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NOTE 21
SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
(a) New and amended
standards adopted
by the Group
The Group has applied the following
standards and amendments for the first time
in their annual reporting period commencing
1 July 2015:
•
•
AASB 2015-3 Amendments to Australian
Accounting Standards arising from the
withdrawal of AASB 1031 Materiality.
This removes the guidance of materiality
from Australian Accounting Standards.
This is not expected to have an impact
on ARTC financial accounts.
•
•
ASIC has replaced Class Orders with
Legislative Instruments. Apart from the
change of reference from a Class Order
(CO 98/100 Rounding in Financial Reports
and Directors’ Reports) to a Legislative
Instrument (ASIC Corporations Rounding
in Financial/Directors’ Reports Instrument
2016/191) there is no impact of the making
of the Rounding instrument. The Rounding
instrument continues with the same effect
and conditions of the class order on which
it is based: CO 98/100.
The adoption of these standards and ASIC
Legislative Instruments did not have any
impact on the current period or any prior
period and is not likely to affect future periods.
(b) New accounting standards
and interpretations
Certain new accounting standards and
interpretations have been published that
are not mandatory for 30 June 2016 reporting
periods and have not been early adopted
by the Group. The Group’s assessment of
the impact of these new standards and
interpretations which may be relevant
to the Group are set out below.
(i) AASB 9 Financial Instruments
AASB 9 introduces new requirements for
the classification and measurement of financial
assets and liabilities and includes a forward-
looking ‘expected loss’ impairment model and
a substantially changed approach to hedge
accounting. AASB 9 is effective for annual
reporting periods beginning on or after
1 January 2018 but will require retrospective
adjustments for the 2017/18 comparative
disclosures. The Group does not currently
intend to early adopt and will continue to
monitor its position, particularly around
hedging requirements to determine
whether early adoption will provide
any financial benefits.
The Group is yet to undertake a detailed
assessment of the impact of AASB 9.
However, based on a preliminary assessment,
the standard is not expected to have
a material impact on the transactions
and balances recognised in the financial
statements when it is first adopted for
the year ending 30 June 2019.
(ii) AASB 15 Revenue from
Contracts with Customers
AASB 15 replaces AASB 118 Revenue, AASB
111 Construction Contracts and some revenue-
related Interpretations. AASB 15 establishes
a new revenue recognition model, changes
the basis for deciding whether revenue is to
be recognised over time or at a point in time,
provides new and more detailed guidance
on specific topics and expands and improves
disclosures about revenue. AASB 15 is
effective for annual reporting periods
beginning on or after 1 January 2018 but will
require retrospective adjustments for the
2017/18 comparative disclosures. The Group
does not currently intend to early adopt.
The Group is yet to undertake a detailed
assessment of the impact of AASB 15.
However, based on the preliminary review of
the five steps, the standard is not expected
to have a material impact on the transactions
and balances recognised in the financial
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