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Changes in Accounting Environment

Added on - 04 Mar 2020

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News Letter: Changes in Accounting Environment
Changes/ Development in the Financial ReportingEnvironmentThis news letter is issued to the staff involved in preparation of the financial statements. It is essentialfor the staff to be aware of the changes taking place in the accounting and financial reportingenvironment.The Australian accounting standard board is taking initiatives to harmonize theaccounting standards and make them comparable to the international accountingpractices.It has beenendeavored sincelong to bring inaccountingstandards thatmakes theaccountingpractices of all thecountriescomparable. TheIASB has takenmeasurableinitiatives in thisregard.Changes and Developments in Financial Reporting in AustraliaChanges Made by IASBChanges Made by AASB1.The AASB has issued an interpretation in July 2017 to provide for resolution to the accountingtreatment of income tax. The primary focus of this interpretation is to provide for theaccounting treatment for income tax in the cases of uncertainty regarding tax treatment ofcertain items of financial statements (AASB, 2017).2.Further, a new accounting standard AASB 17 has been issued by the Australian AccountingStandard Board in July 2017 to provide for the accounting of insurance contracts. Therefore, theinsurers are required to take note of this standard (AASB 17, 2017).3.A new accounting standard on Leases has been issued namely AASB 16. The new accountingstandard has been issued to harmonize the accounting treatment of leases with the internationalstandards. The new standard replaces the old AASB 117 (EY.Com, 2016).4.Three new accounting standards namely AASB 9 and AASB 15 would be issued by the boardand the same would be applicable from the financial year 2017-2018. AASB 9 deals withaccounting treatment of financial instruments in the books of public companies. It provides newrules in regards to presentation and measurement of the financial instruments. The AASB 15provides for recognition of revenues from the contract with the customers. This accountingstandard replaces the existing AASB 118 construction contracts (EY.Com, 2016).This newsletter isaimed ataddressing thechanges andamendments takingplace in theaccounting andfinancial reportingenvironment. Inthe recent years, ithas been seen thatthe accountingbodies all aroundthe world arechanging thefinancial reportingnorms. The localaccountingstandards of thecountries are beingendeavored toalign to theinternationalaccountingstandards (AICPA,2017). Thisnewsletter willfocus on thechanges in theAustralianaccountingstandards and theinternationalaccounting normsoccurring betweenthe periods from1May 2017 to 4August 2017.Contact Us:119, Black Street,London, UK.
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