Changes in Accounting Standards for Australian Companies

Running head: NEWS LETTER
News Letter
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1NEWS LETTER
New Accounting Standard
The AASB bought forward three new
changes in the standard of accounting with
an improved one principle standard
(Aasb.gov.au 2018). AASB 2017-5: The
operative date for the changes made by
AASB 2014-10 is submitted to year on year
period which is commencing from 1st
January 2022 with numerous editorial
amendments. AASB 2017-6: A well scope
for changes to the AASB 9 fiscal instrument
offers authorization to profit making
corporations in assessing the charge of
amortization of fair worth through
comprehensive financial assets. AASB
2017-7: The amendments made in
accounting standard states that a profit
making entity having a long run attention in
associates and joint venture needs an
organization to account for the interest in
the joint venture and in associates by
employing the AASB 9 monetary tool
before assigning any loss and impairment
requirements.
Making Materiality Judgement:
The Australian Accounting Standard Board
has issued a statement that is concerned
with making judgements relating to
materiality. The executives and directors are
accountable for preparing the financial
statements to make continuous decisions
relating to materiality (Aasb.gov.au 2018).
A statements has been published by AASB
to make materiality judgements which
offers guidance to the auditors and
regulators.
News Letter
Changes Stated in the Accounting Standards for accounting and reporting of Australian
Companies
Period 1st December to 31st March 2018:

2NEWS LETTER
IFRS General Disclosure Standard:
The AASB has stated that even though the fundamental characteristics are referred
conceptual framework, the principles of communication can be regarded as the extension
of fundamental characteristics of the faithful presentation and relevance. In line with the
IFRS general disclosure standard profit making entities are required to include the
principles of effective communication in the general disclosure standard.
Locating information with IFRS Standard:
The AASB has received feedback relating to situations where financial
statements and annual reports have become difficult to assess and understand due
to the duplication and disintegration of information. The AASB has stated in its
preliminary view that general disclosure standard is required to be considered
with the standard of IFRS to disclose necessary information in an organizations
profit making report (Aasb.gov.au 2018). The preliminary view of AASB is that
the profit making entities yearly financial publications should address single
reporting package which should include reference to International Accounting
Standards of ISA 720.
Presentation of EBIT and EBITDA
The AASB in its preliminary view stated that EBITDA must be presented in the
financial statements as this will help in depicting the financial performance with fair
reflection of an organizations current analysis on expenses in terms of their nature. The
AASB opinion that presenting the earnings before interest, tax depreciation and
amortization in respect of their function would result in the blend in the nature of
expenses and functions of expenses causing disturbance in expenditure analysis.