Financial Accounting Australia News Letter Report 2022

Running hr
FINANCIAL ACCOUNTING
News Letter

1FINANCIAL ACCOUNTING
Financial accounting
Name of the student
Name of the university
Student ID
Authors note

2FINANCIAL ACCOUNTING
NEWS LETTER
Amendment to the AAS – disclosures
for special purpose financial statement
to comply with requirement related to
recognition and measurement (4th July
2019)
ED 293 proposed that the entities are
required to lodge the SPFS with the ASIC
whereas the not-for-profit entities are
required to lodge the same with Australian
Charities and non-for-profits commission.
It is required for verifying whether the
accounting policies used in the SPFS are
conformed with AAS recognition and
measurement criteria. The entities shall
also furnish the information regarding
whether the companies have any
investments in joint venture or any
subsidiary and the approaches used for
accounting for the interests.
Amendments to AASB 112 – Deferred
tax assets and liabilities arising from
single transactions (25th July 2019)
As per the proposed amendments by IASB
companies shall recognise deferred tax on
initial recognition for any transaction to
the extent of the transaction to which it
generates equal amounts of deferred tax
assets as well as liabilities. The said
amendments will be also be applicable for
the transaction for which assets and
liabilities both are recognized such as lease
obligation and decommissioning.
Definition of non-for-profit companies
and related guidance (11th June 2019)
It has been proposed to change the existing
definition for not-for-profit organisation
with the substantive definition. Newly
proposed definition has 2 independent
parts – (i) main aim is delivering goods
and services for social benefit or for
community (ii) provision of equity is to
support the aim and not just providing
return to equity shareholders.
Updates summary regarding latest financial reporting news
Period covered: 1st April 2019 to 31st July 2019: