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AASB 16 also requires enhanced disclosures
to be provided by lessors that will improve
information disclosed about a lessor’s risk
exposure, particularly to residual value risk.
The Group does not currently intend to
early adopt.
The Group is yet to undertake a detailed
assessment of the impact of AASB
16. However, based on the preliminary
assessment, there are some likely impacts
when it is first adopted for the year ending
30 June 2020 including:
•
•
Significant increase on the administration
requirements of leases,
•
•
Increase in the number of lease assets
and financial liabilities recognised on
the balance sheet, although the quantum
is likely to be small in relation to the size
of the balance sheet,
•
•
Operating cash outflows will be lower
and financing cash flows will be higher
in the statement of cash flows as principal
repayments and interest on all lease
liabilities will now be included in financing
activities, although the quantum is likely
to be small in relation to the total operating
and financing cash flows.
The Group has identified that the collection
and administration of the data will be
systematically required to determine
the implications of the changes and
implementation of the standard. Disclosure
requirements have not been fully reviewed
however they are expected to increase
significantly.
(iv) AASB 2016-1 Amendments to
Australian Accounting Standards –
Recognition of Deferred Tax Assets
for Unrealised Losses
This Standard amends AASB 112 Income Taxes
to clarify the requirements on recognition of
deferred tax assets for unrealised losses on
debt instruments measured at fair value.
The Group is yet to undertake a detailed
assessment of the impact of AASB112.
However, 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 2018.
(v) AASB 2016-2 - Amendments to
Australian Accounting Standards –
Disclosure Initiative: Amendments
to AASB 107
This Standard amends AASB 107 Statement
of Cash Flows (August 2015) to require
entities preparing financial statements in
accordance with Tier 1 reporting requirements
to provide disclosures that enable users of
financial statements to evaluate changes
in liabilities arising from financing activities,
including both changes arising from cash
flows and non-cash changes.
The amendments are effective for annual
periods beginning on or after 1 January 2017,
with early adoption permitted. When adopting
this new standard in financial year ended 30
June 2018 there will be no material impact
on the financial statements.
There are no other standards that have
been issued or amended but are not yet
effective that are expected to have a material
impact on the Group in the current or future
reporting periods and on foreseeable future
transactions.
(c) Infrastructure maintenance
Infrastructure maintenance of infrastructure
assets is classified as major periodic
maintenance if it is part of a systematic
planned program of works, occurs on a
cyclical basis and is significant in monetary
value. Major periodic maintenance may
include significant corrective works,
component replacement programs,
and similar activities and these costs
are expensed.
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NOTE 20
OTHER ACCOUNTING POLICIES (CONTINUED)