Identification of Changes and Development in the Financial Reporting Environment

Running head: EXTERNAL REPORTING
External reporting
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2
EXTERNAL REPORTING
IDENTIFICATION OF CHANGES AND DEVELOPMENT IN THE
FINANCIAL REPORTING ENVIRONMENT:
EXPOSURE DRAFT:
AMENDMENT TO
AUSTRALIAN
ACCOUNTING
STANDARD-
DISCLOSURE IN
SPECIAL PURPOSE
FINANCIAL
STATEMENT OF
COMPLIANCE WITH
RECOGNITION AND
MEASUREMENT
REQUIREMENTS
The users of publicly
lodged special purpose
financial statements
would be provided greater
transparency by
improving the
comparability of the
financial statements. Non-
profit entities are required
to make a disclosure
about the explicit
statement for determining
whether the accounting
policies used in the
preparation of the
financial statement
comply with the
requirements of
measurement and
recognition as per the
AAS.
EXPOSURE DRAFT:
DEFERRED TAX
RELATED TO
LIABILITIES AND
ASSETS ARISING
FROM SINGLE
TRANSACTION
Companies would
recognize deferred tax
assets on such
transactions for which
they recognize both
liability and assets.
Recognition of the
deferred tax assets shall
be done for all the
temporary differences to
the extent that the taxable
profits can be utilized
against the deductible
temporary differences
(Crowther, 2018). In
addition to this,
amendment has been
made to the existing IAS
12. For identifying the
amount attributable to the
tax purpose, the tax base
of lease liability and right
of use asset is determined
by the entity.
EXPOSURE DRAFT:
REFERENCE TO
THE CONCEPTUAL
FRAMEWORK
A narrow scope
amendment has been
proposed to AASB 3
business combination
without any change in the
accounting requirements.
In the event of acquisition
of business, it would be
required by the entities to
record contingent
liabilities and provisions
that would not be
recorded in other
circumstances.