Westgold Resources Limited Annual Report 2020

105 Westgold Resources Limited Annual Report 2020 40. ACCOUNTING STANDARDS (CONTINUED) New and amended Accounting Standards and Interpretations issued but not yet effective AASB 2019-1 Conceptual Framework for Financial Reporting AASB 2019-1 is effective for annual periods being on or after 1 January 2020. The revised Conceptual Framework includes some new concepts, provides updated definitions and recognition criteria for assets and liabilities and clarifies some important concepts. It is arranged in eight chapters, as follows: – Chapter 1 – The objective of financial reporting – Chapter 2 – Qualitative characteristics of useful financial information – Chapter 3 – Financial statements and the reporting entity – Chapter 4 – The elements of financial statements – Chapter 5 – Recognition and derecognition – Chapter 6 – Measurement – Chapter 7 – Presentation and disclosure – Chapter 8 – Concepts of capital and capital maintenance New and amended Accounting Standards and Interpretations issued but not yet effective AASB 2019-1 Conceptual Framework for Financial Reporting (continued) AASB 2019-1 has also been issued, which sets out the amendments to Australian Accounting Standards, Interpretations and other pronouncements in order to update references to the revised Conceptual Framework. The changes to the Conceptual Framework may affect the application of accounting standards in situations where no standard applies to a particular transaction or event. In addition, relief has been provided in applying AASB 3 and developing accounting policies for regulatory account balances using AASB 108, such that entities must continue to apply the definitions of an asset and a liability (and supporting concepts) in the Framework for the Preparation and Presentation of Financial Statements (July 2004), and not the definitions in the revised Conceptual Framework. The Group is in the process of assessing the impact of the new Conceptual Framework. AASB 2018-6 Definition of a Business AASB 2018-6 is effective for annual periods being on or after 1 January 2020. The Standard amends the definition of a business in AASB 3 Business Combinations. The amendments clarify the minimum requirements for a business, remove the assessment of whether market participants are capable of replacing missing elements, add guidance to help entities assess whether an acquired process is substantive, narrow the definitions of a business and of outputs, and introduce an optional fair value concentration test. The Group is in the process of assessing the impact of the new amendment. AASB 2018-7 Definition of Material AASB 2018-7 is effective for annual periods being on or after 1 January 2020. This Standard amends AASB 101 Presentation of Financial Statements and AAS 108 Accounting Policies, Changes in Accounting Estimates and Errors to align the definition of ‘material’ across the standards and to clarify certain aspects of the definition. The amendments clarify that materiality will depend on the nature or magnitude of information. An entity will need to assess whether the information, either individually or in combination with other information, is material in the context of the financial statements. A misstatement of information is material if it could reasonably be expected to influence decisions made by the primary users. The Group is in the process of assessing the impact of the new amendment. AASB 2019-5 Disclosure if the Effect of New IFRS Standards Not Yet Issued in Australia AASB 2019-5 is effective for annual periods being on or after 1 January 2020. This standard amends AASB 1054 by adding a disclosure requirement for an entity intend to comply with IFRS Standards to disclose the information specified in paragraphs 30 and 31 of AASB 108 on the potential effect of an IFRS Standard that has not yet been issued by the AASB so that such entity complying with Australian Accounting Standards can asset compliance with IFRS standards. The Group is in the process of assessing the impact of the new amendment.