Dana Wortley (SA, Australian Labor Party) Share this | Hansard source

On behalf of the Standing Committee on Regulations and Ordinances, I give notice that, 15 sitting days after today, I shall move:

That Accounting Standard AASB 2008-10, made under section 334 of the Corporations Act 2001, be disallowed.

I seek leave to incorporate in Hansard a short summary of the matter raised by the committee.

Leave granted.

The statement read as follows—

Accounting Standard AASB 2008-10: Amendments to Australian Accounting Standards—Reclassification of Financial Standards [AASB 139 and AASB 7]

Amongst other things, this instrument adds a new paragraph 50B to Accounting Standard AASB 139. That paragraph states that a financial asset (as defined) may be reclassified out of the fair value through profit or loss category in rare circumstances. The phrase ‘in rare circumstances’ is not precise. The Minister advised that the term had been adopted following its introduction in October 2008 into the international standards. The Committee has written to the Minister seeking further advice on manner in which this term is applied.