Telstra 2012 Annual Report Download - page 122

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)
(c) Joint Arrangements (continued)
Based on management’s current assessments, the revised
definition types of joint arrangements will have no impact on
Telstra's current joint arrangement classifications. The assessment
of Telstra's material jointly controlled entities shows there are no
jointly controlled entities that give Telstra direct rights over assets or
obligations to settle liabilities, such that they should be classified as
joint operations. As such, all of these jointly controlled entities
would be classified as joint ventures and given that Telstra's current
accounting policy for jointly controlled entities is to use the equity
accounting method, these joint ventures will remain equity
accounted for under AASB 11. Overall, there will be no impact on
the measurement of any of Telstra's existing joint arrangements.
(d) Disclosures of Interests in Other Entities
AASB 12: “Disclosure of Interests in Other Entities” was issued by
the AASB in August 2011 and is a new standard on disclosure
requirements for all forms of interests in investments, including
subsidiaries, associates, joint arrangements and consolidated and
unconsolidated structured entities.
This standard is applicable to Telstra from 1 July 2013 on a
retrospective basis, with early adoption permitted provided that the
entire suite of consolidation and related standards are adopted at
the same time.
Based on our current assessments, there may be additional
disclosures required by Telstra as a result of AASB 12, in the
following areas:
• controlled entities with non-controlling interests that are material
to Telstra;
• interests in consolidated structured entities; and
• unconsolidated structured entities.
(e) Separate Financial Statements
AASB 127: “Separate Financial Statements” has been released by
the AASB in August 2011 to replace the current AASB 127
standard, now only containing the accounting requirements for
preparation of separate financial statements of the parent.
This standard is applicable from 1 July 2013, with early adoption
permitted provided that the entire suite of consolidation and related
standards are adopted at the same time. There is no impact to
Telstra’s financial statements as we already comply with the
requirements in the standard.
(f) Investments in Associates and Joint Ventures
AASB 128: “Investments in Associates and Joint Ventures” was
issued by the AASB in August 2011 and replaces the current AASB
128 standard. Limited amendments have been made to AASB 128
including, the application of AASB 5: "Non-current assets held for
sale and discontinued operations" to interests in associates and
joint ventures and how to account for changes in interests in joint
ventures and associates.
This standard is applicable from 1 July 2013, with early adoption
permitted provided that the entire suite of consolidation and related
standards are adopted at the same time.
We have assessed that there will be no impact to Telstra’s financial
statements as a result of this standard.
(g) Fair Value Measurement
AASB 13: “Fair Value Measurement” was released by the AASB in
August 2011 and is a new standard providing a single source of
guidance for all fair value measurements and a precise definition of
fair value. It replaces all fair value measurement guidance in
Australian Accounting Standards and Interpretations, but does not
replace existing standards requirements on when fair values should
be used. A related omnibus standard AASB 2011-8: “Amendments
to Australian Accounting Standards arising from AASB 13” makes a
number of definition and guidance amendments to other accounting
standards as a result of the amendments in AASB 13 and must be
adopted at the same time.
This standard is applicable to Telstra from 1 July 2013, with early
adoption permitted.
Based on our assessment of this new standard, the predominant
impact will be additional disclosures required by Telstra, specifically
in the following areas:
• investments or assets held for sale, where the fair value less
costs to sell is lower than the carrying amount;
• as part of a business combination, any assets and liabilities
measured at fair value in the statement of financial position after
initial recognition; and
• financial instruments, where the carrying amount differs from the
fair value.
(h) Employee Benefits
AASB 119: “Employee Benefits” was released by the AASB in
September 2011 and replaces the existing employee benefits
standard. A related omnibus standard AASB 2011-10:
“Amendments to Australian Accounting Standards arising from
AASB 119” makes a number of amendments to other accounting
standards and an Interpretation as a result of the amendments in
AASB 119.
Both standards are applicable from 1 July 2013 on a retrospective
basis, with early adoption permitted.
2. Summary of significant accounting policies, estimates, assumptions and judgements
(continued)