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Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial Assets

Post-implementation Review – AASB

In October 2010, the Australian Accounting Standards Board (AASB) introduced AASB 2010-6 to help users of financial statements evaluate the risk exposures relating to transferred financial assets and the effect of those risks on an entity’s financial position; and to promote transparency in the reporting of transfer transactions, particularly those that involve securitisation of financial assets. A Regulation Impact Statement was required at the time the decision to introduce AASB 2010-6 was made, but was not prepared. Consequently a post-implementation review (PIR) was required. A PIR was completed by the AASB and was assessed as compliant by the Office of Best Practice Regulation (OBPR). The PIR found the amendments have helped to ensure that disclosures about financial asset transfers are more informative and comparable across entities and, therefore, more useful to users of financial statements of different entities. The PIR also found the changes increased regulatory burden by $43,000 per annum. The change in regulatory burden was agreed with the OBPR.