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AASB 1048 'Interpretation and Application Standards' Summary by malj

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									  AASB 1048 ‘Interpretation and Application of
             Standards’ Summary


OVERVIEW
The Australian Accounting Standards Board (AASB) has issued an Accounting
Standard AASB 1048 „Interpretation and Application of Standards‟, applicable to
annual reporting periods beginning on or after 1 January 2005 clarifying the status of
the pronouncements of the Urgent Issues Group (UIG). This is a new Standard and
as such there is no comparison with a former Standard.

This Standard complements the set of Australian equivalents to International
Financial Reporting Standards (AEIFRS) and Interpretations originated by the
International Financial Reporting Interpretations Committee (IFRIC), (formerly the
Standing Interpretations Committee (SIC)) of the IASB.

This Standard identifies the UIG Interpretations and classifies them into two groups:
those that correspond to each IASB Interpretation and those that are promulgated by
the UIG. These groups are referred to as Table 1 and Table 2 within the Standard.

This Standard gives UIG Interpretations the same authority as other Standards.


INTRODUCTION
The AASB has issued an Accounting Standard AASB 1048 Interpretation and
Application of Standards for periods beginning on or after 1 January 2005
clarifying the status of the pronouncements of the UIG. All UIG Interpretations
(formerly UIG Abstracts) have the same authoritative status and those that are
equivalent to the IASB Interpretations and must be applied to achieve compliance
with the AEIFRSs .

This Standard complements the set of AEIFRS and Interpretations originated by
IFRIC or SIC.

In the Australian context, UIG Abstracts (now called Interpretations) do not have the
same legal status as Standards (delegated legislation) and are treated as „external
documents‟ by the Acts Interpretation Act 1901 (Cth) (and also by the Legislative
Instruments Act 2003 (Cth)). The effect of this is that any reference by a Standard to
an external document is fixed in time to when the Standard was issued. By using a
Service Standard format for this Standard, references to UIG Interpretations in all
other AASB Standards are updated by re-issuing AASB 1048 each time a new UIG
Interpretation is issued.




AASB 1048                                                                   Page 1 of 3
This Standard identifies the UIG Interpretations and classifies them into two groups:
those that correspond to each IASB Interpretation and those that are promulgated
by the UIG.       These groups are referred to as Table 1 and Table 2 within the
Standard.

In respect of the first group (Table 1), AASB 1048 makes it necessary for those UIG
Interpretations, where relevant, to be applied in order for an entity to be able to make
an explicit and unreserved statement of compliance with AEIFRSs (the IASB defines
IFRSs to include the IFRIC and SIC Interpretations).

In the second group (Table 2), this Standard lists the other UIG Interpretations that
do not correspond to the IASB Interpretations to assist financial report preparers and
users to identify the other authoritative pronouncements necessary for compliance in
the Australian context.

According to an article by the AASB titled „UIG Plans for Abstracts for 2005‟1, there is
reference to four lists of Interpretations and Abstracts as opposed to the two tables in
the Standard. List A is identical to Table 1 of the Standard. List B is titled „Retain
Abstract unless superseded by Australian Standards‟ and is discussed further below.
List C is titled „Withdraw Abstract when Australian equivalent of IASB Standard of
Interpretive operative‟ and gives a list of abstracts that will formally be withdrawn
after June 2006 after superseding pronouncements are initially applied by the
reporting entity. List D titled „Abstracts Withdrawn in 2003‟ and details Abstracts
that have already been withdrawn.

List B of the article „UIG Plans for Abstracts for 2005‟ contains numerous other
Interpretations that are to be considered by the AASB. The table from the article is
reproduced below and contains some Interpretations that may have an impact on
public sector reporting entities. The UIG Interpretations that have been included in
Table 2 (as at 10 September 2004) of AASB 1048 have been removed from this list.

List B
Abstract                            Title                                             Status
13 [1013]     The Presentation of the Financial Report of                     UIG to consider
              Entities Whose Securities are “Stapled”                         retention unless and
                                                                              until superseded by
                                                                              Australian Standards
17 [1017]     Developer and Customer Contributions in Price                              “
              Regulated Industries
19 [1019]     The Superannuation Contributions Surcharge                      Proposed
                                                                              Interpretation 1019,
                                                                              July 2004
30 [1030]     Depreciation of Long-Lived Physical Assets,                     Proposed
              including Infrastructure Assets: Condition-                     Interpretation 1030,
              Based Depreciation and Other Related Methods                    July 2004

1
 Australian Accounting Standards Board (2004) UIG Plans for Abstracts for 2005: Extracted from
http://www.aasb.com.au/workprog/docs/UIG_Plans_for_2005_08-04.pdf on 10 September 2004.


AASB 1048                                                                              Page 2 of 3
Abstract                        Title                                      Status
38 [1038]   Contributions by Owners made to Wholly-               UIG to consider
            Owned Public Sector Entities                          retention unless and
                                                                  until superseded by
                                                                  Australian Standards
40 [1040]   Non-Reciprocal Transfers within an Economic           UIG to consider
            Entity for Monetary or No Consideration               retention for Not-for-
                                                                  Profit sector only
42 [1042]   Subscriber Acquisition Costs in the                   UIG to consider
            Telecommunication Industry                            retention unless and
                                                                  until superseded by
                                                                  Australian Standards
47 [1047]   Professional Indemnity Claims Liabilities in                      “
            Medical Defence Organisations
51 [1051]   Recovery of Unfunded Superannuation of                            “
            Universities
52 [1052]   Income Tax Accounting under the Tax                               “
            Consolidation System
53 [1053]   Pre-Completion Contracts for the Sale of                          “
            Residential Development Properties
55 [1055]   Accounting for Road Earthworks                                    “

Further information on the status of the proposed UIG Interpretations can be viewed
on http://www.aasb.com.au/whatsnew/

APPLICATION DATE
This Standard is applicable to annual reporting periods beginning on or after
1 January 2005.

KEY REQUIREMENTS OF THE STANDARD
This standard has been issued to clarify the status of the pronouncements of the UIG
Interpretations. Any new or updated UIG Interpretations will result in the re-issue
of AASB 1048.




AASB 1048                                                                 Page 3 of 3

								
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