Changes in Accounting and Financial Reporting by AASB

Running head: ACCOUNTING AND FINANCIAL REPORTING
Accounting and Financial Reporting
Name of the Student
Name of the University
Author’s Note

2ACCOUNTING AND FINANCIAL REPORTING
Table of Contents
Answer to question 1..................................................................................................................3
Answer to Question 2.................................................................................................................5
References::................................................................................................................................7

3ACCOUNTING AND FINANCIAL REPORTING
ANSWER TO QUESTION 1
CHANGES IN ACCOUNTING FROM 1 DECEMBER 2018 TO 31 MARCH 201 9 BY
AASB
AUSTRALIAN
AASB 2019-X
AMENDMENTS IN
THE ACCOUNTING
STANDARDS OF
AUSTRALIA (DATE:
24.01.2019)
This proposed standard of
AASB 2019-X includes
significant changes to
provide support to AASB
to publish Conceptual
Framework for Financial
Reporting (aasb.gov.au,
2019). Apart from this, as
per AASB, it is possible
for different users of the
financial statements to
comment on any
loopholes associated in
this proposed standard by
March 22, 2019. This
new standard will be for
the companies in private
sector having
accountability and it is
voluntary requirements
for other not-for-profit
firms to apply this
(aasb.gov.au, 2019).
ONEROUS
CONTRACTS – COST
TO FULFILL A
CONTRACT (DATE:
08.01.2019)
The intention of onerous
contracts is altering
AASB 137 to stipulate
the fact that the fulfilling
cost considers the
incremental costs
(aasb.gov.au, 2019). This
cost consists of material
and other costs that have
direct connection with the
contracts such as
depreciation changed on
the plant being used for
the contract (aasb.gov.au,
2019).
NOT-FOR-PROFIT
LESSEES’S RIGHT
OF USE ASSETS
(DATE: 20.12.2018)
AASB is considering
amending a specific
standard for providing a
provisional substitute for
not-for-profit lessees to
measure the right-of-use
assets under
concessionary leases at
cost price instead of fair
value (aasb.gov.au,
2019). The expected date
for the publication of this
standard is December 24,
2018. Concessionary
leases are the leases with
below market terms and
conditions to allow the
firms to advance their
objectives (aasb.gov.au,
2019). The standard of
this draft is based on
AASB Exposure Draft
ED 286 Amendments to

4ACCOUNTING AND FINANCIAL REPORTING
Australian Accounting
Standards- Right-of-Use
Assets of Not-for-Profit
Entities”. Ensuring
additional disclosure in
AASB 16 is the prime
objective of this standard.
Due to this, the users will
be able in gaining
additional information to
the financial statements’
users on concessionary
leases in the absence of
fair value information
(aasb.gov.au, 2019).
NEW AUSTRALIAN
ACCOUNTING
STANDARD (DATE:
20.12.2018)
AASB’s two new
standards have provided
clarification on business
and material definition;
and it is known as
“AASB 3 Business
Combination’ to help the
firms to determine
whether they need to
consider a transaction as
business combination or
as acquisition of assets
(aasb.gov.au, 2019). In
addition, another standard
“AASB 2018-7” assists in
clarifying the definition
of material and its
application in the AASB
standards and other
pronouncements. These
changes will be presented
in “AASB 101
Presentation of Financial
Statements”. The date of
applying these two
standards is January 1,
2019 (aasb.gov.au, 2019).
RESULTS OF
SURVEY ON THE
IMPORTANCE OF
SPECIFIC PURPOSE
FINANCIAL
STATEMENTS (DATE:
13.12.2018)
AASB has conducted a
survey to determine the
usefulness of special
purpose financial
statements. As per 78
percent of primary users,
it is needed to address the
issue that raises from the
failure to consider
measurement and
recognition of accounts.
For this reason, there is
need for additional
transitional relief to help
the equity and
consolidation accounting
in the companies
(aasb.gov.au, 2019).