Telstra 2011 Annual Report Download - page 121

Telstra Corporation Limited and controlled entities
106
Notes to the Financial Statements (continued)
2.24 Recently issued accounting standards to be applied in
future reporting periods (continued)
(d) Joint Arrangements
IFRS 11: “Joint Arrangements” was also issued by the IASB in May
2011 and provides for a more realistic reflection of joint
arrangements by focussing on the rights and obligations of the
arrangement, rather than its legal form. The standard addresses
inconsistencies in the reporting of joint arrangements by requiring
a single method to account for interests in jointly controlled
entities. This standard is applicable from 1 July 2013, with early
adoption permitted. Management is assessing the impact on
Telstra.
(e) Disclosure of Interests in Other Entities
IFRS 12: “Disclosure of Interests in other Entities” was issued by
the IASB in May 2011 and is a new and comprehensive standard on
disclosure requirements for all forms of interests in other entities,
including subsidiaries, joint arrangements, associates, special
purpose vehicles and other off balance sheet vehicles. This
standard is applicable from 1 July 2013 and management is
currently assessing the impacts of the standard, which will be
limited to disclosure impacts only.
There have also been consequential amendments to IAS 28:
“Investment in Associates” as a result of the above new standard.
These amendments are applicable from 1 July 2013 and will have
no impact on Telstra as we already comply with the amendments.
(f) Fair Value Measurement
IFRS 13: “Fair Value Measurement” was issued by the IASB in May
2011 and provides a precise definition of a fair value, is a single
source of fair value measurement and prescribes disclosure
requirements for use across IFRSs. The requirements do not
extend the use of fair value accounting, but provide guidance on
how it should be applied where its use is already required or
permitted by other standards within IFRS. The standard will apply
to Telstra from 1 July 2013, although early adoption is permitted.
We are currently assessing the impacts of this standard on Telstra.
(g) Presentation of Items of Other Comprehensive Income (OCI)
IAS 1: “Presentation of Financial Statements” was amended by the
IASB in June 2011 and provides improvements to the presentation
of items of OCI. The main change is the requirement to group
items within OCI that will be reclassified to the profit or loss in
subsequent periods separately, from items of OCI that will not. The
amendments also reaffirm existing requirements that items of OCI
and profit or loss can be presented as either a single statement or
two consecutive statements. The revised IAS 1 will apply to Telstra
from 1 July 2012 however, early adoption is permitted. These
amendments will have no financial impact on Telstra as these
changes impact disclosure requirements only.
(h) Employee Benefits
IAS 19: “Employee Benefits” was issued by the IASB in June 2011
to replace the existing employee benefits standard. The key
changes are as follows:
• Actuarial gains and losses have been renamed to
‘remeasurements’ and will be recognised immediately in OCI.
Actuarial gains or losses will no longer be deferred using the
corridor approach or recognised in profit or loss;
• Measurement of defined benefit expense will include net interest
income or expense, calculated by applying a discount rate to the
net defined benefit asset or liability. The discount rate used is
based on either a corporate or government bond rate. This will
remove the requirement to include an expected return on plan
assets as part of the measurement of the defined benefit
expense;
• Presentation of defined benefit cost has been disaggregated into
three components; service cost to be presented in profit or loss,
net interest on the net defined benefit asset or liability in the
profit or loss as part of finance costs and remeasurements to be
presented in OCI; and
• Additional disclosures are required about the characteristics of
benefit plans, the amounts recognised in the financial
statements and the risks arising from defined benefit plans.
The revised IAS 19 will apply to Telstra from 1 July 2013, although
early adoption is permitted. We are currently assessing the
impacts of this standard.
(i) Other
In addition to the above recently issued accounting standards that
are applicable in future years, we note the following new
accounting standards that are applicable in future years:
• AASB 124: “Related Party Disclosures”;
• AASB 2009-12: “Amendments to Australian Accounting
Standards”;
• AASB 2009-14: “Amendments to Australian Interpretation -
Prepayments of a Minimum Funding Requirement”;
• AASB 2010-4: “Further Amendments to Australian Accounting
Standards arising from the Annual Improvements Project”;
• AASB 2010-5: “Amendments to Australian Accounting
Standards”;
• AASB 2010-8: “Amendments to Australian Accounting
Standards - Deferred Tax: Recovery of Underlying Assets”;
• AASB 2010-9: “Amendments to Australian Accounting
Standards - Severe Hyperinflation and Removal of Fixed Dates
for First-time Adopters”; and
• AASB 2011-4 “Amendments to Australian Accounting Standards
to Remove Individual Key Management Personnel Disclosure
Requirements”.
We do not expect these accounting standards to materially impact
our financial results upon adoption.
2. Summary of significant accounting policies, estimates, assumptions and
judgements (continued)