Page 50 - Bauxite Resources Annual Report 2013

Notes to the Financial Statements cont.
AASB 10 replaces parts of AASB 127: Consolidated and Separate Financial Statements (March 2008, as amended) and
Interpretation 112: Consolidation – Special Purpose Entities. AASB 10 provides a revised definition of “control” and additional
application guidance so that a single control model will apply to all investees. This Standard is not expected to significantly
impact the Group’s financial statements.
AASB 11 replaces AASB 131: Interests in Joint Ventures (July 2004, as amended). AASB 11 requires joint arrangements to be
classified as either “joint operations” (where the parties that have joint control of the arrangement have rights to the assets and
obligations for the liabilities) or “joint ventures” (where the parties that have joint control of the arrangement have rights to the net
assets of the arrangement). The Group’s existing accounting treatment of BRJV and ARJV (both classified as “joint operations”) is
consistent with the provisions of AASB11.
The Group’s interest in BAJV Pty Ltd (see Note 17(c)), which is currently referred to as a “joint venture entity”, will be referred
to as a “joint venture” under AASB 11. Joint ventures are required to be accounted for using the equity method of accounting
under AASB 11. The proportionate consolidation method is no longer permitted. However, this will not have any impact
on the Group’s financial statements as the Group’s interest BAJV Pty Ltd is currently immaterial to the Group’s financial
performance and position.
AASB 12 contains the disclosure requirements applicable to entities that hold an interest in a subsidiary, joint venture, joint operation
or associate. AASB 12 also introduces the concept of a “structured entity”, replacing the “special purpose entity” concept currently
used in Interpretation 112, and requires specific disclosures in respect of any investments in unconsolidated structured entities. This
Standard will affect disclosures only and is not expected to significantly impact the Group’s financial statements.
To facilitate the application of AASBs 10, 11 and 12, revised versions of AASB 127 and AASB 128 have also been issued. The
revisions made to AASB 127 and AASB 128 are not expected to significantly impact the Group’s financial statements.
AASB 13: Fair Value Measurement and AASB 2011–8: Amendments to Australian Accounting Standards arising from AASB 13
(applicable for annual reporting periods commencing on or after 1 January 2013).
AASB 13 defines fair value, sets out in a single Standard a framework for measuring fair value, and requires disclosures about fair
value measurement.
AASB 13 requires:
• inputs to all fair value measurements to be categorised in accordance with a fair value hierarchy; and
• enhanced disclosures regarding all assets and liabilities (including, but not limited to, financial assets and financial liabilities)
to be measured at fair value.
These Standards are expected to result in more detailed fair value disclosures, but are not expected to significantly impact the
amounts recognised in the Group’s financial statements.
AASB 2011–4: Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure
Requirements (applicable for annual reporting periods beginning on or after 1 July 2013).
This Standard makes amendments to AASB 124: Related Party Disclosures to remove the individual key management personnel
disclosure requirements (including paras Aus29.1 to Aus29.9.3). These amendments serve a number of purposes, including
furthering trans-Tasman convergence, removing differences from IFRSs, and avoiding any potential confusion with the equivalent
Corporations Act 2001 disclosure requirements.
This Standard is not expected to significantly impact the Group’s financial report as a whole because:
• some of the disclosures removed from AASB 124 will continue to be required under s 300A of the Corporations Act, which
is applicable to the Group; and
• AASB 2011–4 does not affect the related party disclosure requirements in AASB 124 applicable to all reporting entities, and
some of these requirements require similar disclosures to those removed by AASB 2011–4.
AASB 119: Employee Benefits (September 2011) and AASB 2011–10: Amendments to Australian Accounting Standards arising
from AASB 119 (September 2011) (applicable for annual reporting periods commencing on or after 1 January 2013).
48 Bauxite Resources Annual Report 2013