GAAP ALERT No.10/2010 To read on line please click here
By Colin Parker B.Bus FCA MAICD
Principal, GAAP Consulting, colin@gaap.com.au
Member of the Australian Accounting Standards Board (2006-2009)
INTRODUCTION
- The provision of a quick overview of the new differential reporting regime, now based on the concept of publicly accountable entities and general purpose financial statements
- Review of key elements of the new RDR and its impacts
- Answering over 40 questions of the RDR
- Identification of the key elements of implementation plan, and
- Provision of four RDR Disclosure Checklists.
‘The Reduced Disclosure Regime – A Practical Guide to Implementation’ is an important first step in coming to grips with changes. Further steps required include:
- High level briefings on the reporting regime changes
In-depth in house tailored training on the RDR Standards
- Refresher courses on the recognition and measurement rules of specific accounting standards for certain entities
- Diagnostic reviews of individual entity financial statements for the impact of the changes, and
- Compliance review of financial statements with the new regime.
For the Public Practitioner there are further steps to consider including:
- Client communication and seminars
- Determining the application of publicly accountable entity in individual entity circumstances
- Preparing clients for the transition to new reporting regime
- Revision to internal policies and procedures regarding client financial reporting, and
- Quality assurances reviews of financial reporting templates and individual financial statements.
“Every accountant involved in financial reporting and those charged with governance will need to know about the new reporting rules now; that is why we have authored ‘The Reduced Disclosure Regime: A Practical Guide to Implementation’, and are ready to assist with training and implementation”. Contact Colin Parker, Principal, GAAP Consulting, 0421 088 611 (03 9890 4440) or colin@gaap.com.au. For an order form or further information on our RDR services please visit www.gaap.com.au.
Corporate Reporting Reform – More Information Available from ASIC Soon
ASIC flagged that recent changes may affect a company’s financial reporting obligations with ASIC. The changes, introduced by the Federal Government on 1 July 2010, reduce reporting requirements for Australian companies. These reforms also change what is required in financial reports lodged with ASIC. The key changes around financial reporting are:
- The introduction of a three-tiered differential reporting framework that will apply to companies limited by guarantee, which typically have a not-for-profit purpose
- Improved disclosure of non-financial information in the directors’ report
- Refinements to the statement of compliance with IFRS contained in the directors’ declaration
- More flexibility to change year-end dates to better manage the workload on companies and auditors during peak reporting periods.
Other changes to the regulatory framework include: improving disclosure of non-financial information in the directors’ report; refining the statement of compliance with IFRS contained in the directors’ declaration; and clarifying the circumstances in which a company can cancel its share capital.
ASIC stated that companies may wish to obtain professional advice from an accountant or lawyer in considering the impact of these changes. ASIC has indicated more information will be available soon. The GAAP Consulting team has been training and advising clients on these corporate reporting reforms.
Annual Improvements Project – More Amending Standards
The AASB issued amending standard AASB 2010-3 ‘Amendments to Australian Accounting Standards arising from the Annual Improvements Project’ and AASB 2010-4 ‘Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project’. AASB 2010-3 is operative for reporting periods beginning 1 July 2010 and AASB 2010-4 is operative for reporting periods beginning 1 January 2011.
The standards impacted and the nature of the amendments are:
- AASB 1 ‘First-time Adoption of IFRSs’: Accounting policy changes in the year of adoption; Revaluation basis as deemed cost; and Use of deemed cost for operations subject to rate regulation
- AASB 3 ‘Business Combinations’: Transition requirements for contingent consideration from a business combination that occurred before the effective date of the revised IFRS; Measurement of non-controlling interests; and Un-replaced and voluntarily replaced share-based payment awards
- AASB 7 ‘Financial Instruments: Disclosures’: Clarification of disclosures
- AASB 101 ‘Presentation of Financial Statements’: Clarification of statement of changes in equity
- AASB 127 ‘Consolidated and Separate Financial Statements’: Transition requirements for amendments arising as a result of IAS 27
- AASB 134 ‘Interim Financial Reporting’: Significant events and transactions, and
- Interpretation 13 ‘Customer Loyalty Programmes’: Fair value of award credits.
AASB 1048 Interpretation of Standards – Updated Listing
The AASB re-issued AASB 1048 ‘Interpretation of Standards’. It is operative for reporting periods ending 30 June 2010. This revision, which supersedes the version of AASB 1048 issued in March 2009 has been amended to:
- Update Tables 1 (international interpretations) and Table 2 (domestic interpretations) to remove older versions of interpretations that have been superseded. They also include their newer amended counterparts, and
- Add to Table 1 the new AASB Interpretation 19 ‘Extinguishing Financial Liabilities with Equity Instruments’, which is applicable for financial years beginning on or after I July 2010.
More Changes Proposed to AASBs from Trans-Tasman Convergence
Australia and New Zealand are a step closer to having a common set of financial reporting standards, as a result of the release of two exposure drafts that will amend financial reporting standards in both countries. The EDs propose to eliminate many of the IFRS-related differences between the two countries for for-profit entities, and represent the first phase of a longer-term project to harmonise accounting requirements in Australia and New Zealand.
ED 200A ‘Proposals to Harmonise Australian and New Zealand Standards in Relation to Entities Applying IFRSs as Adopted in Australia and New Zealand’ proposes amendments to Australian and New Zealand financial reporting standards, including: the paragraphs proposed to be deleted, added or aligned to harmonise requirements; and the paragraphs proposed to be relocated to a new Australian disclosure standard and a new New Zealand disclosure standard.
ED 200A proposes amendments to eight AASBs and three Interpretations. They are: AASB 1 ‘First-time Adoption of Australian Accounting Standards’; AASB 5 ‘Non-current Assets Held for Sale and Discontinued Operations’; AASB 101 ‘Presentation of Financial Statements’; AASB 107 ‘Statement of Cash Flows’; AASB 108 ‘Accounting Policies, Changes in Accounting Estimates and Errors’; AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’; AASB 128 ‘Investments in Associates’; AASB 134 ‘Interim Financial Reporting’; Interpretation 2 ‘Members’ Shares in Co-operative Entities and Similar Instruments’; Interpretation 112 ‘Consolidation – Special Purpose Entities; and Interpretation 113 ‘Jointly Controlled Entities – Non-monetary Contributions by Venturers’.
The main proposals from an Australian perspective are to:
- Include the discussion of the true and fair over-ride in IAS 1 ‘Presentation of Financial Statements’ that is not currently in AASB 101 ‘Presentation of Financial Statements’
- Harmonise and simplify the audit fee disclosure requirements in AASB 101 and NZ IAS 1, and include them in the separate disclosure standards
- Harmonise and simplify the imputation credits disclosure requirements under AASB 101 and NZ IAS 12 ‘Income Taxes’, and include them in the separate disclosure standards, and
- Delete the requirement to disclose a reconciliation of cash flows arising from operating activities to profit or loss in AASB 107.
ED 200B ‘Proposed Separate Disclosure Standards’ (proposed standard is to be called Australian Additional Disclosures’) contains the paragraphs proposed in AASB ED 200A to be relocated to a separate Australian disclosure standard and a separate New Zealand disclosure standard. The AASB proposes the following paragraphs to be relocated to this separate disclosure standard with a number of them to be reworded to harmonise with the equivalent New Zealand disclosures:
- Definitions with specified meanings: Relocate some definitions with specific meanings currently contained in AASB 101 ‘Presentation of Financial Statements’ (Aus7.1)
- Compliance with Australian Accounting Standards: Relocate the compliance paragraph from AASB 101 (Aus15.2)
- Disclosure of the statutory basis: Relocate paragraph AASB 101 (Aus15.3)
- Disclosure of GPFS or SPFS: Relocate paragraph of AASB 101 (Aus15.4)
- Audit fee disclosures: Relocate the disclosures relating to audit fees under paragraphs AASB 101 (Aus138.1 and Aus138.2), and
- Imputation credit disclosures: Relocate the disclosures relating to imputation credits in paragraphs AASB 101 (Aus138.3 to Aus138.5).
Kevin Stevenson, chairman of the AASB, said both standards boards want to work towards harmonising the reporting requirements. “It will be easier for businesses operating in both Australia and New Zealand to comply with one set of standards instead of two sets,” Mr Stevenson said. “We welcome comments on these proposals as the first step towards a common set of financial reporting standards,” said Joanna Perry, chairman of the Financial Reporting Standards Board. Comments are requested by 8 October. It is proposed that any resulting amendments will be effective for annual reporting periods beginning on or after 1 July 2011, with early adoption permitted.
Proposed Improvements to Level 3 Fair Value Disclosures
The AASB released ED 199 ‘Measurement Uncertainty Analysis Disclosure for Fair Value Measurements (Limited re-exposure of proposed disclosure)’ for comment by 16 August 2010. The Exposure Draft proposes improvements to the Level 3 fair value measurement disclosures that were proposed in ED 181 ‘Fair Value Measurement’ (June 2009). Comments to the IASB are due by 7 September 2010.
Standard Business Reporting Opens for Business
With the commencement of Standard Business Reporting (SBR) on 1 July, Australia has moved one step closer to a seamless national economy, the Minister for Finance and Deregulation, Lindsay Tanner MP, and the Minister for Financial Services, Chris Bowen said. SBR is now open for business, offering Australian businesses, accountants, bookkeepers, tax agents and payroll professionals a quicker and simpler way to complete and lodge reports to government. SBR reports include the Business Activity Statement, Tax File Number Declarations, PAYG payment summaries, payroll tax returns and financial statements.
“From today businesses and reporting professionals using SBR-enabled software will be able to pre-fill and complete government forms directly from their own accounting system and lodge electronically to participating government agencies using the single secure sign-on AUSkey,” Minister Bowen said. AUSkey has been co-designed with businesses, accounting professionals, software developers and government agencies as a key component of SBR. “In just over five weeks over 51,000 AUSkeys have been issued, to over 36,000 Australian businesses. AUSkey is positioned to be the single key to access government online services.”
“Using SBR-enabled software, businesses will spend less time and effort gathering, analysing and re-keying information and will be provided with an electronic receipt for their transaction in real time,” Minister Tanner said. “As software developers progressively update their products to support SBR, businesses will realise the benefits of lodging forms through their software directly to government agencies, including the Australian Taxation Office, Australian Securities and Investment Commission and all state and territory revenue offices.”
Essential Aspects of SBR from the AUASB
The AUASB has released a Bulletin for audit and assurance practitioners explaining the essential aspects of Standard Business Reporting (SBR) and XBRL. While SBR is not yet mandated by the Australian Government, its obvious advantages to all businesses will ensure its ultimate adoption in the foreseeable future by most Australian entities across both the public and private sectors. A very useful appendix entitled ‘What is happening in other countries?’ clearly explains how extensive the adoption has already been and to some extent demonstrates that Australia is already in catch-up mode with many countries in the world.
On a positive note, many Australian regulators including ATO, ASIC, APRA and State Revenue Offices are well advanced in implementing SBR across all activities within their jurisdiction. Hence, entities in the private sector dealing with these regulators, should be well advanced in their evaluations of SBR and XBRL. The time and cost advantages of using XBRL are proven, particularly when each and every bit of data needs to be entered only once in the system to cover the diverse reporting responsibilities of any entity.
While this Bulletin is directed to audit and assurance practitioners, the AUASB has provided an excellent overview of the current position and the future impacts of SBR and XBRL, and explains the future commitment of the AUASB.
New Rules to Improve Calculation of Income Tax Liabilities from Consolidated Groups
The Federal Government proposes to amend income tax law to improve the operation of rules relating to the calculation and collection of income tax liabilities from consolidated groups and multiple entry consolidated groups (MEC groups). The Assistant Treasurer, Senator Nick Sherry, said the measure will allow an entity in a tax sharing agreement to leave a consolidated group or MEC group clear of any future income tax liabilities relating to the group.
For consolidated groups and MEC groups, the changes will clarify that:
- Pay-As-You-Go (PAYG) liabilities can be recovered under the liability for payment rules in the income tax law, with effect from 11 May 2010; and
- An entity which pays its contribution amount under a tax sharing agreement can leave a group clear of any further liability, with effect from the 2004 05 income year.
Additional changes for MEC groups will ensure that:
- The liability for payment rules apply to those groups, with effect from 11 May 2010, and
- Where there is a change in the provisional head company during an income year, any PAYG instalments paid by the former provisional head company on behalf of the group are attributed to the group, with effect from 1 July 2002.
“These changes will overcome technical difficulties with the operation of the current law and will primarily ensure that the law is consistent with current practice,” Senator Sherry said. The Discussion Paper ‘Improvements to the calculation and collection of income tax liabilities from consolidated groups’ was released by Treasury in June with comments sought by 6 August.
Understanding Infrastructure Financial Management
Recent studies of the financial performance and position of Local Government entities suggest that a material number of these entities are not financially sustainable and are facing a significant renewal backlog for infrastructure assets for which they are responsible. These studies identified deficiencies in service planning, asset management planning, long-term financial planning and financial reporting.
In response to these identified short-comings the Institute of Public Works Engineering Australia (IPWEA) has published a manual entitled ‘Australian Infrastructure Financial Management Guidelines’ (AIFMG). This publication will be updated each half-year to cover changes in accounting standards and regulations relating to the financial management of infrastructure assets. The publication addresses the needs of both core users and advanced users and is supported by a ‘Quick Guide’. The Guidelines are available from IPWEA by telephoning +61 2 8267 3001 or from their website.
The Guidelines provide a comprehensive and detailed coverage of matters necessary to support the financial sustainability frameworks established by the Australian Local Government and Planning Ministers Council. One of the principal objectives of these Guidelines is to bring management, engineers and accountants together in addressing the critical challenges.
Jim Dixon, Associate of GAAP Consulting is a Member of the Project Management Team and one of the three co-authors of these Guidelines. Jim had the challenge and responsibility of explaining accounting and auditing in a way that a non-accountant could both understand and use in their day-to-day work on projects covering infrastructure.
Part C Financial Reporting addresses the financial reporting framework, principles of disclosure in financial statements, accounting for property, plant and equipment, accounting for impairment and concludes with an explanation of the role and responsibility of an auditor and describes what an auditor expects those in management to do to fully support the legal obligations of an auditor.
At a recent working conference involving NSW Auditors Association and NSW Department of Local Government, one presentation was an update of the NSW financial code from Dennis Banecevic, Partner of PricewaterhouseCoopers. In referring to the AIFMG Dennis said to the NSW Auditors association: “This is the best document to come out of the industry for a very long time – I have read it and it is very, very good. The section on auditing is particularly illuminating. I encourage all auditors to read it and make sure your Councils have it and read it. We encourage the Department to endorse this as the standard”.
However, while compliance with relevant Australian Accounting Standards is accepted, good financial management goes beyond mere compliance. As Peter Way, Chair of IPWEA NAMS.AU, states in the foreword to the guidelines “optimal investment in infrastructure assets requires that those assets be appropriately maintained, renewed, replaced, enhanced or disposed of so as to provide the required levels of service now and into the future at the minimal life cycle cost” Peter concluded that “these Guidelines provide direction for every organisation and individual with responsibility for the management of infrastructure assets.”
In part D Application: Accounting for infrastructure, there is a detailed coverage of accounting, classification and recognition of assets, complex assets and components. Part D also details issues of determining capitalisation policies, valuation, impairment, accounting for overheads, determination of useful life, residual value, fair value, depreciation and revaluation.
In summary, these Guidelines provide a detailed coverage of accounting and financial reporting in the context of service planning, asset management planning and reviewing any service funding gap involving infrastructure. The Guidelines are valuable reference tool for 30 June 2010 reporting and beyond.
ED APES 230 ‘Financial Advisory Services’ Released by APESB
Accountants who are financial planners face stringent new professional requirements including the banning of commissions and percentage–based asset fees under the proposed new standard issued by the APESB. Under the proposed standard APES 230 ‘Financial Advisory Services’, which is effective from 1st July 2011, members of Australia’s three professional accounting bodies who are financial planners must only charge clients on a legitimate fee for service basis. The fee for service basis in the proposed standard prohibits all remuneration practices which are based on product sales or the accumulation of funds under management, including commissions, percentage-based asset fees and production bonuses.
While the federal government’s proposed new laws will see a ban on percentage-based asset fees when clients use gearing strategies to invest, APESB has gone a step further with their proposed standard APES 230 ‘Financial Advisory Services’, which will impose a prohibition on percentage-based asset fees regardless of gearing.
APESB Chairperson Kate Spargo welcomes the new standard as a turning point in renewing people’s confidence in their financial planners. “Accountants have a professional obligation to act in the public interest when providing professional services, including financial advisory services. They also have fiduciary obligations to their clients. Accordingly, accountants must not use remuneration practices that cause conflicts of interest if they are to comply with these obligations,” said Ms Spargo.
“Inappropriate financial advice driven by conflict of interests and culminating in such fiascos as Storm Financial and Opes Prime, has seen so many Australians suffer financial loss. We have an obligation to strengthen the safeguards for clients through the introduction of stricter requirements”, said Ms Spargo. “Clients place much trust in accountants when following their advice on wealth management, retirement planning and related matters. It is therefore vital that accountants provide these services whilst complying with the highest professional and ethical standards” she concluded.
APES 230 will supersede the existing APS 12 ‘Statement of Financial Advisory Standards’ and is currently at the exposure draft stage, with comments sought by 15 September.
Self-Funded Retirees to Benefit from an Extension in Drawdown Relief
The Federal Government has decided to extend the reduction in the minimum pension draw down for the year 1/7/2010 – 30/6/2011. Drawdown relief over the past two years has helped retirees with account-based pensions by reducing the need to sell assets at a loss in order to meet the minimum payment requirement. Extending the drawdown relief for a further year will help retirees to recoup capital losses on their pension portfolios as equity markets recover over time.
Currently, it is a requirement that minimum payments be made from a superannuation account-based pension at least annually. Minimum payments are determined by age and the value of the account balance as at 1 July each year. The minimum annual payment rule is designed so that retirees draw down on their superannuation capital over their retirement.
As in the past two years, the drawdown relief will be in the form of a 50% reduction in the minimum payment amounts for account-based, allocated and market-linked pensions. This change will require amendments to the Superannuation Industry (Supervision) Regulations 1994 and the Retirement Savings Accounts Regulations 1997. The necessary regulations will be made as soon as possible in the new financial year.
“SMSF advisors should ensure all clients taking account based pensions including transition to retirement pensions have been updated as to the reduced minimum drawdown which they must take. In order to achieve this accountants should prepare 30 June 2010 accounts in a timely manner”, says Susan Orchard, GAAP Consulting Network.
Superannuation outsourcing – APRA Releases Research Reports
The APRA released the results of research into outsourcing by large APRA-regulated superannuation funds. The research examined the outsourcing of eight functions – auditing, administrative services, legal services, asset allocation, sales and marketing, custody, actuarial services and investment management. It compared the fee arrangements of independent service providers to those providers related to a fund trustee, and compared fees across different service sectors to determine the extent to which providers in more concentrated markets charged more than providers in more competitive markets.
The key findings of the study are:
- Outsourcing is widespread, to the point that selecting and monitoring service providers constitutes one of the principal responsibilities of a superannuation fund trustee
- Not-for-profit funds (consisting of corporate, industry, and governmental funds) were more likely to outsource than retail funds, even more so when one looks through formal outsourcing arrangements with related service providers
- For some services, on average, trustees of retail funds pay higher fees to related service providers, particularly for administration, compared to independent service providers, and
- In highly concentrated markets such as custody, actuarial services and auditing, dominant service providers charge higher fees.
APRA Deputy Chairman Ross Jones said the findings provide a better understanding of trustee outsourcing. “The findings provide industry and members with a clearer picture of the outsourcing arrangements and fees of trustees of APRA-regulated superannuation funds.”
While 187 superannuation funds participated in the research survey, analysis was limited to the 115 funds that provided five-year fund-level investment returns. The results of the research have been published on the APRA website in two Research Working Papers: Australian superannuation: the outsourcing landscape, which examines outsourcing patterns of fund types; and Australian superannuation outsourcing: fees, related parties, and concentrated markets, which examines fee arrangements. The Research Working Papers are available on APRA’s website.
Financial Reporting Certification Guide released by G100 and Ernst & Young
A revised edition of the practical guide to implementing and enhancing the process supporting the Corporations Act 2001 and Principle 7.3 Certification has been published by the Group of 100 and Ernst & Young. The 2010 version revises the 2007 edition for: the impact of these revised Principles of Good Corporate Governance; the changes in operating conditions and the perceived impact of events such as the global financial crisis; and market feedback based on how certification programmes have developed within organisations.
‘Financial reporting certification – A practical guide to implementing and enhancing the process supporting the Corporations Act 2001 and Principle 7.3 certification (revised)’ contains the following:
- Overview
Chapter 1 – Introduction (Designing a process to support certification, Certification requirements for Australian companies, Scope, and The Risk Universe)
- Chapter 2 – Designing a process to support certification process (Roles and responsibilities, Developing the ICQ Challenges and insights)
- Chapter 3 – Financial reporting risks questionnaire (What to include in the ICQ, Accounting and financial reporting risk, Internal control risk, Fraud and corruption risk, Regulatory and policy compliance risk, Record keeping risk)
- Appendices Appendix 1 ‘Illustrative ICQ coversheet/instructions’, Appendix 2 ‘Illustrative sign off (below CEO/CFO level)’, Appendix 3 ‘Illustrative CEO/CFO statement’, and Appendix 4 ‘Questionnaire’.
MRRT and Implications for Financial Reporting at 30 June 2010
The latest GAAP Fact addresses the Minerals Resources Rent Tax (MRRT) and its implications for financial reporting at 30 June 2010, and is author by Michael Cain, Associate GAAP Consulting Network. The Federal Government’s announcement on 2 May 2010 of the proposed implementation of a ‘Resource Super Profits Tax’ (RSPT) created significant controversy amongst in our resource sectors. As result of this controversy, the Federal Government on 2 July announced the abolishment of the RSPT and in its place introduced a ‘Minerals Resources Rent Tax’ (MRRT). Further, it made an extension to the existing Petroleum Resource Rent Tax (PRRT) regime. Whilst the MRRT legislation has yet to be enacted, there are a number of financial reporting implications that will need to be considered by Boards, Audit Committees, and auditor of resource companies in their financial reports at 30 June 2010.
This GAAP Fact Sheet addresses: headline features of the MRRT Regime, extension of the existing PRRT Regime, Accounting for the proposed MRRT (including impairment, recoverable amount calculation considerations, impairment of exploration and evaluation assets, debt covenants, and disclosure requirements).
Clarity – Time is Running Out!
As auditors head into their busy season, one thing that they should now is plan their transition to Clarity Auditing Standards, and book their in-house training session, as 31December is just around the corner (the operative date of the Clarity Standards). Remember your Clarity auditing standards “to do” list:
- Read the 41 ‘Clarity’ auditing standards
- Determine the timetable
- Identify the differences between the old and new
- Prioritise and delegate
- Update audit tender proposals
- Update audit programs and checklists
- Revise audit manual and policies
- Revise precedent letters, audit reports etc
- Inform clients
- Train the audit staff
- Be finished by November 2010!
Our Clarity information products ‘Clarity Auditing Standards – An Introduction’ and the newly released ‘Clarity Auditing Standards – The Detailed Analysis’, and seven training options will make it easier to transition to the new suite of Auditing Standards. Take the pressure off your “to do” list by outsourcing Clarity tasks to the GAAP Consulting team; contact colin@gaap.com.au or 0421 088 611.
Training Feedback
The GAAP Consulting team has been undertaking financial reporting, auditing, and superannuation in house training and client briefings throughout Australia in the lead up to 30 June reporting and auditing season. Recent feedback from our clients has included:
“Thank you again for the training course last week Michael – the feedback from staff and clients has been very, very good”
“Great session this morning David. Well received by our attendees”, and
“Carmen’s session was informative and helpful and prompted a number of questions.”
We have eight partner equivalents to provide independent financial reporting, auditing and superannuation solutions. Our team consists of:
- Colin Parker (Financial Reporting and Forensic Accounting)
- David Sauer (Financial Reporting and Auditing)
- Justin Reid (Auditing and Ethics)
- Jim Dixon (Public and Not-for-Profit Sectors)
- Stephen LaGreca (Financial Reporting and Auditing)
- Susan Orchard (Superannuation)
- Carmen Ridley (Financial Reporting) and
- Michael Cain (Financial Reporting, Auditing and Ethics).
Over next four months, the GAAP Consulting team will be delivering in-house training and seminar presentations on such topics as tax effect accounting, financial reporting updates, SMFS audit and compliance, audit of SMSF workshops, clarity, micro audits, financial accounts preparation workshops, and RDR – well over 40 presentations.
On the eve of the 30 June reporting period, there have two major changes that will ease some of the burdens associated with financial reporting. The AASAB has introduced the Reduced Disclosure Regime for certain entities, and the Federal Government has amended the Corporate Act financial reporting requirements. We expect to continue to deliver training and briefing sessions to entities and accounting firms on these late breaking developments during the hectic financial reporting season of July-October (and then it is time for ‘Clarity’).
Special 30 June Year end GAAP Alert – Thank You
We would like to thank those readers of Special 30 June Year end GAAP Alert who have taken the time to contact us to express the benefit they obtained and their ongoing support. Comments like ‘great summary’, ‘saved me time and money’, ‘much to think about’, and ‘passed to a number of my colleagues’ are appreciated by the authors. Topics covered in 5400 word newsletter were:
- ‘What are the New Rules to Consider for 30 June 2010?’ by David Sauer
- ‘Fundamental Changes to Differential Reporting Regime’ by Carmen Ridley
- ‘ASIC’s 16 Areas of Focused Attention for 2010 Financial Reports’ by Michael Cain
- ‘Superannuation Audits for Years Ending 30 June 2010’ by Susan Orchard
- ‘Adopting Clarity Auditing Standards Early’ by Justin Reid, and
- ‘A Concluding Comment’ by Colin Parker.
Accounting
- 16 July ED 2010/2 ‘Conceptual Framework for Financial Reporting: The Reporting Entity’ – IASB
- 30 July Discussion Paper ‘Extractive Activities’ – IASB
- 9 August ED 195 ‘Defined Benefit Plans (proposed amendments to AASB 119)’ –AASB
- 16 August ED 199 ‘Measurement Uncertainty Analysis Disclosure for Fair Value Measurements (Limited re-exposure of proposed disclosure)’ – AASB
- 6 September ED 2010/2 ‘Defined Benefit Plans – Proposed Amendments to IAS 19’ – IASB
- 30 September ED 2010/3 ‘Presentation of items of Other Comprehensive Income (Proposed amendments to IAS 1)’ – IASB
- 8 October ED 200A ‘Proposals to Harmonise Australian and New Zealand Standards in Relation to Entities Applying IFRSs as Adopted in Australia and New Zealand’ and ED 200B ‘Proposed Separate Disclosure Standards’ – AASB
- 22 October 2010 ED 2010/6 ‘Revenue from Contracts with Customers’ – IASB
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