In May 2020, the International Accounting Standards Board (IASB) issued small amendments to various standards, including annual improvements for 2018-2020. They apply to annual periods beginning on or after 1 January 2022 and are summarised briefly below:
| Standard | Brief description of amendments | Link to eLearning |
| AASB 1 First-time Adoption of Australian Accounting Standards | Permits a subsidiary that applies paragraph D16(a) of IFRS 1 to measure cumulative translation differences for all foreign operations using amounts reported by its parent, based on the parent’s date of transition to IFRS. | Annual improvements |
| IFRS 3 Business Combinations | Clarifies that when accounting for a business combination, an acquirer:
| IFRS 3 amendments |
| IFRS 9 Financial Instruments | Clarifies which fees an entity includes when it applies the ‘10 percent’ test to assess whether there has been a modification or substantial modification to a financial liability. An entity should only include fees paid or received between the entity (the borrower) and the lender and fees paid or received on the other’s behalf. | Annual improvements |
| IFRS 16 Leases | To resolve any potential confusion regarding the treatment of lease incentives because of how it was initially illustrated in Example 13, the amendment removes reference to the reimbursement of leasehold improvements by the lessor. | Annual improvements |
| IAS 16 Property, Plant and Equipment | Clarifies that the proceeds from selling items produced while bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management are to be recognised in profit or loss (i.e. not deducted from the cost of property, plant and equipment). | IAS 16 amendments |
| IAS 37 Provisions, Contingent Liabilities and Contingent Assets | Costs of fulfilling a contract need to be considered when assessing whether a contract is onerous. The amendment clarifies that costs of fulfilling a contract are costs that relate directly to a contract. Such costs can be:
| IAS 37 amendments |
| IAS 41 Agriculture | Removes the requirement in IAS 41, paragraph 22 for entities to exclude taxation cash flows when measuring the fair value of a biological asset using a present value technique. Entities will therefore include taxation cash flows when measuring fair value using a present value technique, which will ensure consistency with IFRS 13 Fair Value Measurement. | Annual improvements |