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Reader Comments on ::   Comparatives
Yes, I also agree with Mr. Roy in saying that every Bhutanese Accounting Standards have ‘Effective date’ for implementation. If we all agree, Phase I standards is operative for the periods beginning on or after 1st January 2013 and the timeline agreed was from 2013-2015. I would suggest that implementation of Phase I standards in 2014 and 2015 will not be considered as early adoption. If the BAS Phase II and III Standards are implemented within phase I timeline, then it is considered as early adoption, provided it is permitted by the BAS Standards.
Posted By: Sonam Wangdi      Posted on: 2018-05-15 11:57:13
International standards always show a date from which they are effective but always say that early adoption is allowed. So any company can decide to adopt a standard from the second or third phase now. AASBB have agreed with this approach.
The issue on Comparatives was originally raised to consider the impact of the mandatory, first phase, standards had on past years and whether the introduction of BAS had to be completed in 2013 or could be done over the period 2013-15.
The only standard that I know of requires you to show 3 years (2011, 2012,and 2013) in the published accounts is BFRS-1 First Time Adoption which is in the third phase. So I comply with the first phase requirements if I just present updated comparative figures for 2012. BAS 1 may say I have to calculate 2011 but I'm not required to include it in my financial statements. Since you can't see 2011 who knows if I really have recalculated 2011 or not. The clause in BAS 1 only makes sense if BFRS -1 is implemented at the same time.


Posted By: Roy Whittington      Posted on: 2018-05-15 11:57:13
Its been mentioned that early adoption of BAS will only be allowed if allowed by BAS , so for phase one implementation even though the period of full implementation is 2013 to 2015 since there is no break up of stds which can be implemented in which year , so full implementation of phase one stds in 2013 , will those be considered a early adoption and for phase two implementation if we are to adopt them within the time period for phase one implementation then from where do we confirm whether that std is allowed for early adoption or not.
Posted By: Sonam Choeden      Posted on: 2018-05-15 11:57:13
To my understanding "to be implemented from January 2013 till end of 2015" would mean that only 18 standards of BAS Phase I will be mandatory for implementation in the year 2013, 2014 and 2015 to claim compliance with BAS. Other than those 18 standards of BAS Phase I, entity may choose to adopt rest of the standards for early implementation provided early application is permitted by the BAS. The 9 additional standards will be issued for implementation in BAS Phase II and will be mandatory for entity preparing financial statements to comply with 18 standards of BAS Phase I and 9 standards of BAS Phase II in 2016 and 2017.

I am sure none from AASBB Secretariat would have said BAS 1 is equivalent of BFRS 1. However this is required as per paragraph 10 and 39 of BAS 1 and the requirement of paragraph 21 of BFRS 1 states “To comply with BAS 1, an entity’s first BAS financial statements shall include at least three statements of financial position, two statements of comprehensive income, two separate income statements (if presented), two statements of cash flows and two statements of changes in equity and related notes, including comparative information.”

Posted By: Tshechu      Posted on: 2018-05-15 11:57:13
DHI Group is partly relying on the comments by the Chairman of the AASBB in the Foreword to the published BAS. In the first paragraph on the second page, He says that 18 standards are issued "to be implemented January 2013 till end of 2015" Our understanding of this is that means that companies should do their best to comply in 2013 but some leeway is possible.
BFRS -1 First Time Adoption was placed in the 3rd phase of introduction, so that companies would not be faced with the task of restating 2011 and 2012 at the same time as implementing BAS for the first time. Implementing in 2013 is a big enough task without having to go back 2 years. By the time phase 3 arrives companies will have been preparing accounts under BAS for 6 years and only companies affected by phase 3 standards would have to restate earlier years.
Now you are saying that the clause in BAS 1 is the equivalent of BFRS -1 and full restatement of 2011 and 2012 needs to be done in 2013.
What we are intending is close to the old GAAP accounting policy of saying that if figures are re-arranged or reclassified, the comparatives would be changed at the same time. Examples are the splitting borrowings into current and long term portions and not showing the final dividend as an appropriation of the year's profit
Posted By: Roy Whittington      Posted on: 2018-05-15 11:57:13
Besides the reasons other than impracticability to apply the accounting policies retrospectively for not being able to determine the cumulative effect of applying the policy to all prior periods, an entity should prepare (as required by para 10(f) and para 39 of BAS 1) comparative information for a minimum of three statements of financial position, two of each of the other statements and related notes. The statement of financial position to be prepared as at are:
(a) The end of the current period;
(b) The end of the previous period;
(c) The beginning of the earliest comparative period.
Posted By: Sonam Wangdi      Posted on: 2018-05-15 11:57:13
For the DHI Group companies, we have decided to limit changes to the comparatives to the 2012 Balance Sheet. If BAS requires a major change of the information presented, the comparatives will be updated to assist users
We don't see any significant changes in the P & L so no changes are required.
Please give us the AASBB's view on our policy.
Posted By: Roy Whittington      Posted on: 2018-05-15 11:57:13

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