Meeting Your Financial Reporting and Auditing Needs

August

Release of GAAP Alert No. 11 2010 (5,200 words) includes 16 Australian and international financial reporting, auditing and corporate governance developments:

• ASIC Provides Relief for Parent Entity Financial Statements
• ASIC’s Guidance on a Director’s Duty to Prevent Insolvent Trading
• Fundamental Changes to Insurance Accounting Proposed by IASB
• AUASB July Meeting Highlights
• Impact of Clarity Auditing Standards on SMSF Auditor’s Reports
• Applicability of AUASB Pronouncements re Use of Service Organisation
• AUASB Chair Kelsall Reappointed
• ASIC Accepts Enforceable Undertaking from Brisbane Auditor
• New Audit Guidance Statement Prudential Reporting by a Life Company
• First Home Savers Account – Audit Report
• Corporate Governance Reporting Remains High
• ASX Releases Amendments to Corporate Governance Principles
• UK FRC Publishes First Stewardship Code
• 5th Annual Self Managed Superannuation Conference
• Hall Chadwick Links With Shinewing, China’s Biggest Domestic Accounting Firm
• Addressing Accounting and Auditing Uncertainty

July

GAAP Fact Sheet No 4 “MRRT and Implications for Financial Reporting at 30 June 2010”, authored by Michael Cain FCA, GAAP Consulting Network, describes the requirements of the Mineral Resources Rent Tax’ (MRRT) and looks at its implications in the context of the 30 June 2010 reporting season.

Release of GAAP Alert No.10 2010 (5,100 words) includes 18 Australian and international financial reporting, auditing and corporate governance developments:

• RDR – Understanding and Early Adoption
• Corporate Reporting Reform – More Information Available from ASIC Soon
• Annual Improvements Project – More Amending Standards
• AASB 1048 Interpretation of Standards – Updated Listing
• More Changes Proposed to AASBs from Trans-Tasman Convergence
• Proposed Improvements to Level 3 Fair Value Disclosures
• Standard Business Reporting Opens for Business
• Essential Aspects of SBR from the AUASB
• New Rules to Improve Calculation of Income Tax Liabilities from Consolidated Groups
• Understanding Infrastructure Financial Management
• ED APES 230 ‘Financial Advisory Services’ Released by APESB
• Self-Funded Retirees to Benefit from an Extension in Drawdown Relief
• Superannuation Outsourcing – APRA Releases Research Reports
• Financial Reporting Certification Guide released by G100 and Ernst & Young
• MRRT and Implications for Financial Reporting at 30 June 2010
• Clarity – Time is Running Out!
• Training Feedback
• Special 30 June Year end GAAP Alert – Thank You

Release of GAAP Alert No.9 2010 (5,000 words) includes 15 Australian and international financial reporting, auditing and corporate governance developments

Differential Reporting and Making of RDR Standards – GAAP Implementation Publication

• Corporations Amendment (Corporate Reporting Reform) Act 2010 for 30 June 2010
• Corporate Reporting Regulations Approved
• AUASB Issues ASRE 2415 Review of a Financial Report – Company Limited by Guarantee
• ICAA Quality Review Program Focus and CPAs Top 10 Breaches
• APESB May Meeting Highlights
• New Bank Confirmation Certificates and Guidance from 30 September
• Assurance Reports on Controls at a Service Organisation Standard Released by AUASB
• NSW Incorporated Associations – Accounts and Audit
• Debentures and Unsecured Notes – ASIC strengthens Disclosure Requirements
• APRA releases Amended Superannuation Fund – Approved Audit Report Form
• IASB and FASB release ED on Revenue Recognition
• IASB Level 3 FV Disclosure Proposed Amendment
• GAAP Consulting in Clarity Implementation
• Clarity Tools Released by AUASB and GAAP Consulting

June

Release of GAAP Alert  30 June Special Edition (5,400 words) deals with six critical financial reporting and auditing issues.

•  ‘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.

Clarity Auditing Standards – Tools and Training

Confused by Clarity?  The GAAP Consulting has authored two publications ‘Clarity Auditing Standards – An Introduction’ and ‘Clarity Auditing Standards – The Detailed Analysis’ and offers 7 Clarity training courses to address your needs.

Reduced Disclosure Regime (RDR) – New Publication and Transition Services

What do you know about RDR Accounting Standards? Can you take advantage of early adoption to reduce financial reporting disclosures?   The GAAP Consulting has authored ‘The Reduced Disclosure Regime: A Practical Guide to Implementation’ and offers a wide range of training courses and consulting services to help you understand and implement these significant financial reporting changes.

Forensic Accounting Services – Litigation

In litigation matters legal and accounting firms and others parties need the assistance of expert subject matter specialists in accounting, auditing and related ethical standards. GAAP Consulting provides a range of forensic accounting services to legal firms and others.  We specialise in independent expert reports and consulting expert engagements relating to professional negligence and interpretation of accounting, auditing and ethical standards.

Release of GAAP Alert  No. 8 2010 (15 June)  (4,900 words) includes 16 Australian and international financial reporting, auditing and corporate governance developments

• AASB June Meeting Highlights and RDR Standards Imminent
• AASB Releases ED 197 Presentation of Items of Other Comprehensive Income
• Underlying Profits Survey Report Released by KPMG
• AUASB June Meeting Highlights
• Former Austpac Director Jailed for Fraud
• ASIC Bans NSW Director for Three Years
• Pollock Group Director Jailed on ASIC Charges
• COSO Study on Fraudulent Financial Reporting
• Alleged Victimisation of Superannuation Trustee goes to Trial
• International Valuation Standards ED Released by IVSC
• Pinnacle ‘Master Financial Statements’ Released
• WalterTurnbull Mergers with PWC
• Differential Reporting Insight No.1
• GAAP Appoints 8^th Partner Equivalent – Michael Cain
• Susan’s Clarity on Super
• Invitation to Hayes Knight Melbourne – Financial Reporting Update

Release of GAAP Alert  No. 7 2010 (31 May)  (4,600 words) includes 11 Australian and international financial reporting, auditing and corporate governance developments

• AASB May Meeting Highlights
• Government Introduces Legislation to Cut Red-Tape for Business
• AUASB’s ED on Review of a Financial Report – Company Limited by Guarantee
• The Corporations Amendment (No 1) Bill 2010 Released
• Significant Issues Discussed at Melbourne’s ASIC Liaison Committee Meeting
• Public Company Convicted for Failing to Lodge Financial Reports
• OPES Prime Director Faces Further Charges
• CAMAC’s Report on ‘Guidance for Directors’
• IASB Proposes Improvements to Presentation of Items of OCI
• Hacketts Joins the Lawler Alliance
• Carmen Ridley Joins GAAP Consulting Network

May

Release of GAAP Alert No.6 2010 (15 May) (4,700 words) includes 14 Australian and international financial reporting, auditing and corporate governance developments

• AASB/IASB Releases ED ‘Fair Value Option for Financial Liabilities’
• AASB Releases IASB Defined Benefit Plans ED
• ASIC Prospectus Relief to Help Corporate Bond Market
• National Regulation of Trustee Companies Commences
• Government Appoints New ASIC Deputy Chair and Commissioner
• 113 Company Officers Prosecuted in Three Months by ASIC
• APRA Proposals on Prudential Reporting Requirements for Basel II Enhancements
• APRA Discussion Paper to Update General and Life Insurance Capital Standards
• Government Releases Draft Market Supervision Regulations
• Establishment of a Centre for International Finance and Regulation
• Improvements to Seven IFRSs
• ‘Commonwealth Budget 2010-11 – A Tax Summary’ By Practising Tax
• APES 225 ‘Valuation Services’ and Assurance Services: Delineation Clear?
• GAAP in Print on Clarity Auditing Standards

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’.

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’.