Section 34 – Disclosure Checklist

Section 34 – Specialised Activities

Ref

Agriculture

1.      

An entity shall disclose the following for each class of biological asset measured using the fair value model:

a)    A description of each class of biological asset.

b)    The methods and significant assumptions applied in determining the fair value of each class of biological asset.

c)    A reconciliation of changes in the carrying amount of each class of biological asset between the beginning and the end of the current period. The reconciliation shall include:

                      i.        the gain or loss arising from changes in fair value less costs to sell;

                     ii.        increases resulting from purchases;

                    iii.        decreases attributable to sales;

                    iv.        decreases resulting from harvest;

                     v.        increases resulting from business combinations; and

                    vi.        other changes.

This reconciliation need not be provided for the prior periods.

34.7

2.      

If an entity measures any individual biological assets at cost in accordance with paragraph 34.6A, it shall explain why fair value cannot be reliably measured. If the fair value of such a biological asset becomes reliably measurable during the current period an entity shall explain why fair value has become reliably measurable and the effect of the change.

34.7A

3.      

An entity shall disclose the methods and significant assumptions applied in determining the fair value at the point of harvest of each class of agricultural produce.

34.7B

4.      

An entity shall disclose the following for each class of biological asset measured using the cost model:

a)    a description of each class of biological asset;

b)    [not used]

c)    the depreciation method used;

d)    the useful lives or the depreciation rates used; and

e)    a reconciliation of changes in the carrying amount of each class of biological asset between the beginning and the end of the current period. The reconciliation shall include:

                      i.        increases resulting from purchases;

                     ii.        decreases attributable to sales;

                    iii.        decreases resulting from harvest;

                    iv.        increases resulting from business combinations;

                     v.        impairment losses recognised or reversed in profit or loss in accordance                      with Section 27 Impairment of Assets; and

                    vi.        other changes.

34.10

5.      

An entity shall disclose, for any agricultural produce measured at fair value less costs to sell, the methods and significant assumptions applied in determining the fair value at the point of harvest of each class of agricultural produce.

34.10A

Financial Institutions

6.      

A financial institution shall disclose information that enables users of its financial statements to evaluate the significance of financial instruments for its financial position  and  performance.

34.19

7.      

A financial institution shall disclose a disaggregation of the statement of financial position line item by class of financial instrument. A class is a grouping of financial instruments that is appropriate to the nature of the information disclosed and that takes into account the characteristics of those financial instruments.

34.20

8.      

Where a financial institution uses a separate allowance account to record impairments, it shall disclose a reconciliation of changes in that account during the period for each class of financial asset.

34.21

9.      

For financial instruments held at fair value in the statement of financial position, a financial institution shall disclose for each class of financial instrument, an analysis of the level in the fair value hierarchy (as set out in paragraph 11.27) into which the fair value measurements are categorised.

34.22

10.   

A financial institution shall disclose information that enables users of its financial statements to evaluate the nature and extent of credit risk, liquidity risk and market risk arising from financial instruments to which the financial institution is exposed at the end of the reporting period.

34.23

11.   

For each type of risk arising from financial instruments, a financial institution shall disclose:

a)    the exposures to risk and how they arise;

b)    its objectives, policies and processes for managing the risk and the methods used to measure the risk; and

c)    any changes in (a) or (b) from the previous period.

34.24

12.   

A financial institution shall disclose by class of financial instrument:

a)    The amount that best represents its maximum exposure to credit risk at the end of the reporting period. This disclosure is not required for financial instruments whose carrying amount best represents the maximum exposure to credit risk.

b)    A description of collateral held as security and of other credit enhancements, and the extent to which these mitigate credit risk.

c)    The  amount  by  which  any  related  credit  derivatives  or  similar  instruments mitigate that maximum exposure to credit risk.

d)    Information about the credit quality of financial assets that are neither past due nor impaired.

34.25

13.   

A financial institution shall provide, by class of financial asset, an analysis of:

a)    the age of financial assets that are past due as at the end of the reporting period but not impaired; and

b)    the financial assets that are individually determined to be impaired as at the end of the reporting period, including the factors the financial institution considered in determining that they are impaired.

34.26

14.   

When a financial institution obtains financial or non-financial assets during the period by taking possession of collateral it holds as security or calling on other credit enhancements (eg guarantees), and such assets meet the recognition criteria in other sections, a financial institution shall disclose:

a)    the nature and carrying amount of the assets obtained; and

b)    when the assets are not readily convertible into cash, its policies for disposing of such assets or for using them in its operations.

34.27

15.   

A financial institution shall provide a maturity analysis for financial liabilities that shows the remaining contractual maturities at undiscounted amounts separated between derivative and non-derivative financial liabilities.

34.28

16.   

A financial institution shall provide a sensitivity analysis for each type of market risk (eg interest rate risk, currency risk, other price risk) it is exposed to, showing the impact on profit or loss and equity. Details of the methods and assumptions used should be provided.

34.29

17.   

A financial institution shall disclose information that enables users of its financial statements to evaluate the entity’s objectives, policies and processes for managing capital. A financial institution shall disclose the following:

a)    Qualitative information about its objectives, policies and processes for managing capital, including:

                      i.        a description of what it manages as capital;

                     ii.        when an entity is subject to externally imposed capital requirements, the                        nature of those requirements and how those requirements are incorporated into                      the management of capital; and

                    iii.        how it is meeting its objectives for managing capital.

b)    Summary quantitative data about what it manages as capital. Some entities regard some financial liabilities (eg some forms of subordinated debt) as part of capital. Other entities regard capital as excluding some components of equity (eg components arising from cash flow hedges).

c)    Any changes in (a) and (b) from the previous period.

d)    Whether  during  the  period  it  complied  with  any  externally  imposed  capital requirements to which it is subject.

e)    When  the  entity  has  not  complied  with  such  externally  imposed  capital requirements, the consequences of such non-compliance.

34.31

Heritage assets

18.   

An entity shall disclose the following for all heritage assets it holds:

(a) An indication of the nature and scale of heritage assets held by the entity.

(b) The policy for the acquisition, preservation, management and disposal of heritage assets (including a description of the records maintained by the entity of its collection of heritage assets and information on the extent to which access to the assets is permitted).

(c) The accounting policies adopted for heritage assets, including details of the measurement bases used.

(d) For heritage assets that have not been recognised in the statement of financial position, the notes to the financial statements shall:

(i) explain the reasons why;

(ii) describe the significance and nature of those assets; and

(iii) disclose information that is helpful in assessing the value of those heritage assets.

(e) Where heritage assets are recognised in the statement of financial position the following disclosure is required:

(i) the carrying amount of heritage assets at the beginning of the reporting period and the reporting date, including an analysis between classes or groups of heritage assets recognised at cost and those recognised at valuation; and

(ii) where assets are recognised at valuation, sufficient information to assist in understanding the valuation being recognised (date of valuation, method used, whether carried out by external valuer and if so their qualification and any significant limitations on the valuation).

(f) A summary of transactions relating to heritage assets for the reporting period and each of the previous four reporting periods disclosing:

(i) the cost of acquisitions of heritage assets;

(ii) the value of heritage assets acquired by donations;

(iii) the carrying amount of heritage assets disposed of in the period and proceeds received; and

(iv) any impairment recognised in the period.

The summary shall show separately those transactions included in the statement of financial position and those that are not.

(g) In exceptional circumstances where it is impracticable to obtain a valuation of heritage assets acquired by donation the reason shall be stated.

Disclosures can be aggregated for groups or classes of heritage assets, provided this does not obscure significant information.

34.55

19.   

Where it is impracticable to do so, the disclosures required by paragraph 34.55(f) need not be given for any accounting period earlier than the previous comparable period, and a statement to the effect that it is impracticable shall be made.

34.56

Funding Commitments

20.   

An entity that has made a commitment shall disclose the following:

a)    the commitment made;

b)    the time-frame of that commitment;

c)    any performance-related conditions attached to that commitment; and

d)    details of how that commitment will be funded.

The above disclosures may be made in aggregate, providing that such aggregation does not obscure significant information. However, separate disclosure shall be made for recognised and unrecognised commitments.

34.62

Incoming resources from non-exchange transactions

21.   

An entity shall disclose the following:

a) the nature and amounts of resources receivable from non-exchange transactions recognised in the financial statements;

b) any unfulfilled conditions or other contingencies attaching to resources from non-exchange transactions that have not been recognised in income; and

c) an indication of other forms of resources from non-exchange transactions from which the entity has benefited.

PBE34.74

22.   

For each entity combination accounted for as a merger in the reporting period the following shall be disclosed in the newly formed entity’s financial statements:

a)    the names and descriptions of the combining entities or businesses;

b)    the date of the merger;

c)    an analysis of the principal components of the current year’s total comprehensive income to indicate:

i) the amounts relating to the newly formed merged entity for the period after the date of the merger; and

ii) the amounts relating to each party to the merger up to the date of the merger.

d)    an analysis of the previous year’s total comprehensive income between each party to the merger;

e)    the aggregate carrying value of the net assets of each party to the merger at the date of the merger; and

f)     the nature and amount of any significant adjustments required to align accounting policies and an explanation of any further adjustments made to net assets as a result of the merger

34.86