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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2004
NOTE 23: DISCLOSURE OF IMPACT OF ADOPTING AASB EQUIVALENTS TO IASB STANDARDS KNOWN AS INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)
The Australian Accounting Standards Board (AASB) is adopting IFRS for application to reporting periods beginning on or after 1 January 2005. The AASB has issued AASB equivalents of IFRS, and Urgent Issues Group abstracts corresponding to International Financial Reporting Interpretations adopted by the International Accounting Standards Board (IASB). These Australian standards will be known as Australian International Financial Reporting Pronouncements (AIFRPs). The adoption of AIFRP’s will be reflected in TASCORP’s financial statements for the year ending 30 June 2006.
TASCORP has established a project team to manage the transition to AIFRPs, including training of staff, system changes and internal control changes necessary to gather the required financial information. The project team is chaired by the Senior Manager Administration and reports to the Chief Executive Officer and the Board. The project team has prepared a timetable for managing the transition to AIFRPs. To date the project team has analysed most of the AIFRPs and has identified a number of accounting policy changes that will be required. In some cases choices of accounting policies are available, including elective exemptions under AASB 1First Time Adoption of Australian International Financial Reporting Pronouncements. Some of these choices are still being analysed to determine the most appropriate accounting policy for TASCORP.
Major areas that are being reviewed relating to TASCORP’s existing policies include the following:
Financial Instruments
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Under the Australian Equivalent to IAS 32, (AASB 1032) Financial Instruments: Disclosure and Presentation, the current classification of financial instruments issued by TASCORP will not change.
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Under the Australian Equivalent of IAS 39, (AASB 1039) Financial Instruments: Recognition and Measurement there will be a major change in accounting policy to apply from 1 July 2005. From that date TASCORP will apply fair value to all financial assets and liabilities and any movement in their market value will be recognised through the Statement of Financial Performance. Currently TASCORP applies historical cost accounting to the valuation of its assets and liabilities, as it is TASCORP’s policy to hold financial assets and liabilities to maturity wherever possible. (Refer note 1 of the Financial Statements.)
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