GAAP ALERT No.9/2008
31 May 2008
By Colin Parker B.Bus FCA MAICD
Principal, GAAP Consulting, colin@gaap.com.au
Member of the Australian Accounting Standards Board
INTRODUCTION
Audit Hot Spot – Impairment, Fair Value and Estimates
By Justin Reid CA, Associate GAAP Consulting
With 30 June 2008 fast approaching, preparers and auditors should be looking closely at the appropriateness of fair value measurements in the balance sheet, and disclosures in the notes, particularly given the current economic conditions. Impairment indicators are expected to exist in some markets (e.g., shares, property, and for certain financial instruments) for the first time since the introduction of AIFRS. The introduction of AASB 7 ‘Financial Instruments: Disclosures’ significantly increases both qualitative and quantitative information about the exposure to credit risk, liquidity risk and market risk disclosures in the financial statements. There are two auditing standards that are particularly relevant in this context.
Under ASA 545 ‘Auditing Fair Value Measurements and Disclosures’ an auditor must consider and address fair value measurements, presentation and disclosure, the client’s process for determining fair values, the applicable reporting framework, and respond accordingly to the risks associated with the fair values being materially misstated.
From an audit risk perspective, management’s process for determining fair values is of the greatest importance. How does the client determine the appropriate fair value? Does management have adequate processes to effectively monitor material changes to those fair values? How long has it been since an assessment of the carrying values has been made? Vague answers to these questions by management will determine the risk of misstatement very quickly, and the auditor’s attention must turn towards the fair values in the financial statements with a greater degree of professional scepticism.
In addition to ASA 545, auditors should pay increased attention to the elements within ASA 540 ‘Audit of Accounting Estimates’. Accounting estimates are made throughout the financial statements and are obviously central to key calculations, such as the measurement of fair values. Fair value calculations will often require an estimate of various elements such as: the amount and timing of future cash flows; the expected variations in the cash flows; interest rates; growth rates; probabilities; discount rates; terminal values; and the costs to sell.
Under the standard, the auditor must adopt one, or a combination, of the following approaches in the audit of an accounting estimate: review and test the process used by management; use an independent estimate for comparison with the one prepared by management; or review subsequent events which provide evidence of the reasonableness of the estimate made.
It is the use of subsequent events that will allow the auditor to assess the reasonableness of management’s estimates, e.g., increases to official interest rates occurring post balance date may bring confirm the reasonableness of estimates calculated by management at the balance date.
Remember that management is responsible for the financial statements and ergo responsible for the measurement and disclosure of fair values and impairment. To that end make sure that management representations are received prior to providing the audit opinion, and that as a minimum, the representations provide:
The appropriateness of the methods and related assumptions used in determining the fair values; The completeness and appropriateness of disclosures related to fair values; and Whether subsequent events require adjustment to the fair value measurements and disclosures included in the financial report.
Fair value, impairment and key accounting estimates should be identified as matters of significant audit interest in the audit plan and discussed with preparers and those charged with governance. ASA 545 ‘Auditing Fair Value Measurements and Disclosures’ and ASA 540 ‘Audit of Accounting Estimates’ will need emphasis for this reporting period.
AASB May Meeting Highlights
Highlights of 21-22 May AASB meeting included.
Key Management Personnel Disclosures: Agreed to make out-of-session a proposed Accounting Standard AASB 2008-X ‘Amendments to Australian Accounting Standard – Key Management Personnel Disclosures by Disclosing Entities’ based on ED 162 ‘Proposed Amendments to Key Management Personnel Disclosures by Disclosing Entities’. The proposed AASB 2008-X will exempt disclosing entities that are companies that are required to disclose remuneration information about individual key management personnel (KMP) in the remuneration report under s.300A of the Corporations Act 2001, and Regulation 2M.3.03, from complying with the equivalent KMP disclosures in AASB 124 ‘Related Party Disclosures’ (paragraphs Aus25.2 to Aus25.7.2).
Amendments to AASB 1049 relating to AASB 101: Approved ED 163 ‘Proposed Amendments to AASB 1049 for Consistency with AASB 101. ED 163 proposes amendments to AASB 1049 primarily to align it with AASB 101 ‘Presentation of Financial Statements’ (September 2007) with the main proposal to require whole of governments and GGSs to prepare a statement of changes in equity in a manner consistent with the revised AASB 101. The ED will be placed on the AASB website for a one-month comment period.
GAAP/GFS Harmonisation for Entities within the GGS: In implementing the FRC’s direction to the AASB that the GAAP/GFS Harmonisation Project should cover entities within the GGS (which include government departments and statutory authorities), discussed the implications of applying the principles in AASB 1049 ‘Whole of Government and General Government Sector Financial Reporting’ to such entities. Decided that the broad principles of harmonisation currently applicable to GGSs and whole of governments through AASB 1049 should be applied to not-for-profit entities within the GGS. Financial reports of not-for-profit entities within the GGS should be prepared on a GAAP basis, modified particularly from a presentation and disclosure perspective to accommodate harmonisation with GFS. It is planned to issue an ED early in 2009 and a Standard in early 2010.
Differential Reporting/SMEs: Agreed that neither public accountability nor size thresholds provided a robust basis for identifying different tiers of reporting requirements in the Not-for-profit (NFP) sector; and that there should not be any classification of different types of entities in the NFP sector other than between private and public entities. All NFP private sector entities would apply a reporting system consisting of three choices: full IFRSs (as adopted in Australia); or the IFRS for SMEs (as adopted in Australia); or a regime of full IFRS recognition and measurement requirements and limited specified disclosures to be determined by the AASB. All NFP public sector entities would apply a reporting system with two tiers: financial reporting at Federal, State and Territory levels would apply full IFRSs (as adopted in Australia); and all other public sector entities would have the choice of applying one of the following: full IFRSs (as adopted in Australia); or the IFRS for SMEs (as adopted in Australia); or a regime of full IFRS recognition and measurement requirements and limited specified disclosures to be determined by the AASB.
Decided to consider the following issues at future meetings: the relationship between lodgement on a public register and the general purpose nature of financial statements; the nature of the financial statements of grandfathered companies prepared in accordance with accounting standards; and a draft Application Standard depicting a change of application focus from ‘reporting entity’ to ‘general purpose financial statements’.
Not-for-Profit Entity Definition: Considered comments on ITC 14 ‘Proposed Definition and Guidance for Not-for-Profit Entities’ and agreed that:
The project should be dealt with as part of the criteria being developed for determining when it might be appropriate to permit or require a departure from IFRSs in respect of NFP entities There was not a sufficient basis for changing from ‘not-for-profit entity’ The existing content of the definition should be used; draft guidance should be developed using a range of sources, including the guidance prepared by the New Zealand FRSB, the Heads of Treasuries Accounting and Reporting Advisory Committee and the Australasian Council of Auditors-General, and That NFP entities disclose their status in certain circumstances.
Superannuation Plans and ADFs: In preparing a draft ED, the following decisions were made:
Primary users were identified (members and beneficiaries, parties that are employed to act on behalf of members and beneficiaries, advisors, unions, and employer sponsors) If a particular IFRS recognition, measurement or presentation requirement applied, the entity should also apply the relevant accompanying IFRS disclosure requirements Superannuation plans that have members who are entitled to the higher of a defined benefit entitlement or a contribution-based amount should separate such entitlements into a ‘host promise’ and a ‘higher of option’, recognise and account for the host promise in the same way as defined benefit entitlements, and recognise the higher of option separately and measure it at its fair value That a deficiency in assets attributable to the plan’s defined benefit members compared with the members’ accrued benefits does not give rise to a receivable from the employer sponsor, unless there is a specific contractual agreement, and Disclosure of information about the nature and implications of the deficiency.
AASB Membership: Mr. Des Pearson, Auditor-General Victoria, retires from the AASB on completion of his term on 6 June 2008, and
25-26 June Meeting: Anticipated agenda items include: annual improvements; cost of a subsidiary; GAAP/GFS (entities within the GGS); interpretations; service concessions (IPSASB proposals); social benefits; and superannuation Plans and ADFs.
Insights into Forthcoming Report on ASIC Audit Inspections
ASIC will shortly release it report on the results of Audit Inspection Program and has outlined its findings from the latest round of audit inspection. Highlights included:
Firms previously inspected committed additional technical resources and generally had sound quality control procedures and training programs Shortcomings for firms visited for the first time included: client acceptance and continuance practices were not adequately documented, audit methodologies did not fully comply with the force of law standards, engagement quality reviews were not being adequately performed, and monitoring systems are not up-to-date Instances where documentation on the engagement file failed to provide sufficient evidence to support certain audit assertions.
The future focus will be on those firms that audit entities of significant public interest (including companies that are in the unlisted retail finance sector, and those issuing unlisted and unrated debentures). Particular areas of focus will be:
Independence and audit quality, including documentation around significant audit judgements Implementation of the new network firm definition Processes and documentation of approval to perform non-audit services, and The poorly executed Auditing Standards on sampling, fraud, analytical review, risk, related parties and compliance with laws and regulations, using the work of experts and other auditors, going concern, audit consultations and associated documentation.
Justin Reid, Associate, GAAP Consulting has recently conducted a number of training sessions for audit firms on preparing for an ASIC inspection, audit independence, recently issued auditing standards, and refresher courses on key legally-backed auditing standards. Justin also conducts quality assurance reviews and training on CaseWare Audit Software. Colin Parker has recently provided expert opinions on two matters before the Companies Auditors and Liquidators Disciplinary Board. We have also published two auditing checklists.
AUASB June Meeting Agenda
The agenda for 2-3 June meeting of the AuASB includes:
ASAE 3100 ‘Compliance Engagements’ Guidance Statement: Auditor’s Report Included in the Annual Directors’ Report Pursuant to S300a of the Corporations Act 2001 GS 009 ‘Financial and Compliance Audits of Self Managed Superannuation Funds’ Review Engagements ASA Redrafting for Clarity, and International Matters.
Australian Review of Credit Rating Agencies
Senator the Hon. Nick Sherry, Minister for Superannuation and Corporate Law, announced that he has asked the Treasury, working closely with the ASIC, to review the regulation of credit rating agencies (CRAs) and research houses in Australia. The review will commence work immediately, and report to the Government within six months.
“There have been some very serious concerns voiced to me about the role CRAs may have played in some aspects of recent financial market problems, including the U.S. sub-prime mortgage situation – so we need to make sure the system is up-to-date” Minister Sherry said. “I have asked Treasury and ASIC to immediately review the regulation of credit rating agencies and to seek input from the Australian Prudential Regulation Authority (APRA) and other relevant agencies, together with stakeholders from the investor, shareholder and superannuation communities”.
In addition to CRAs, the review will examine financial product research houses, in particular the role they played in the provision of advice to investors in several major recent corporate collapses, such as Westpoint. “In relation to research houses, I’ve requested a review of the appropriateness of the current regulatory framework and whether it might also require updating.” To ensure we get the full picture, the review will also look at how ratings advice is used by retail and wholesale investors. As such, I have asked Treasury and ASIC to consult with key investor groups such as the Securities and Derivatives Industry Association, the Investment and Financial Services Association, the Association of Superannuation Funds of Australia and the Australian Shareholders’ Association,” Minister Sherry added.
APRA Releases Service Charter
APRA has released the APRA Service Charter as part of its on-going commitment to enhance transparency and accountability to its stakeholders. It explains how APRA carries out its role, and what those who deal with the prudential regulator can expect. The Charter was a recommendation of the Report of the Taskforce on ‘Reducing Regulatory Burden on Business’ (the Banks Report), which was endorsed by the Government in its Statement of Expectations for APRA.
Sub-prime Mortgage Crisis Report by ICAA
The Institute of Chartered Accountants in Australia has released a 20 page report ‘The collapse of the US sub-prime mortgage market – Understanding the impacts under IFRS’ that provides an insight into the various factors contributing to this credit crisis, and the impacts on the financial statements of financial institutions and investors in mortgage-backed securities. The Institute commissioned Patricia Doran Walters, PhD, CFA, President of Disclosure Analytics Inc to write a report to provide insights into the factors involved in the United States sub-prime mortgage market collapse. The report includes the effects that the collapse had on the financial statements of banks and other financial institutions.
IASB Amendments for Determining the Cost of an Investment
The International Accounting Standards Board (IASB) issued amendments to IFRSs for determining the cost of an investment in the separate financial statements. The amendments to IFRS 1 ‘First-time Adoption of International Financial Reporting Standards’, and IAS 27 ‘Consolidated and Separate Financial Statements’ respond to constituents’ concerns that retrospectively determining cost and applying the cost method in accordance with IAS 27 on first-time adoption of IFRSs cannot, in some circumstances, be achieved without undue cost or effort. In due course, the AASB will issue these amendments in the Australian context.
The amendments address that issue by:
Allowing first-time adopters to use a deemed cost of either fair value or the carrying amount under previous accounting practice to measure the initial cost of investments in subsidiaries, jointly controlled entities and associates in the separate financial statements, and Removing the definition of the cost method from IAS 27 and replacing it with a requirement to present dividends as income in the separate financial statements of the investor.
The amendments to IAS 27 also respond to queries regarding the initial measurement of cost in the separate financial statements of a new parent formed as the result of a specific type of reorganisation. The amendments require the new parent to measure the cost of its investment in the previous parent at the carrying amount of its share of the equity items of the previous parent at the date of the reorganisation.
These amendments result from the IASB’s consideration of responses to proposals in two exposure drafts: Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate (December 2007) and Cost of an Investment in a Subsidiary (January 2007). The amendments to IFRS 1 and IAS 27 will apply for annual periods beginning on or after 1 January 2009, with earlier application permitted.
IASB First Annual Improvements Project Concluded
The IASB issued ‘Improvements to IFRSs’; a collection of amendments to IFRSs. These amendments are the result of conclusions the IASB reached on proposals made in its annual improvements project. Unless otherwise specified, the amendments are effective for annual periods beginning on or after 1 January 2009, although entities are permitted to adopt them earlier. In due course, the AASB will issue these amendments in the Australian context.
The IASB decided to initiate an annual improvements project in 2007 as a method of making necessary, but non-urgent, amendments to IFRSs that will not be included as part of another major project. The objective was to ease the burden for all concerned by presenting the amendments in a single document, rather than as a series of piecemeal changes. The amendments issued are presented in two parts, those that involve accounting changes for presentation, recognition or measurement purposes, and involving terminology or editorial changes with minimal effect on accounting.
The following lists the IFRSs where amendments have been made that can result in accounting changes for presentation, recognition or measurement purposes and the topics addressed:
IFRS 5 ‘Non-current Assets Held for Sale and Discontinued Operations’: Plan to sell the controlling interest in a subsidiary IAS 1 ‘Presentation of Financial Statements’: Current/non-current classification of derivatives IAS 16 ‘Property, Plant and Equipment Recoverable Amount’: Sale of assets held for rental IAS 19 ‘Employee Benefits’: Curtailments and negative past service cost; plan administration costs; replacement of term ‘fall due’; and guidance on contingent liabilities IAS 20 ‘Accounting for Government Grants and Disclosure of Government Assistance’: Government loans with a below-market rate of interest IAS 23 ‘Borrowing Costs’: Components of borrowing costs IAS 27 ‘Consolidated and Separate Financial Statements’: Measurement of subsidiary held for sale in separate financial statements IAS 28 ‘Investments in Associates’: Required disclosures when investments in associates are accounted for at fair value through profit or loss; and impairment of investment in associate IAS 31 ‘Interests in Joint Ventures’: Required disclosures when interests in jointly controlled entities are accounted for at fair value through profit or loss IAS 29 ‘Financial Reporting in Hyperinflationary Economies’: Description of measurement basis in financial statements IAS 36 ‘Impairment of Assets’: Disclosure of estimates used to determine recoverable amount IAS 38 ‘Intangible Assets’: Advertising and promotional activities; and units of production method of amortisation IAS 39 ‘Financial Instruments: Recognition and Measurement’: Reclassification of derivatives into or out of the classification of at fair value through profit or loss; designating and documenting hedges at the segment level; and applicable effective interest rate on cessation of fair value hedge accounting IAS 40 ‘Investment Property’: Property under construction or development for future use as investment property, and IAS 41 ‘Agriculture’: Discount rate for fair value calculations; and additional biological transformation.
During its deliberations of comments received on the exposure draft of proposals published in October 2007, the IASB decided to postpone reconsideration of some of the proposals until more analysis could be completed. The IASB also decided to issue separately the amendment to restructure IFRS 1 ‘First-time Adoption of International Financial Reporting Standards’. The amendments issued do not include those proposals.
Conceptual Framework Due Process Documents Issued by IASB and FASB
The IASB and US Financial Accounting Standards Board (FASB) published two consultative documents ‘An Improved Conceptual Framework for Financial Reporting: Chapter 1: The Objective of Financial Reporting and Chapter 2: Qualitative Characteristics and Constraints of Decision-useful Financial Reporting Information)’ and ‘Preliminary Views on an Improved Conceptual Framework for Financial Reporting: The Reporting Entity’. Comments on both documents are sought by 29 September 2008. These due process documents will shortly be issued in the Australian context by the AASB.
The first exposure draft of chapters 1 and 2 of the framework seeks views on an improved objective of financial reporting, the qualitative characteristics of information provided by financial reporting and constraints on the provision of that information. The exposure draft proposes that the objective of financial reporting is to provide financial information that is useful to present and potential equity investors, lenders and other creditors in making decisions in their capacity as capital providers. It also presents an improved description of ‘faithful representation’, one of the qualitative characteristics that financial information should possess if it is to provide a useful basis for economic decisions.
The consultative document published sets out the Boards’ preliminary views on the reporting entity concept and related issues. Although the reporting entity concept determines some important aspects of financial reporting, the Boards’ existing frameworks do not address it specifically. The Boards’ preliminary views are: a reporting entity is a circumscribed area of business activity of interest to present and potential equity investors, lenders and other capital providers; control is the basis for determining the composition of a group reporting entity; and consolidated financial statements should be prepared from the perspective of the group reporting entity.
The IASB and FASB added this project to their agenda in October 2004 with objective to develop an improved common conceptual framework which provides a sound foundation for developing future accounting standards. Such a framework is essential to fulfilling the Boards’ goal of developing standards that are principle-based and internally consistent, and lead to financial reporting that provides the information capital providers need to make decisions in their capacity as capital providers. The new framework, which will deal with a wide range of issues, will build on the existing IASB and FASB frameworks and consider developments since those frameworks were created.
The project is being undertaken in eight phases, of which four are currently active (phases A to D). The boards are currently working on initial consultative documents for phases B and C, currently planned for publication in 2009:
A Objectives and qualitative characteristics
B Definitions of elements, recognition and derecognition
C Measurement
D Reporting entity concept
E Boundaries of financial reporting, and presentation and disclosure
F Purpose and status of the framework
G Application of the framework to not-for-profit entities, and
H Remaining Issues.
The International Public Sector Accounting Standards Board (IPSASB) continues to make progress on developing a public sector conceptual framework. At its meeting in Moscow, in June 2008, the IPSASB plans to approve for public comment a consultation paper covering the objectives of general purpose financial reporting, the scope of general purpose financial reporting, qualitative characteristics of financial information included in general purpose financial reports, and the reporting entity.
Tougher Independence Rules Proposed by IESBA
The International Ethics Standards Board for Accountants (IESBA), an independent standard-setting board within the International Federation of Accountants (IFAC), has issued a re-exposure draft of proposals to strengthen the independence requirements contained in the IFAC ‘Code of Ethics for Professional Accountants’ for the provision of internal audit services to a public interest audit client, and the safeguards that are required when fees from a public interest audit client exceed 15% of the total fees of the firm.
The re-exposure draft contains two key proposals. The first would prohibit independent auditors from providing internal audit services related to internal controls, financial systems or financial statements to an audit client that is a public interest entity. The second proposal requires that an annual pre- or post-issuance review be conducted by a professional accountant who is not a member of the firm when the revenues from one public interest entity client exceed 15% of total firm revenue for two consecutive years. Comments on the exposure draft are sought by 31 August 2008. It is anticipated that these proposal will be issued in the Australian context by the APESB.
IFAC Seeks Public Members for IAASB
The IFAC is seeking nominations for two public member positions on the International Auditing and Assurance Standards Board (IAASB) beginning in January 2009. Individuals, organisations, accountancy firms, and IFAC member bodies and associates may submit nominations for the public member positions by 22 June 2008, using the electronic Candidate Information Form.
Nominees for the public member positions must have an appropriate level of knowledge about the work of the IAASB, although they need not have a professional accountancy designation. Public members are expected to act in the public interest and must be seen to be independent of any special interests and seen to be acting to represent society as a whole.
Public members of the IAASB will participate in the development of assurance standards on green house gas emissions and reports on controls at third party service organizations, as well as the development of other new and amended international standards following the IAASB’s rigorous due process. Some IAASB members will also be engaged in liaison activities with key regulatory and other organizations, including meetings, presentations and participation in forums and workshops. For more information about general qualifications for nominees, their responsibilities, and the process for submitting nominations, see the Call for Nominations on IFAC’s website.
IFAC Paper on Crucial Role of Professional Accountants in Mid-sized Enterprises
The Professional Accountants in Business (PAIB) Committee of IFAC released a new publication ‘The Crucial Roles of Professional Accountants in Mid-sized Enterprises’ which features interviews conducted by Mr. Eric Krell, an experienced financial journalist, with 10 senior-level professional accountants in business on their experiences in mid-sized enterprises. The interviews illustrate the critical roles that professional accountants in business play in identifying and addressing the unique challenges that mid-sized enterprises face.
This interview-based information paper is part of a larger PAIB Committee project on mid-sized enterprises. It will serve as the basis for the development of principles-based good practice guidance on the typical challenges that mid-sized enterprises confront, and how professional accountants in business can help in responding to those issues. The paper can be downloaded free-of-charge from the IFAC online bookstore.
Financial Reporting Supply Chain Report by IFAC
IFAC has released a 57 page report ‘Financial Reporting Supply Chain: Current Perspectives and Directions’ that examines key areas of the financial reporting process: corporate governance, preparation, audit, and usefulness of financial reports. It concluded that while the relevance and reliability of financial information worldwide has improved, the understandability of financial reports has not. Benefits from the changes included improved quality of information as a result of better standards and regulatory processes, while negatives included the increasing complexity of reports, disclosure overload and the use of fair values that impaired usefulness.
The report identifies further improvements in the area of communication between participants in the financial reporting supply chain process, higher quality short-form reporting, and better aligned internal and external reporting. The report reflects the results of the 2007 survey that investigated whether the recent changes to financial reporting practices have achieved their objectives of making financial reports more or less reliable, relevant and understandable. The full text of the report is available from the IFAC bookstore.
Sustainability Reporting Guide Released by G100
The Group of 100, and KPMG, released a comprehensive good practice guide for companies and organisations engaged in the preparation of sustainability reports. The publication ‘Sustainability Reporting: A Guide’ provides directors and senior executives with a timely and useful tool when addressing this rapidly evolving area of reporting. This guide, while not prescriptive, provides preparers with a highly useful framework for reporting.
Concerns about global warming, atypical weather patterns and the proposed introduction of a national carbon trading scheme and community expectations have combined to make sustainability reporting a mainstream issue. The trend towards ESG (environmental, social, governance) reporting is driven by two key factors: an increasing recognition of the potential for sustainability related factors to materially affect a company’s long term economic performance. Copies of the guide can be obtained from Group of 100 site or email.
GAAP Training Insights
Our colleague, David Sauer, during the April/May period has been involved a large number of training sessions on financial reporting issues, with an emphasis on AASB 7 ‘Financial Instruments: Disclosures’, and the impacts on financial statements of market volatility and an uncertain economic outlook. A number of accounting firms have also sought in-house training from him for tailored to different levels of audit or other professional staff.
David reports an unusual number of requests for advice on accounting for changes in value of different types of financial instruments. This appears to reflect there are preparers who have not previously dealt with the accounting for fair value fluctuations. Difficulties are showing up where there has been insufficient prior understanding of how to account for financial instruments.
NIA Accounting and Auditing Seminar (Perth)
The 30 June reporting season sees new challenges for accountants, directors, and auditors. On the financial reporting front, there are the complex disclosures about your policies and processes for managing liquidity, credit and market risks for debtors, creditors, loans, and investments. There is also a raft of newly issued accounting standards to understand the business implications, and proposed differential changes to reporting by SMEs, not-for-profit, and public sector entities.
On the auditing front, ASIC and the accounting bodies have identified a number of poorly applied auditing standards including risk and independence. There are also the new SMSF audit requirements to be considered. These are other contemporary auditing standards and issues that need to be understood to reduce audit risk.
The NIA has designed a course to address these contemporary GAAP and GAAS issues that is suitable for finance accountants, CFOs, directors and auditors: Friday, 4 July 2008; 8:30am – 4:30pm; Esplanade River Suites, (change name Pagoda) 112 Melville Parade, Como. For further details contact Glenys Woods on 08 9474 1755; by email; or visit the NIA’s website.
Outstanding Exposure Drafts
Accounting
16 June Request for Comment ITC 15 on IPSASB ED 34 ‘Social Benefits: Disclosure of Cash Transfers to Individuals or Households’ – AASB
16 June IPSASB Consultation Paper ‘Social Benefits: Issues in Recognition and Measurement’ – AASB
30 June ITC ‘Accounting and Financial Reporting for Service Concession Arrangements’ – AASB
15 July ED 34 ‘Social Benefits: Disclosure of Cash Transfers to Individuals or Households’ – IPSASB
15 July Consultation Paper ‘Social Benefits: Issues in Recognition and Measurement’ – IPSASB
1 August Discussion Paper ‘Financial Instruments with Characteristics of Equity’ – AASB
1 August Consultation Paper ‘Accounting and Financial Reporting for Service Concession Arrangements’ – PSASB
22 August Discussion Paper ‘Reducing Complexity in Reporting Financial Instruments’ – AASB
5 September Discussion Paper ‘Financial Instruments with Characteristics of Equity’ – IASB
19 September Discussion Paper ‘Reducing Complexity in Reporting Financial Instruments’ – IASB
19 September Discussion paper ‘Preliminary Views on Amendments to IAS 19 Employee Benefits’ – IASB
29 September ‘An Improved Conceptual Framework for Financial Reporting: Chapter 1: The Objective of Financial Reporting and Chapter 2: Qualitative Characteristics and Constraints of Decision-useful Financial Reporting Information)’ – IASB and FASB
29 September ‘Preliminary Views on an Improved Conceptual Framework for Financial Reporting: The Reporting Entity’ – IASB and FASB
Ethics
31 August ‘Section 290 of the IFAC Code of Ethics for Professional Accountants, Independence - Audit and Review Engagements’ – IESBA
We’d like to know what you think about GAAP Alert. Please share your feedback by emailing info@gaap.com.au
Please forward this GAAP Alert to a colleague for their information and use. GAAP Alert registrations can be made directly at http://www.gaap.com.au
Please click here if you wish to unsubscribe.
Consulting, Training, Information Services
© GAAP.COM.AU
While all reasonable care has been taken in the preparation of information contained in this newsletter, we take no responsibility for any action(s) taken on the basis of information contained herein or for any errors or omissions in that information. We expressly disclaim any liability whatsoever, to any person in relation to any reliance, in whole or in part, on such information. Readers should consult a suitably qualified professional adviser to obtain advice tailored to their particular circumstances.
|
