Accounting and Financial Reporting

Running head: ACCOUNTING AND FINANCIAL REPORTING
Accounting and Financial Reporting
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2
ACCOUNTING AND FINANCIAL REPORTING
Table of Contents
Answer to question 1:.................................................................................................................3
Answer to Question 2:................................................................................................................5
References::................................................................................................................................8

3
ACCOUNTING AND FINANCIAL REPORTING
ANSWER TO QUESTION 1:
CHANGES IN ACCOUNTING STANDARD BY AASB FROM 1 DECEMBER
2018 TO 31 MARCH 2019
AUSTRALIAN
AASB 8: Right of Use
of Assets of Not for
Profits Entities) (20TH
DECEMBER 2018)::
The standards which was
implemented aimed to
provide temporary
solution to users for
selecting an appropriate
measure class to right of
use of an asset which is
under concessional lease
at the initial recognition
of the asset. In such a
situation the user has the
two options available to
him for measuring the
assets which are
measuring the assets at
cost as per “AASB 16
paragraph no 23-25” or it
can take it in fair value as
“AASB 16 paragraph no
25”.
Onerous contracts- Cost
of fulfilling a contract
(8th January 2019):
The intention behind
introducing a standard on
onerous contract is to
make amendments in
AASB 137 which
specifying cost related to
fulfilling a contract and
the same would also be
considering incremental
costs. The above-
mentioned costs would be
including material costs
and also a line of other
costs which are directly
related to the contract
(Aasb.gov.au, 2019). An
example to such a cost
can be given of
depreciation costs for an
equipment used for
performance of a
contract.
AASB 6:
Clarification
regarding definition
of Business in AASB
3
AASB effectively
clarified the definition of
business as well as
material definition with
the help of two new
amending standards. The
introduction of the new
standard is made so that
appropriate clarification
can be provided for the
definition of business
which is being laid out in
AASB 3. The
amendments which are to
be introduced include
minimum input and a
substantive procedure
which together gives
some output. In addition
to this, the new standard
also removes the
assessment which were
being made by market