Telstra 2015 Annual Report Download - page 94

Notes to the Financial Statements (continued)
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ESTIMATES, ASSUMPTIONS AND
JUDGEMENTS (continued)
92 Telstra Corporation Limited and controlled entities
2.25 New accounting standards to be applied in future
reporting periods
The accounting standards that have not been early adopted for the
year ended 30 June 2015 but will be applicable to the Telstra
Group in future reporting periods are detailed below.
Apart from these standards, we have considered other accounting
standards that will be applicable in future periods but are
considered insignificant to Telstra.
(a) Financial Instruments
In December 2014, AASB issued the final version of AASB 9:
“Financial Instruments” (AASB 9 (2014)), AASB 2014-7:
“Amendments to Australian Accounting Standards arising from
AASB 9 (December 2014)” and AASB 2014-8: “Amendments to
Australian Accounting Standards arising from AASB 9 (December
2014) - Application of AASB 9 (December 2009) and AASB 9
(December 2010)”.
AASB 9 (2014) is the final version of a new principal standard that
consolidates requirements on the classification and
measurement of financial assets and liabilities; hedge accounting
and an expected credit losses model for impairment of financial
assets that replaces the incurred loss impairment model used
today. It supersedes AASB 9 issued in December 2009 (as
amended) and AASB 9 issued in December 2010.
AASB 9 (2014) and AASB 2014-7 apply to Telstra from 1 July 2018,
with early adoption permitted.
AASB 2014-8 limits the application of the existing versions of
AASB 9 (AASB 9 (December 2009) and AASB 9 (December 2010))
from 1 February 2015. We have early adopted the previous version
of the standard, AASB 9 (2013), from 1 July 2014. This version
excludes the impairment section.
We are currently assessing the impact of the new impairment
model on our financial results.
(b) Revenue from Contracts with Customers
In December 2014, the AASB issued AASB 15: “Revenue from
Contracts with Customers” and AASB 2014-5: “Amendments to
Australian Accounting Standards arising from AASB 15”.
AASB 15 establishes principles for reporting the nature, amount,
timing and uncertainty of revenue and cash flows arising from an
entity’s contracts with customers. AASB 15 and AASB 2014-5
apply to Telstra from 1 July 2017, with early application permitted.
The International Accounting Standards Board (IASB) has
confirmed a one-year deferral of the effective date of IFRS 15. As
a result, we anticipate that AASB will follow and AASB 15 will only
apply to Telstra from 1 July 2018. We are currently assessing the
impact of AASB 15 on our financial results.
(c) 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 2014-3: “Amendments to Australian Accounting
Standards – Accounting for Acquisitions of Interests in Joint
Operations [AASB 1 & AASB 11]”
• AASB 2014-4: “Amendments to Australian Accounting
Standards – Clarification of Acceptable Methods of
Depreciation and Amortisation [AASB 116 & AASB 138]”
• AASB 2014-9: “Amendments to Australian Accounting
Standards - Equity Method in Separate Financial Statements
[AASB 127]”
• AASB 2014-10: “Amendments to Australian Accounting
Standards - Sale or Contribution of Assets between an Investor
and its Associate or Joint Venture [AASB 10 & AASB 128]”
• AASB 2015-1: “Amendments to Australian Accounting
Standards - Annual Improvements to Australian Accounting
Standards 2012-2014 Cycle”
• AASB 2015-2: “Amendments to Australian Accounting
Standards - Disclosure Initiative: Amendments to AASB 101”
• AASB 2015-3: “Amendments to Australian Accounting
Standards arising from the Withdrawal of AASB 1031
Materiality”.
We do not expect these accounting standards will have any
material impact on our financial results upon adoption.