58 NEW ACCOUNTING STANDARDS ISSUED NOT YET EFFECTIVE The Group has chosen not to early adopt the following standards and interpretations, which have been published and are mandatory for the Group’s accounting periods beginning on or after 1 July 2023. All other standards and interpretations that are not disclosed have been assessed and are not applicable to the Group. AASB 101 Classification of liabilities as current or non-current (amendments) - Effective 1 January 2023 To promote consistency in application and clarify the requirements on determining if a liability is current or non-current, the IASB has amended AASB 1. Under existing AASB 101 requirements, companies classify a liability as current when they do not have an unconditional right to defer settlement of the liability for at least twelve months after the end of the reporting period. As part of its amendments, the IASB has removed the requirement for a right to be unconditional and instead, now requires that a right to defer settlement must have substance and exist at the end of the reporting period. The Group is still in the process of determining the impact of the amendments to the accounting standard. AASB 2021-5 Amendments to Australian Accounting Standards – Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Effective 1 January 2023 The amendments narrow the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences arising on initial recognition of a lease and a decommissioning provision. The Group is still in the process of determining the impact of the amendments to the accounting standard. AASB 17 Insurance Contracts – Effective date 1 January 2023 (new standard) In May 2017, the IASB issued AASB 17 Insurance Contracts (AASB 17), a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. Once effective, AASB 17 will replace AASB 4 Insurance Contracts (AASB 4) that was issued in 2005. AASB 17 applies to all types of insurance contracts (i.e., life, non-life, direct insurance and re-insurance), regardless of the type of entities that issue them, as well as to certain guarantees and financial instruments with discretionary participation features. A few scope exceptions will apply. The overall objective of AASB 17 is to provide an accounting model for insurance contracts that is more useful and consistent for insurers. In contrast to the requirements in AASB 4, which are largely based on grandfathering previous local accounting policies, AASB 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects. The core of AASB 17 is the general model, supplemented by: • A specific adaptation for contracts with direct participation features (the variable fee approach) • A simplified approach (the premium allocation approach) mainly for short-duration contracts Management has performed a high-level assessment of the impact of the standard on its consolidated financial statements. The new IFRS 17 standard is not expected to have a significant impact on the Group’s consolidated financial statements. Management continues to assess potential changes. AASB 17 Insurance contracts (amendments)- Effective 1 January 2023) A number of amendments were made to the following aspects of AASB 17: • Scope of AASB 17 • Measuring the contractual service margin(CSM) • Transition to AASB 17 • Accounting for direct participating contracts • Accounting for reinsurance contracts held • Presentation and disclosure requirements Management has performed a high-level assessment of the impact of the amendments on its consolidated financial statements. The amendments are not expected to have a significant impact on the Group’s consolidated financial statements. Management continues to assess potential changes. AASB 17 and AASB 9 – Comparative information(amendment) - Effective 1 January 2023 The Board has decided to remove the restriction proposed that would have allowed the classification overlay to be applied only to a financial asset held for an activity connected with contracts in the scope of AASB 17. Instead, the classification overlay would apply to all financial assets regardless of whether they are, or were, held in respect of insurance activities. This means that an insurer can choose to apply this approach to all financial assets on an instrument-by-instrument basis. Insurers that have already adopted IFRS 9 are eligible for the new transition option. The Board has also decided to expand eligibility for the classification overlay approach to those insurers that have adopted AASB 9 before adopting AASB 17. This would allow them to reduce any accounting mismatches relating to financial assets that are derecognised in the comparative period. AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting Estimates – Effective 1 January 2023 In October 2018, the IASB issued amendments to AASB 101 Presentation of Financial Statements and AASB 8 Accounting Policies, Changes in Accounting Estimates and Errors to align the definition of ‘material’ across the standards and to clarify certain aspects of the definition. The new definition states that, ’Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general-purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting Group’. The Board has issued amendments to AASB 101 Presentation of Financial Statements and an update to IFRS Practice Statement 2 Making Materiality Judgements to help companies provide useful accounting policy disclosures. Notes to the annual financial statements (continued) for the year ended 30 June 2023
RkJQdWJsaXNoZXIy Mjk0NTM=