Telstra 2007 Annual Report Download - page 136

Telstra Corporation Limited and controlled entities
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Notes to the Financial Statements (continued)
2.24 Recently issued accounting standards to be
applied in future reporting periods (continued)
Segment reporting
AASB 8: “ Operating Segments” is applicable to annual reporting
periods beginning on or after 1 January 2009 and replaces AASB 114:
“ Segment Reporting” . A related omnibus standard AASB 2007-3
"Amendments to Australian Accounting Standards arising from AASB
8" makes a number of amendments to other accounting standards as
a result of AASB 8 and must be adopted at the same time.
AASB 8 requires entities to determine operating segments based on
their internal management reporting structure for the reporting of
their financial performance. The adoption of AASB 8 and AASB 2007-3
are not expected to have an impact on our financial results or balance
sheet as they are only concerned with disclosure.
Presentation of financial statements
AASB 101: “ Present at ion of Financial Statements” was revised in
October 2006, with the revised standard becoming applicable for
reporting periods beginning on or after 1 January 2007. The
amendments to AASB 101 bring the requirements of the standard in
line with those required by International Accounting Standard IAS 1:
“ Presentation of Financial Statement s” .
The adoption of the revised AASB 101 is not expected to have an
impact on our financial results as it is only concerned with disclosure.
Reinstatement of options in Australian Accounting Standards
AASB 2007-4: “ Amendments to Australian Accounting St andards
Arising from ED 151 and Other Amendments” is applicable to reporting
periods beginning on of after 1 July 2007. This standard amends a
number of existing Australian Accounting Standards by re-
introducing accounting treatment options that are included in
International Financial Reporting Standards (IFRSs) that were
originally removed by the Australian Accounting St andards Board.
The standard also removes a number of disclosure requirements that
were originally included in Australian Accounting Standards and not
required by IFRSs.
The account ing options which are being re-introduced include:
• permitting an entity to adopt the indirect method of presenting it s
cash flow statement;
• permitting an entity t o apply proportionate consolidation to
interests in joint venture entities; and
• permitting an entity to record non-monetary grants at nominal
amounts and to present assets and expenses net of related grants.
Telstra is not expecting to apply any of these options.
Service concession arrangements
AASB Interpretation 12: “ Service Concession Arrangements” is
applicable to annual reporting periods beginning on or after 1
January 2008. The interpretation provides guidance on the
accounting by operators for public-to private service concession
arrangements.
The release of this interpretation resulted in an amendment to UIG 4,
which scoped out service concessions arrangements from applying
UIG 4. This led to UIG 4 being reissued as AASB Interpretation 4:
“ Determining Whether an Arrangement Contains a Lease” .
The adoption of AASB Interpretation 12 is not expected to impact on
our financial results. The requirements in AASB Interpretation 4 will
not result in any changes to the accounting of UIG 4 as described in
note 2.1.
Other standards
The Internat ional Financial Reporting Standards Committee (IFRIC)
issued IFRIC 13 “ Customer Loyalty Programs” in June 2007. IFRIC 13
prescribes the accounting for customer loyalty programmes, which
are used by companies to provide incentives to their customers to buy
their products or use their services. IFRIC 13 is applicable for annual
reporting periods beginning on or after 1 July 2008. Management has
not yet assessed the impact of this int erpretation.
IFRIC issued IFRIC 14 “ IAS 19 - The Limit on a Defined Asset, Minimum
Funding Requirements and their Interaction” in July 2007. IFRIC 14
aims to clarify how t o determine in normal circumstances the limit on
the asset that an employer’s balance sheet may contain in respect of
its defined benefit pension plan. IFRIC 14 is applicable for annual
reporting periods beginning on or aft er 1 January 2008. Management
has not yet assessed the impact of this interpretat ion.
2.Summary of accounting policies (continued)