and
AASB 2011-8
Amendments to Australian Accounting
Standards arising from AASB 13
(effective 1 January 2013)
AASB 13 was released in September 2011. It explains how to measure
fair value and aims to enhance fair value disclosures. The Group has
yet to determine which, if any, of its current measurement techniques
will have to change as a result of the new guidance. It is therefore
not possible to state the impact, if any, of the new rules on any of the
amounts recognised in the financial statements. However, application
of the new standard will impact the type of information disclosed
in the notes to the financial statements. The Group does not intend
to adopt the new standard before its operative date, which means
that it would be first applied in the annual reporting period ending
31 December 2013.
(iii) Revised AASB 119
Employee Benefits
, AASB 2011-10
Amendments to Australian Accounting Standards arising from
AASB 119
(September 2011) and AASB 2011-11
Amendments to
AASB 119
(September 2011)
arising from Reduced Disclosure
Requirements
(effective 1 January 2013)
In September 2011, the AASB released a revised standard on
accounting for employee benefits. It requires the recognition of all
remeasurements of defined benefit liabilities/assets immediately
in other comprehensive income (removal of the so-called ‘corridor’
method) and the calculation of a net interest expense or income by
applying the discount rate to the net defined benefit liability or asset.
This replaces the expected return on plan assets that is currently
included in profit or loss. The standard also introduces a number
of additional disclosures for defined benefit liabilities/assets and
could affect the timing of the recognition of termination benefits.
The amendments will have to be implemented retrospectively. The
impact of the new rules on the Group is not expected to be material.
The Group has not yet decided when to adopt the new standard.
There are no other standards that are not yet effective and that are
expected to have a material impact on the entity in the current or
future reporting periods and on foreseeable future transactions.