Accounting and Financial Reporting

Running head: ACCOUNTING AND FINANCIAL REPORTING
Accounting and Financial Reporting
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2ACCOUNTING AND FINANCIAL REPORTING
Table of Contents
Answer to Question 1:................................................................................................................3
Answer to Question 2:................................................................................................................5
References::................................................................................................................................9

3ACCOUNTING AND FINANCIAL REPORTING
ANSWER TO QUESTION 1:
CHANGES IN ACCOUNTING STANDARD BY AASB FROM 1 DECEMBER
2018 TO 31 MARCH 2019
AUSTRALIAN
Aasb 2019-X
Amendments to
Australian
Accounting Standards
(24t h January 2019):
Consequential
amendments for
supporting the financial
reporting conceptual
framework of AASB are
mentioned in the above-
stated standard. In
addition, AASB has
allowed scope for
comments regarding any
flaw associated with the
consequential
amendments due by 22nd
March 2019. The
conceptual framework
application would be
restricted to for-private
sector firms having public
accountability and other
not-for-profit
organisations voluntarily
electing to apply the
conceptual framework
(Aasb.gov.au, 2019).
Onerous contracts- Cost
of fulfilling a contract
(8th January 2019):
The onerous contracts
intend for amendment of
137 for specifying that
the expense of meeting a
contract obligation takes
into account incremental
costs. These costs mainly
include the material costs
and assignment of other
costs having direct
relationship with the
contract like the
depreciation charge for
any equipment that an
organisation uses in order
to fulfil contracts
(Aasb.gov.au, 2019).
Right-of-Use Assets
of Not-for-Profit
Lessees (20t h
December 2018):
AASB has planned to
make amendment of a
standard would provide a
temporary alternative for
not-for-profit lessees for
gauging the right-of-use
assets under
concessionary leases at
acquired prices, instead of
using fair value. In case;
it is approved timely, the
standard would be
published on 24th
December (Aasb.gov.au,
2019). In this context, it
needs to be mentioned
that concessionary leases
are leases having below
market-terms
significantly and
conditions for allowing
the organisation in
furthering its objectives.
The standard of the draft
is dependent on “AASB
Exposure Draft ED 286