Meeting Your Financial Reporting and Auditing Needs

GAAP Fact Sheet No 3 “Accounting Standards Issued but not yet Operative as at 31 December 2009”, authored by Andrea Murphy CA, Manager –Accounting and Auditing Standards, GAAP Consulting is now available.  The purpose of this Fact Sheet is to describe the requirements of AASB 108 ‘Accounting Policies, Changes in Accounting Policies and Estimates’, when an entity has not applied a new Australian Accounting Standard that has been issued but is not yet operative.  It also provides listings of ‘Accounting Standards Issued but not yet Operative as at 31 December 2009’ and ‘Accounting Standards Operative’.

Introduction to Corporate Treasury 9-10 March Melbourne

Our colleague Susan Campbell is conducting a two day workshop 'Introduction to Corporate Treasury' in Melbourne on 9-10 March. The extensive program covers the following topics:

Day 1 Topics: What is a corporate treasury?; Roles of the front, back and middle offices; Understanding the markets; Major risks in treasuries; Understanding treasury products and how they are used to manage/create risks; Basic concepts within AASB 7 and 139; Cash flow and treasury systems issues; Foreign exchange and commodity products; Hedging vs trading; FX forwards, swaps & options; and Commodity futures.

Day 2 Topics: Interest rate derivatives and futures markets; Bills, bonds, forwards, swaps and futures; Caps, floors and collars; Hedging strategies; Processes and controls in corporate treasuries; Aims, benefits and limitations of controls; Hard and soft controls; Control environment; Spreadsheet issues; Treasury policy; and Limits and controls.

For further details: email - enquiry@argyll.net.au; web - www.argyll.net.au; phone - David or Susan 03 9744 5062.

Susan and her friends at GAAP Consulting are also available to present in-house training courses on corporate treasury operations and on the financial instruments suite of standards including the new AASB 9 'Financial Instruments'. For further information contact colin@gaap.com.au, mobile on 0421 088 611 or visit www.gaap.com.au.

‘Clarity Auditing Standards – Introduction Booklet’ Released

 Latest product release from GAAP Consulting is the ‘Clarity Auditing Standards – An Introduction’, authored Justin Reid, which provides a timely overview of the ‘Clarity’ Auditing Standards to partners and senior managers of accounting firms so that the audit practice can:

• Understanding the principles underlying ‘Clarity’ rewrite of Auditing Standards
• Identify the key changes to individual Auditing Standards that warrant attention
• Start to assess the implications of ‘Clarity’ Auditing Standards on the audit practice (e.g., timing, methodology management, training, resource requirements)
• Assist with an orderly implementation of the ‘Clarity’ Auditing Standards through a structured process, and
• Begin the client communication process.

Highlights of the publication include: A concise introduction to the ‘Clarity’ (Objectives of ‘Clarity’ Project, Operative Date of ‘Clarity’ ASAs, Clarity Auditing Standards with the Most Significant Changes, Standards Not Affected by Clarity); Comparative Table of Extant ASA and ‘Clarity’ ASA; Summary of ‘Clarity’ key changes; and Key Implementation Steps. The publication (approx 30 pages) is now be available.  The importance of a successful implementation cannot be overstated, and the level of effort for such should not be underestimated.  ‘Clarity Auditing Standards – An Introduction’ is an important first step in this process; and retails for $99.00 (inc GST).  An order form is attached.  Any questions, please contact Colin Parker on 0421 088 611 or  colin@gaap.com.au. 

December

Release of GAAP Alert No.23 2009 (31 December ) (5,000 words) includes 19 Australian and international financial reporting, auditing and corporate governance developments

• Revised Differential Reporting Framework Documents

• Related Parties and Other Amendments Releases from AASB

• AASB 9 and Consequential Releases from AASB

• AASB Releases Two Amending Standards

• AASB Interpretation 19 ‘Extinguishing Financial Liabilities with Equity Instruments’ Released

• New Compilations of AASB and Interpretations Now Available

• New Standard on Due Diligence Reporting

• ASIC Releases Best Practice Proposals on Confidential Information and Market Soundings

• APES 315 Compilation of Financial Information Revised

• AUASB Reissues ‘Foreword to AUASB Pronouncements’

• APESB Consultation Paper Proposed Revision of Code of Ethics for Professional Accountants

• G100 Less is More

• APRA Consults on Enhancements to Basel II Framework

• Government ED Thin Capitalisation (AIFRS and ADIs): Modification of Rules re AASBs

• IASB November Meeting Highlights

• IASB December Meeting Highlights

• IFRIC November Meeting Highlights

• IPSASB Achieves Goal of Substantial Convergence with IFRSs

• IPSASB Issues Consultation Paper on Reporting on Long-Term Sustainability of Public Finances

Release of GAAP Alert No.22 2009 (18 December ) (4,900 words) includes 19 Australian and international financial reporting, auditing and corporate governance developments

• AASB December Meeting Highlights

• Introduction to Corporate Treasury

• Revised Related Party Standard and other Amendments

• AUASB Meeting December Meeting Highlights

• APESB November Meeting Highlights

• FRC December Meeting Highlights

• ‘Tis the Season to be Consultative: Co-operatives and Associations

• A Guide to Audit Quality Released by ICAA

• Auditor’s Registration Cancelled by CALDB

• Approved Auditors and SMSFs

• APRA and ASIC Action against Trio Capital Ltd

• Updated Compensation and Insurance Arrangements for Licensees

• APRA Aligns General Insurance Prudential Reporting with AASBs

• IFRIC Interpretation Extinguishing Financial Liabilities with Equity Instruments

• IASB issues Minor Amendment to Pensions Accounting and First-time Adoption of IFRSs

• Japan Permits Domestic Use of IFRSs

• Task December Newsletter and Clarity

• GAAP Team in Action

• Merry Christmas from Us

November

Release of GAAP Alert No. 20 2009 (30 November) (4,900 words) includes 14 Australian and international financial reporting, auditing and corporate governance developments

• AASB ED on Amortised Cost and Impairment

• ASIC Commences Civil Proceedings against Former Officers of MFS Group

• ASIC Proceedings against Rich and Silbermann Fail

• Passage of Executive Pay Termination Payments Legislation

• MINCO Agrees Principles for Reform of Directors’ Liability

• ASIC Proposed Guidance to Directors on their Duty to Prevent Insolvent Trading

• Improving Protections for Corporate Whistleblowers

• ASIC Releases New Proposals on Superannuation Forecasts

• ATO Releases PSLA 2009/8 Asset is not an In-house Asset

• SMSFs and In-house Assets

• Related Party Disclosures – IASB Amendments

• IAASB Alert Use of External Confirmations

• GAAP Team in Action

• ‘Clarity Auditing Standards – An Introduction’ Publication Released

Release of GAAP Alert No.19 2009 (15 November ) (4,900 words) includes 11 Australian and international financial reporting, auditing and corporate governance developments

• IFRS 9 Beginning of End of IAS 39

• ASIC Liaison Meeting Highlights

• Financial Instruments Impairment ED Released by IASB

• IASB and FASB Reaffirm Convergence Commitment

• IASB 15-16 October Meeting Highlights

• IASB 19-23 October Meeting Highlights

• IASB 26-28 October Meeting Highlights

• CPA Quality Assurance Update

• ICAA Corporate Reporting Discussion Group on IFRS for SMEs

• GAAP Team in Action

• ‘Clarity Auditing Standards – An Introduction’ Publication Released

APES 315 ‘Compilation of Financial Information’ – 33 Action Items

A considered approach to implementing the requirements of APES 315 ‘Compilation of Financial Information’ is essential.  Internal policies and procedures need to be revised, staff trained and clients informed about the changes and the fee implications.  The experiences from dealing with APES 315 need to be incorporated into the continuous improvement processes of the firm.  A failure to adequately address the changes in a timely manner may expose the public practitioner to reputational, legal and professional risks. To assist members in their implementation considerations, see our APES 315 ‘Compilation of Financial Information’ – Action Items for Members in Public Practice’.

Presentation Feedback

Colin Parker, our team leader, presented a financial reporting update at Small Business Industry Day (June 2008) for The Institute of Chartered Accountants in Australia. The feedback comments included:

• Well presented
• Easy approach
• Good presentation for a very dry topic
• Extremely well presented with useful guidance & examples
• Knowledge of the subject matter
• Excellent presentation skills, and
• Absolutely fantastic.

Colin was also a key note presenter at the NIA Tasmanian Conference (May 2008) held at Port Arthur where he spoke on contemporary financial issues. The feedback included:

• Presented with in-depth knowledge and understanding of the standards
• Informative and well presented
• Understandable
• High quality
• Important topic and appropriately presented
• Lively, and
• Made a dry subject interesting.

Presentation Feedback: GAAP Consulting was pleased to participate in a series of seminars (Sydney, Melbourne and Perth) run by Task Technology, the Australian distributors of CaseWare audit and accounting software. The feedback from participants included:

• “The AASB session, Colin Parker’s session on upcoming AASB changes - useful and relevant heads up. Appreciate it.

• Colin Parker’s auditing update was most useful

• The inclusion of Colin Parker was excellent, and

• There were some good accounting updates from Colin that were useful in seeing where the audit profession is heading in the future’.