for the year ended 30 June 2024 24 AASB 2023-2 Amendments to Australian Accounting Standards – International Tax Reform –Pillar Two Model Rules– Effective 23 May 2023 AASB 2023-2 amends AASB 112 Income Taxes to introduce: • a mandatory temporary exception to accounting for deferred taxes arising from the implementation of the Pillar Two model rules published by the Organisation for Economic Co-operation and Development (OECD); and • targeted disclosure requirements to help financial statement users better understand an entity’s exposure to income taxes arising from the reform, particularly in periods before legislation implementing the rules is in effect. The amendments did not have a material impact to the Group. NEW ACCOUNTING STANDARDS ISSUED NOT YET EFFECTIVE The Group has chosen not to early adopt the following standards and interpretations, which have been published and are mandatory for the Group’s accounting periods beginning on or after 1 July 2023. All other standards and interpretations that are not disclosed have been assessed and are not applicable to the Group. AASB 2022-5 Amendments to Australian Accounting standards – Lease Liability in a Sale and Leaseback- Effective 1 January 2024. The amendments confirm the following: • On initial recognition, the seller-lessee includes variable lease payments when it measures a lease liability arising from a sale-and-leaseback transaction. • After initial recognition, the seller-lessee applies the general requirements for subsequent accounting of the lease liability such that it recognises no gain or loss relating to the right of use it retains. A seller-lessee may adopt different approaches that satisfy the new requirements on subsequent measurement. The Group has assessed that the following amendment to the standards do not have an impact on the Group currently, it will be reconsidered in future as and when it does become applicable. AASB 2020-1 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-current AASB 2020-6 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-current – Deferral of Effective Date AASB 2022-6 Amendments to Australian Accounting Standards – Non-current Liabilities with Covenants – Effective 1 January 2024. Non-current liabilities with covenants After reconsidering certain aspects of the 2020 amendments, the IASB reconfirmed that only covenants with which a company must comply on or before the reporting date affect the classification of a liability as current or non-current. Covenants with which the company must comply after the reporting date (i.e., future covenants) do not affect a liability’s classification at that date. However, when non-current liabilities are subject to future covenants, companies will now need to disclose information to help users understand the risk that those liabilities could become repayable within 12 months after the reporting date. The amendments also clarify how a company classifies a liability that can be settled in its own shares – e.g., convertible debt. When a liability includes a counterparty conversion option that involves a transfer of the company’s own equity instruments, the conversion option is recognised as either equity or a liability separately from the host liability under IAS 32 Financial Instruments: Presentation. The IASB has now clarified that when a company classifies the host liability as current or noncurrent, it can ignore only those conversion options that are recognised as equity. The group has taken note of the updated definition and will consider and apply going forward. At 30 June 2024, the Group no longer has any long-term debt with covenants or any liability with a conversion to equity option. Classification of liabilities as current or non-current To promote consistency in application and clarify the requirements on determining if a liability is current or non-current, the IASB has amended IAS 1. Under existing IAS 1 requirements, companies classify a liability as current when they do not have an unconditional right to defer settlement of the liability for at least twelve months after the end of the reporting period. As part of its amendments, the IASB has removed the requirement for a right to be unconditional and instead, now requires that a right to defer settlement must have substance and exist at the end of the reporting period. The Group is still in the process of determining the impact of the amendments to the accounting standard. AASB 2023-1 Amendments to Australian Accounting Standards – Supplier Finance Arrangements– Effective 1 January 2024. The amendments introduce two new disclosure objectives – one in AASB 107 and another in AASB 7 – for a company to provide information about its supplier finance arrangements that would enable users (investors) to assess the effects of these arrangements on the company’s liabilities and cash flows, and the company’s exposure to liquidity risk. The Group has assessed that the following amendment to the standards do not have an impact on the Group currently, it will be reconsidered in future as and when it does become applicable. AASB 2023-5 Amendments to Australian Accounting Standards – Lack of Exchangeability– Effective 1 January 2025 Under AASB 121 The Effects of Changes in Foreign Exchange Rates, a company uses a spot exchange rate when translating a foreign currency transaction. However, in rare cases, it is possible that one currency cannot be exchanged into another. This lack of exchangeability might arise when a government imposes controls on capital imports and exports, for example, or when it provides an official exchange rate but limits the volume of foreign currency transactions that can be undertaken at that rate. Consequently, market participants are unable to buy and sell currency to meet their needs at the official exchange rate and turn instead to unofficial, parallel markets. In October 2023, the Australia Accounting Standards Board (AASB) amended AASB 121 to clarify: Notes to the annual financial statements (continued)
RkJQdWJsaXNoZXIy Mjk0NTM=